Which of the following is omitted in a barter transaction?

• A. Money as a medium of exchange
• B. Opportunity cost
• C. Goods and services
• D. Mutual agreement between parties

Answer: (A)

Verified step by step guidance

1. Understand the nature of a barter transaction: it involves the direct exchange of goods and services between parties without using money.
2. Identify the key components present in a barter transaction: goods and services are exchanged, and there is a mutual agreement between the parties involved.
3. Recall the role of money in economic transactions: money acts as a medium of exchange, facilitating trade by eliminating the need for a double coincidence of wants.
4. Analyze what is missing in a barter system compared to monetary transactions: since barter does not use money, the medium of exchange (money) is omitted.
5. Confirm that opportunity cost is still relevant in barter because parties must consider what they give up when trading, so it is not omitted.