Class 7 Social Science — Chapter 11: From Barter to Money

What you'll learn

• ▸The Barter System
• ▸The Problem of Double Coincidence of Wants
• ▸Lack of a Common Measure of Value
• ▸Physical Limitations of Barter Goods
• ▸Early Forms of Commodity Money
• ▸Barter in the Modern World

Chapter Summary

--- PAGE 1 --- From Barter to Money CHAPTER 11 “The importance of money flows from it being a link between the present and the future. - John Maynard Keynes 20th century economist ” Fig. 11.1 The Big Questions ? 1. How did exchange take place before money? 2. Why did money come into existence? 3. How has money transformed into various forms over time? In the theme “Tapestry of the Past”, you read about the crops that people grew, such as food grains or goods they made like carnelian beads. How do you think they exchanged these goods for things that they needed? --- PAGE 2 --- Barter System: a way of exchanging goods and services without using money. People exchanged goods or services for other goods and services. This system is called the **barter system**. How did this work? Suppose you need a pencil and have an extra eraser. Meanwhile, your classmate forgot to bring their eras…

Practice Questions from this Chapter

Tap "Get Solution" on any question to ask our AI tutor.

1. Explain how barter works simply. Get Solution →
2. Compare ancient money to modern money. Get Solution →
3. List problems with bartering today. Get Solution →
4. What is the system of exchanging goods and services directly for other goods and services without using money called? Get Solution →
5. According to the text, which of the following was NOT used as a commodity in early barter systems? Get Solution →
6. What term describes the situation where two people each have something the other wants and can exchange them directly? Get Solution →
7. On which Pacific island were giant discs of rock called Rai stones used as money? Get Solution →
8. What does the term 'portability' refer to in the context of the problems with barter? Get Solution →

Did you know?

• 💡 Ancient Romans paid soldiers with salt, which is why we have the word "salary".
• 💡 The earliest known coins were made from electrum in Lydia around 600 BC.
• 💡 Giant stone wheels, called Rai stones, were used as money on Yap Island.
• 💡 Red bird feathers once served as currency on the Solomon Islands.
• 💡 In ancient times, cocoa beans were used as money by the Aztec civilization.

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