MGTA01H3 Chapter Notes - Chapter 8: Barter
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MGTA01H3 Full Course Notes
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Document Summary
The value of everything you own is your personal wealth. Over the centuries, items as diverse as stone wheels, salt, wool, and shells have been used as money. Money: any object generally accepted by people as payment for goods and services. A barter economy is an economy in which goods are exchanged directly for one another. A money economy is an economy in which a seller would sell his good, receive money, and exchange the money for another good. The barter economy is quite inefficient, but it is still used in various places around the world such as russia. It acts as a unit of account because all products can be valued and accounted for in terms of money. Credit has become a major factor in the purchase of consumer goods. Credit cards are money substitute; serve as a temporary medium of exchange but are not a store of value. Credit cards are convenient, and extremely profitable for issuing companies.
