Think About It (Page 233) What are the instances of double coincidence of wants in the above example? Class 7
hardThink About It (Page 233) What are the instances of double coincidence of wants in the above example? Class 7
Question 1.
What are the instances of double coincidence of wants in the above example? Class 7
Answer:
In the example, double coincidence of wants occurs when the farmer finds someone who needs an ox and is willing to trade something the farmer wants, like shoes, medicines. However, both parties must agree on the value of their goods for the exchange to happen. For instance, if the farmer wants shoes in exchange for his ox, he must find a shoemaker who not only wants an ox but also thinks the ox is worth the shoes. If the shoemaker values the ox less than the shoes, the trade won't happen.
Question 2.
In the situation given above, what are the cases where you could encounter the lack of a common standard measure of value?
Answer:
The lack of a common standard measure of value can be seen in the farmer's situation when he tries to trade his ox for various items. For example, how many bags of wheat equal one pair of shoes? Without a common measure, both the farmer and the shoemaker might have different opinions on the value of their goods. This confusion can lead to disagreements and make it hard to complete the exchange.