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In barter economy there is no medium of exchange. 1___________________________. In a barter economy, the seller and the buyer each must want something the other has to offer. 2______________________________. There is a double coincidence of wants.
3___________________________. People must spend a lot of time and effort finding others with whom they can make mutually satisfactory swaps. 4___________________________.
Goods are traded directly or swapped for other goods.
Each person is simultaneously a seller and a buyer.
Trading is very expensive in a barter economy.
Since time and effort are scarce resources, a barter economy is wastefill.