1. Why is money better than a bartering system? A People might not have items to trade.
B It helps people to agree on the value of something.
C People might lose track of their money.
D Both A and B
E Both B and C

The correct answer is D. Both A and B

Explanation:

Bartering is an economic system in which products are directly exchanged for other products. For example, a pound of oranges is exchanged for a pound of rice. Due to this, in bartering, there is no money or elements such as coins or bills that represent the value of products or services. This system has both advantages and disadvantages in comparison to the use of money.

In terms of disadvantages, bartering implies individuals need products or services they can use to exchange, which might not be possible for all individuals as not all individuals might produce a product or have a product other are interested in. Also, in bartering the value of products varies, for example, a pound of blueberries can be equal to a pound of rice, three pounds of rice, or even half pound of rice, as values change according to the situation of those participating in the exchange. This means, in bartering the value fluctuates and it is more difficult to agree on the value of something, which does not occur if money is used as each product has a defined price which might just vary slightly. According to this, options A and B are advantages of money over bartering.

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