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    Transition From Barter To Money Economy

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    CreativeExhaust
    The document discusses the transition from a barter system to a monetary economy. It notes that the barter system, dating back to 6000 BC, involved the direct exchange of goods and services without a medium of exchange. While simple, the barter system had several disadvantages including the lack of a double coincidence of wants, wasted time, and difficulty determining trustworthiness. The evolution of money then began as obsidian, cowrie shells, and other items became used as a standardized medium of exchange and unit of account, solving many of the problems with barter and allowing for advanced economies.

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    Transition From Barter To Money Economy

    Uploaded by

    CreativeExhaust
    15 views10 pages
    The document discusses the transition from a barter system to a monetary economy. It notes that the barter system, dating back to 6000 BC, involved the direct exchange of goods and services without a medium of exchange. While simple, the barter system had several disadvantages including the lack of a double coincidence of wants, wasted time, and difficulty determining trustworthiness. The evolution of money then began as obsidian, cowrie shells, and other items became used as a standardized medium of exchange and unit of account, solving many of the problems with barter and allowing for advanced economies.

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    The document discusses the transition from a barter system to a monetary economy. It notes that the barter system, dating back to 6000 BC, involved the direct exchange of goods and services without a medium of exchange. While simple, the barter system had several disadvantages including the lack of a double coincidence of wants, wasted time, and difficulty determining trustworthiness. The evolution of money then began as obsidian, cowrie shells, and other items became used as a standardized medium of exchange and unit of account, solving many of the problems with barter and allowing for advanced economies.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    15 views10 pages

    Transition From Barter To Money Economy

    Uploaded by

    CreativeExhaust
    The document discusses the transition from a barter system to a monetary economy. It notes that the barter system, dating back to 6000 BC, involved the direct exchange of goods and services without a medium of exchange. While simple, the barter system had several disadvantages including the lack of a double coincidence of wants, wasted time, and difficulty determining trustworthiness. The evolution of money then began as obsidian, cowrie shells, and other items became used as a standardized medium of exchange and unit of account, solving many of the problems with barter and allowing for advanced economies.

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    of 10

    Transition from Barter

    to Money Economy
    Supplementary Video # 1
    The Barter System
    it is considered as the oldest form of
    commerce
    it was introduced way back in 6000 BC by
    Mesopotamian tribes
    it was used to obtain food, salt, tea, weapons, spices
    and services
    it involves a direct exchange of goods or services
    without an intervening medium of exchange or
    money
    Pros and Cons
    Pros Cons
    - simple system - lack of double coincidence of
    wants
    - does not need money - wastage of time
    - lack of standard unit of account/
    - flexible
    measure of value
    - lack of standard for future
    payments
    - impossibility of subdivision
    of goods
    - difficulty in storing wealth
    - determining the
    trustworthiness of the person
    Supplementary Video # 2
    The
    Evoluti
    on of
    Money
    Obsidian (glass-like
    volcanic rock)

    paper money
    (Tang dynasty)

    Cowrie shells
    Bronze cast of leather
    miniature knives money
    and spades 640 BC one-third
    stater electrum
    coin from Lydia
    (Turkey)
    Supplementary Video # 3
    Supplementary
    Video # 4

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