Money is a positive thing for a society to have, since it provides citizens with a medium of exchange that they can use to pay for needed goods and services. Bartering was common before money became widely used, but it has limitations that make it much more inflexible than money.Continue Reading
Someone wishing to barter has to first find a person who has the item or service that he or she wants, and this person must also be willing to conduct a trade. In addition to logistical issues, bartering does not allow citizens to store money for future necessities.
Money may be stored or invested until it is required, allowing people to build their wealth. It also permits individuals to purchase things of all values. With bartering, the exchange is generally for an even value.Learn more about Economics
International trade is the exchange of goods and services between two different countries. International trade creates a mutually beneficial set up between countries and companies that operate within them, as the market for goods and services produced in a country expands globally.Full Answer >
A traditional economy is an economic system where customs, traditions and beliefs determine the goods and services created by the society. It is dependent on agriculture, hunting and gathering, fishing or any combination of the above. Also called a subsistence economy, it may involve use of barter trade instead of currency.Full Answer >
Consumer sovereignty is the economic theory that consumers can best determine what goods and services should be produced in a society. Firms, such as businesses and companies, produce whatever the consumer prefers. Economist William Harold Hutt coined this term in his 1936 book "Economists and the Public."Full Answer >
Total utility is maximized when consumers find a combination of goods and services that provides the most use and satisfaction for the money spent. The pursuit of total utility is an ongoing process for consumers who seek to maximize satisfaction despite limited financial resources to buy new goods and services.Full Answer >