Answer to Question #218606 in Microeconomics for Mickibounce

Question

The birth of money is the death of barter system. Discuss?

Answer 1

The birth of money is the death of the barter system since using money is more effective because it is easier to exchange different goods and buy and sell goods without exchanging them for other goods. Money is divisible into smaller accounts; hence one can purchase different quantities using different amounts of money, and also, money is acceptable.