Discuss how the operation of a barter economy would be affected by the introduction of money (12m) MJ/2010/Paper 21 CIE
Markschemes were not much of help to me....thought of askin u guyz...plz help me solve this...
Alright. In economics, yuh need to follow certain steps to gain marks. I'll guide yuh how yer sps to answer the question but yuh would require yer notes to complete it.
In this question, they are asking yuh about the consequences of introducing money into the barter system. First of all, yuh need to define Barter system. Then, yer suppose to mention the function and characteristics of money. Doing so, yuh'll explain the examiner the basic stuff which will get yuh around 4 marks. Then, explain what will be the affects of bringing in money. "Trade will be easier, quicker and more widespread. Specialisation and
exchange will become common and can extend to the international level. Credit can be introduced. Economic activity and standards of living will be much higher when money works effectively." And in the then, write the disadvantages of bringing in money. Which is again given in the MS. "It may lead to problems such as inflation and counterfeiting."
Don't forget to give real live examples, if ther are any. They'll help yuh score full marks.
Hope this helped.