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Question

Which of the following is not a hurdle to the barter system?


A

Problem of reciprocal demand

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B

Scope of specialization

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C

Indivisibility

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D

Complex calculations

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Solution

The correct option is B

Scope of specialization


In the barter system, goods cannot be quickly exchanged for other goods. Large scale production is not profitable in view of this limited demand for various goods. Hence, the scope of division of labour in the production process also becomes limited.


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