In the context of economics, what does it mean to barter?

• A. To earn income from investments
• B. To trade goods or services without using money
• C. To create new goods
• D. To sell products for money

Answer: (B)

Verified step by step guidance

1. Understand that bartering is a method of exchange where goods or services are traded directly without the use of money.
2. Recognize that in a barter system, individuals or parties negotiate to trade items they have for items they want, relying on mutual agreement of value.
3. Note that bartering predates the use of money and is often used when currency is unavailable or in informal economies.
4. Differentiate bartering from earning income from investments, creating new goods, or selling products for money, as these involve monetary transactions or production rather than direct exchange.
5. Conclude that bartering specifically means trading goods or services without using money.