How does money differ form barter?
Money is mostly important as a way to get goods and services.
Money is used to exchange goods and services.
Money has value only because people agree that it has value.
Money has been used for thousands of years
as a medium of exchange.
With barter, goods and services are exchanged directly without the use of money.
In bartering, the value of goods and services is subjective and can be harder to determine, whereas money provides a standardized unit of value.
Barter requires a double coincidence of wants, where both parties must have something the other wants, whereas with money, individuals can trade for what they want regardless of the wants of the other party.
Money is more portable and convenient compared to bulky and perishable goods that may be involved in bartering.
Money allows for economic efficiency and specialization, as individuals can specialize in producing a particular good or service and then use the money earned to acquire other goods and services from specialists in other areas. Bartering can be more limited in terms of choices and opportunities for specialization.
Overall, money provides a more flexible and efficient means of exchange compared to barter.