What is a barter system? What are the drawbacks of this system?
Barter is a type of trade in which goods or services are directly exchanged for other goods or services, without the use of money.
(a) Difficulty of double coincidence of wants
(b) Lack of common unit of value
(c) Lack of a system for future payments
(d) Lack of system for storage of value
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Money held for contingencies reflects the _______ demand for money.
A) speculative B) exchange C) transactions D) precautionary
Which of the following statements about commission systems of compensation is false?
A) During sluggish periods, an employer's payroll expenses will decline along with sales. B) If workers are paid on the basis of the number of units produced, they may become less concerned about quality. C) They increase the risk to workers because sometimes output declines for reasons not connected to the worker's effort. D) The lack of income stability will induce the more productive workers to leave in search of more secure employment.