Money makes trade easier and more efficient than bartering, because:

Question

money can be exchanged for goods and services that a person wants.

bartering never results in both individuals being completely satisfied.

bartering requires the complete absence of money.

money will never lose its value over time.

That is correct.

Answer 1

Let's examine the statements regarding why money makes trade easier and more efficient than bartering:

1. Money can be exchanged for goods and services that a person wants. - This is true. Money serves as a universal medium of exchange, allowing individuals to use it to buy a variety of goods and services, making trade more convenient.

2. Bartering never results in both individuals being completely satisfied. - While bartering can sometimes lead to dissatisfaction due to the need for a double coincidence of wants (both parties must want what the other has), it's not entirely accurate to say it never results in satisfaction.

3. Bartering requires the complete absence of money. - This statement is misleading. Bartering can occur in the presence of money; people may choose to barter instead of using money for various reasons, such as personal preference or economic conditions.

4. Money will never lose its value over time. - This statement is false. Money can lose its value due to inflation, changes in economy, or loss of trust in the currency.

In summary, the first statement best captures one of the primary reasons why money is more efficient than bartering: it provides a common medium of exchange that can facilitate trade much more easily than trying to negotiate and find an exact match for wants in a barter system.