|Question 27Verbal

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While researching a topic, a student has taken the following notes:
- Squirrel pelts were used as commodity money in medieval Russia.
- In a commodity money economy, specific goods act as a common unit of monetary exchange that can be used to buy and sell other goods.
- In a barter economy, goods are traded directly between parties without the use of money.
- Economists Bruce Champ and Scott Freeman: bartering requires that "the person with whom you wish to trade must not only have what you want but also want what you have. The inefficiency is apparent; a great deal of time is spent merely finding someone with whom to trade."
The student wants to paraphrase a quotation from Champ and Freeman to explain the inefficiency of barter economies. Which choice most effectively uses relevant information from the notes to accomplish this goal?
Champ and Freeman: when "individuals might come to accept one particular good in exchange for others even if they do not wish to consume that good...barter economies essentially become monetary economies."
A
The precise alignment of desires that barter economies require, Champ and Freeman contend, makes them inefficient.
B
Champ and Freeman argue that inefficient barter economies can become monetary economies if a good becomes a unit of exchange.
C
According to Champ and Freeman, the inefficiencies of barter economies become apparent when goods are traded between parties without the use of money.
D