14 lines
594 B
Markdown
14 lines
594 B
Markdown
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# Barter
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## Definition
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Barter is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is a form of trade that predates the use of money.
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## Source Chapter
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Book 1, Chapter 4
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## Context
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Smith explains the limitations of the barter system, especially in a society where the division of labour is prominent. These limitations, according to Smith, led to the development and use of money as a common medium of exchange.
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## Economic Domain
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Economic Anthropology, Economic History, Microeconomics
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