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 a 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.
Business · High School · Mon Jan 18 2021
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The economic term given to this kind of exchange is:
b. Barter
Barter refers to the direct exchange of goods or services for other goods or services without the use of money. In this scenario, Andrew and Timmy are engaging in a direct exchange, trading Andrew's boat for Timmy's car without involving money in the transaction.