Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 32: Q. dFCT (page 722)

Why was it more efficient to end the quota? (Hint: Why do you think that people usually accept money in exchanges instead of engaging in barter of one good for another every time they trade?)

Short Answer

Expert verified

That is the old haggling practice that traces back just before emergence of the appreciating asset.

Step by step solution

01

Introduction

Barter is the transfer of goods and services involving multiple people without the need for payment or a currency channel like it really is a checking account.. In short, exchanging comprises one side supplying one service or product in consideration for just another party offering that commodity.

02

Given Information

Consumers and companies purchase commodities based on initial value and evaluations.

03

Explanation

Bartering is predicated on a simple concept: multiple individuals agree the market merits of various services and goods but then just transfer those inside of an implied contract.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

To answer the questions below, consider the following table for the neighboring nations of Northland and West Coast. The table lists maximum feasible hourly rates of production of pastries if no sandwiches are produced and maximum feasible hourly rates of production of sandwiches if no pastries are produced. Assume that the opportunity costs of producing these goods are constant in both nations.

a. What is the opportunity cost of producing pastries in Northland? Of producing sandwiches in Northland?

b. What is the opportunity cost of producing pastrics in West Coast? Of producing sandwiches in West Coast?

Why do you suppose that infant-industry firms that have developed from novel products imports their governments to exact policies aimed at restraining parallel imports.

How could multilateral trade agreements established for all nations through the World Trade Organization help to prevent both trade diversion and trade deflection that can occur under regional trade agreements, thereby promoting more overall international trade?

Consider Figure 32-3. What is the effect on U.S. textile consumers' total expenditures of the imposition of the quota that generates a movement from point E1 to point E2?

Some critics of the North American Free Trade Agreement (NAFTA) suggest that firms outside NAFTA nations sometimes shift unassembled inputs to Mexico, assemble the inputs into final goods there, and then export the final product to the United States in order to take advantage of Mexican trade preferences. What term describes what these critics are claiming is occurring with regard to U.S.-Mexican trade as a result of NAFTA? Explain your reasoning.
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free