What are the 3 major problems with the barter system?

Answer 1

The barter system faces several major challenges: first, the lack of a common medium of exchange makes it difficult to determine the relative value of goods and services, leading to inefficiencies in trade. Second, the requirement for a double coincidence of wants means both parties must have what the other needs at the same time, which complicates transactions. Lastly, barter systems often struggle with scalability, as they become unwieldy in larger economies where diverse goods and services are exchanged.