A barter economy is different from a money economy in that a barter economy:

• A. requires a double coincidence of wants for exchange to occur
• B. uses a standardized medium of exchange for all transactions
• C. facilitates easier comparison of prices across goods and services
• D. eliminates the need for direct exchange between individuals

Answer: (A)

Verified step by step guidance

1. Understand the concept of a barter economy: it is an economic system where goods and services are exchanged directly without using money.
2. Recognize that in a barter economy, for a trade to happen, both parties must want what the other has; this is known as the 'double coincidence of wants.'
3. Contrast this with a money economy, where money acts as a standardized medium of exchange, eliminating the need for a double coincidence of wants.
4. Note that a money economy facilitates easier comparison of prices across goods and services because prices are expressed in a common unit (money), which is not possible in a barter system.
5. Conclude that the key difference is that a barter economy requires a double coincidence of wants for exchange to occur, while a money economy does not.