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7 August, 16:52

Andrew and Timmy are neighbors. Andrew owns a boat but never uses it. Timmy owns a car that he no longer needs since his son left for college in another state. Andrew needs a car. Andrew and Timmy make an agreement to trade the boat for car. What is the economic term given to this kind of exchange? a. increase production and thus increase the supply b. Barter c. market economy d. money.

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  1. 7 August, 17:03
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    The correct answer is letter "B": Barter.

    Explanation:

    Barter is the most ancient form of trade that exists in the world. It consists of exchanging goods or services that may have a similar value for the individuals who perform the transaction. The problem with barter is that the values of the goods or services being exchanged are not standardized and that is why currency became a need.
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