Question

From the above visual depiction, identify the problem faced by two people shown in this image.

Options

• Lack of double coincidence of wants

• Lack of store of value

• Lack of standard of deferred payment

• Disagreement between rate of exchange

Answer 1

Lack of double coincidence of wants

Explanation:

The image depicts a barter system in which a trade cannot take place because the two people’s needs do not match. The person on the left has apples but needs wheat, whilst the person on the right has hens but requires veggies. Because neither person possesses what the other wants, a transaction cannot take place due to a lack of a double coincidence of wants, a major disadvantage that led to the introduction of money.