1) A problem with barter exchange when there are many goods is that in a barter system
A) transactions costs are minimized.
B) there exists a multiple number of prices for each good.
C) there is only one store of value.
D) exchange of services is impossible.
2) In a barter economy the number of prices in an economy with N goods is
A) [N(N 1)]/2.
B) N(N/2).
C) 2N.
D) N(N/2) 1.
3) If there are five goods in a barter economy, one needs to know ten prices in order to exchange one good for another. If, however, there are ten goods in a barter economy, then one needs to know ________ prices in order to exchange one good for another.
A) 20
B) 25
C) 30
D) 45