Anonymous

You have decided to create a money system. You have to choose one of the following to serve as currency: apples, pigs, rocks, or cigarettes. Which would you chose and the reasons why? (Hint: review the five limitations of barter.)

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Smiley Crankenhoof Profile

I would choose to base a monetary system on chickens, because a chicken represents one good meal for a small family. My cash would have chickens printed on it.


HappyTo BeHereTo Profile

Sounds like homework, so I'll just discuss and let you choose.  Follow the "Hint" and review:

http://www.yourarticlelibrary.com/economics/money/barter-exchange-meaning-and-limitations-of-barter-exchange/30312/

Apples and pigs are difficult to store.  The apples will rot, and pigs require feed and cleanup.  However, they meet the basic need of food.

Cigarettes may meet the double coincidence of wants, but many don't smoke.  In prison they've served as barter.  Non smokers also trade them.

Rocks in the form of small pebbles could work.  The various types of stones can serve as different denominations.  However, they're common.  Think value.

Good luck with your studies.

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