Barter
The exchange of one good or service for another without using money.
What is barter?
Anything that people generally accept in exchange for goods and services.
What is money?
Commercial activities that help people buy and sell goods and services.
What are aids to trade?
How many stages of production are there?
What is three?
Trading a basket of fruit for a pair of shoes without using money is an example of this.
What is barter?
Shells, beads, grain, animal teeth, and fishhooks were used as these before modern money.
What are early forms of money?
This aid to trade moves goods from one place to another.
What is transport?
The three main types of production are primary, secondary, and this type.
What is tertiary production?
This problem happens when two people each have what the other person wants at the same time.
What is the double coincidence of wants?
Money should be easy to carry from one place to another.
What does it mean for money to be portable?
This aid to trade helps people make payments and provides short-term finance.
What are banking and finance?
Farming, fishing, and mining belong to this type of production because they get resources from nature.
What is primary production?
Trading a small amount of rice for half of a cow can be difficult because some goods cannot be easily split into smaller parts.
What is the problem of divisibility?
Money performs this function when it is used to buy goods and services.
What is a medium of exchange?
This aid to trade stores raw materials, partly finished goods, and finished goods safely until they are needed.
What is warehousing?
Making furniture from wood and turning cotton into clothing are examples of this type of production.
What is secondary production?
Early people exchanged extra goods to get things they needed. This was an early form of meeting needs by working with other people.
What is indirect production?
Money made trade easier because people no longer had to find someone who wanted exactly what they had and also had exactly what they wanted.
How did money solve the double coincidence of wants problem?
When workers repeat the same task over and over, they become experts at their jobs and output per person increases. This is called this.
What is specialization (or division of labour)?
Banking, teaching, transport, and buying and selling goods are examples of this type of production.
What is tertiary production?