Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:
An individual who has a surplus of rice which she wishes to exchange for clothing. She needs to find another person who has diametrically opposite demand for rice with a surplus of clothing to offer in exchange. Which of the following attribute/attributes of barter exchange is/are mentioned here?
Options:
Double co-incidence of wants
Search costs
Both of above
None of them
Correct Answer:
Both of above
Explanation:
The above situation refers to the double co incidence of wants and cost of finding the right person i.e. search costs.