Question 1 of 15beginner🧠 RememberShort Answer3 marks

How does the barter system take place and what kinds of commodities were used for exchange under the system?

Correct Answer

The barter system takes place when people exchange goods or services for other goods and services without using money.

For example, if one person has an extra eraser and needs a pencil, while another person has an extra pencil and needs an eraser, they can directly exchange these items.

Various commodities were used for exchange under this system, including cowrie shells, salt, tea, tobacco, cloth, cattle (cows, goats, horses, sheep), seeds, and other goods that people possessed.

Exercise: Questions and activities | Q: 1 | (Page Page 16)
For More Understanding

Explanation

The chapter explains that the barter system was the earliest form of exchange where people exchanged goods or services for other goods and services. The chapter lists several commodities used: cowrie shells, salt, tea, tobacco, cloth, cattle (cows, goats, horses, sheep), seeds, etc. The example of exchanging an eraser for a pencil illustrates how the system works in practice.

Solution Steps

  1. The barter system involves direct exchange of goods or services without the use of money

  2. Example: a person with an extra eraser can exchange it with someone who has an extra pencil

  3. Commodities used included cowrie shells, salt, tea, tobacco, cloth, cattle (cows, goats, horses, sheep), seeds, and other possessed goods

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