Question

practice question 2
bartering involved trading one good or service for another rather than using money to facilitate exchange. from an economics standpoint, the greatest disadvantage to using barter is that:
a. barter emphasizes community - building rather than work
b. barter limits economic productivity and growth
c. barter promotes local versus global economic development
d. barter applies to future contracts only

Explanation:

In economics, bartering lacks the efficiency of money - based transactions. It can't easily scale up production and trade, thus limiting economic productivity and growth. Option A is not a main economic drawback. Option C is not the greatest disadvantage. Option D is incorrect as barter is not limited to future contracts.

Answer:

B. barter limits economic productivity and growth