Question

Prices in a barter economy __________.

• A. cannot exist
• B. are fixed by law
• C. are in relative quantities of goods exchanged
• D. are in terms of the acceptable unit of value

Answer 1

The correct option is C are in relative quantities of goods exchanged

The barter system simply means the exchange of goods and there is no medium of exchange of such as money or metals.

As such the values or prices in such an economy are determined with respect to the quantities of goods exchanged.