An economic system in which money is not used as a medium of exchange is a:

• A. command economy
• B. mixed economy
• C. barter system
• D. market economy

Answer: (C)

Verified step by step guidance

1. Understand the role of money in economic systems: Money typically serves as a medium of exchange, a unit of account, and a store of value, facilitating trade by eliminating the inefficiencies of direct exchange.
2. Identify what it means when money is not used as a medium of exchange: In such a system, goods and services are traded directly without using money, which is known as barter.
3. Recall the definitions of the given economic systems: A command economy is centrally planned, a mixed economy combines elements of market and command economies, and a market economy relies on supply and demand with money as the medium of exchange.
4. Recognize that the barter system is characterized by direct exchange of goods and services without money, fitting the description of an economic system where money is not used as a medium of exchange.
5. Conclude that the correct answer is the barter system, as it uniquely matches the condition of no money being used in transactions.