What are the different types of difficulties you encountered in the situation above?
The difficulties encountered in the farmer's situation include several challenges of the barter system.
Double coincidence of wants refers to the difficulty of finding someone who exactly wants what you have and has what you need.
Lack of common standard measure of value creates difficulty in deciding fair exchange proportions between an ox and other goods.
Problem of divisibility arises because you cannot divide an ox into parts for smaller purchases.
Problem of portability makes it difficult to carry an ox or large quantities of wheat to the market.
Problem of durability means wheat cannot be stored for long as it may rot or be eaten by rats.
Multiple transactions needed creates inefficiency, as the farmer has to make several exchanges instead of one direct purchase.
Explanation
The chapter discusses these difficulties on Pages 4-6. It introduces 'double coincidence of wants' when both parties must want each other's goods. It explains 'no common standard measure of value' for comparing goods. The 'problem of divisibility' is addressed: 'you cannot exchange only a part of the ox for a sweater.' The 'problem of portability' is mentioned: 'Taking the ox everywhere is a problem.' The 'problem of durability' is explained: 'you cannot store the wheat for long; it would rot or get eaten by rats!'
Solution Steps
Double coincidence of wants—finding someone who exactly wants what you have and has what you need
Lack of common standard measure of value—difficulty in deciding fair exchange proportions
Problem of divisibility—cannot divide items like an ox into parts for smaller purchases
Problem of portability—difficulty in carrying goods like an ox or large quantities of wheat
Problem of durability—perishable goods like wheat cannot be stored for long periods
Multiple transactions needed—requiring several exchanges instead of one direct purchase