All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
Commerce Exam  >  Commerce Questions  >  What is the fundamental economic concept that... Start Learning for Free
SaveJoin the Discussion on the App
What is the fundamental economic concept that involves the transfer of goods and services through either a monetary system or barter system?
  • a)
    Exchange
  • b)
    Distribution
  • c)
    Production
  • d)
    Consumption
Correct answer is option 'A'. Can you explain this answer?
FREE This question is part of
Download PDF Attempt Test
Download PDF Attempt this Test
Most Upvoted Answer
What is the fundamental economic concept that involves the transfer of...
The concept of exchange is fundamental to economics, involving the transfer of goods and services between parties. Exchange can occur through monetary transactions or barter, where goods are traded directly without the use of money. In an exchange-based economy, individuals and businesses trade goods and services to satisfy their needs and wants.
Free Test
FREE
Start Free Test
Start Free Test
Community Answer
What is the fundamental economic concept that involves the transfer of...
The fundamental economic concept that involves the transfer of goods and services through either a monetary system or barter system is **Exchange**.
**Exchange**:
- Exchange is the process through which goods and services are transferred between individuals, businesses, or countries.
- In an exchange, two parties agree to trade items of value, whether it be through money or direct bartering.
- Money serves as a medium of exchange in modern economies, making transactions more efficient and allowing for a wider range of goods and services to be exchanged.
- Bartering, on the other hand, involves the direct exchange of goods and services without the use of money.
- Both monetary and barter systems play a crucial role in facilitating exchange and enabling economic activity to take place.
In conclusion, exchange is the foundation of economic activity as it allows for the transfer of goods and services between parties, whether it be through a monetary system or barter system. This concept is essential in understanding how economies function and how resources are allocated efficiently.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
< Previous Question Next Question >
Explore Courses for Commerce exam

Similar Commerce Doubts

Read the following passage and answer on the basis of the same :The subject-matter of economics is divided into two major branches—Microeconomics and Macroeconomics. Microeconomics studies the economic behaviour of individual economic units and individual economic variables, whereas macroeconomics deals with the functioning of the economy as a whole. Macroeconomics dealswith the broad economic aggregates or bigger issues, such as full employment, unemployment, full capacity, under capacity production, inflation or deflation, etc. Macroeconomics is concerned with the theory of national income, employment, aggregate consumption, savings and investment, general price level, economic growth, etc. Whereas, microeconomics is concerned with the theory of product pricing, factor pricing and consumer behaviour, etc.Positive economics is the branch of economics that concerns the description and explanation of economic phenomena. It focuses on facts and cause and effect behavioural relationships and includes the development and testing of economic theories. Positive economics is objective and facts based. Whereas normative economics is a part of economics that expresses value or normative judgments about economic fairness or what the outcome of the economy or goals of public policy ought to be. Normative economics is subjective and value based.For example, the statement, “government-provided healthcare increases public expenditures” is a positive economic statement and the statement, “government should provide basic healthcare to all citizens” is a normative economic statement.Q. Macroeconomics is concerned with the theory of national income, employment, aggregate consumption, savings and investment, general price level, economic growth.

Read the following passage and answer on the basis of the same : The subject-matter of economics is divided into two major branches—Microeconomics and Macroeconomics. Microeconomics studies the economic behaviour of individual economic units and individual economic variables, whereas macroeconomics deals with the functioning of the economy as a whole. Macroeconomics dealswith the broad economic aggregates or bigger issues, such as full employment, unemployment, full capacity, under capacity production, inflation or deflation, etc. Macroeconomics is concerned with the theory of national income, employment, aggregate consumption, savings and investment, general price level, economic growth, etc. Whereas, microeconomics is concerned with the theory of product pricing, factor pricing and consumer behaviour, etc.Positive economics is the branch of economics that concerns the description and explanation of economic phenomena. It focuses on facts and cause and effect behavioural relationships and includes the development and testing of economic theories. Positive economics is objective and facts based. Whereas normative economics is a part of economics that expresses value or normative judgments about economic fairness or what the outcome of the economy or goals of public policy ought to be. Normative economics is subjective and value based.For example, the statement, “government-provided healthcare increases public expenditures” is a positive economic statement and the statement, “government should provide basic healthcare to all citizens” is a normative economic statement.Assertion (

Read the following passage and answer on the basis of the same : The subject-matter of economics is divided into two major branches—Microeconomics and Macroeconomics. Microeconomics studies the economic behaviour of individual economic units and individual economic variables, whereas macroeconomics deals with the functioning of the economy as a whole. Macroeconomics dealswith the broad economic aggregates or bigger issues, such as full employment, unemployment, full capacity, under capacity production, inflation or deflation, etc. Macroeconomics is concerned with the theory of national income, employment, aggregate consumption, savings and investment, general price level, economic growth, etc. Whereas, microeconomics is concerned with the theory of product pricing, factor pricing and consumer behaviour, etc.Positive economics is the branch of economics that concerns the description and explanation of economic phenomena. It focuses on facts and cause and effect behavioural relationships and includes the development and testing of economic theories. Positive economics is objective and facts based. Whereas normative economics is a part of economics that expresses value or normative judgments about economic fairness or what the outcome of the economy or goals of public policy ought to be. Normative economics is subjective and value based.For example, the statement, “government-provided healthcare increases public expenditures” is a positive economic statement and the statement, “government should provide basic healthcare to all citizens” is a normative economic statement.Q. What do you mean by Positive Economics?

Read the following passage and answer on the basis of the same : The subject-matter of economics is divided into two major branches—Microeconomics and Macroeconomics. Microeconomics studies the economic behaviour of individual economic units and individual economic variables, whereas macroeconomics deals with the functioning of the economy as a whole. Macroeconomics dealswith the broad economic aggregates or bigger issues, such as full employment, unemployment, full capacity, under capacity production, inflation or deflation, etc. Macroeconomics is concerned with the theory of national income, employment, aggregate consumption, savings and investment, general price level, economic growth, etc. Whereas, microeconomics is concerned with the theory of product pricing, factor pricing and consumer behaviour, etc.Positive economics is the branch of economics that concerns the description and explanation of economic phenomena. It focuses on facts and cause and effect behavioural relationships and includes the development and testing of economic theories. Positive economics is objective and facts based. Whereas normative economics is a part of economics that expresses value or normative judgments about economic fairness or what the outcome of the economy or goals of public policy ought to be. Normative economics is subjective and value based.For example, the statement, “government-provided healthcare increases public expenditures” is a positive economic statement and the statement, “government should provide basic healthcare to all citizens” is a normative economic statement.Q. .................. studies the economic behaviour of individual economic units and individual economic variables. (Fill up the blank with correct alternativ e)

Top Courses for CommerceView all

Top Courses for Commerce

What is the fundamental economic concept that involves the transfer of goods and services through either a monetary system or barter system?a) Exchangeb) Distributionc) Productiond) ConsumptionCorrect answer is option 'A'. Can you explain this answer?
Question Description
What is the fundamental economic concept that involves the transfer of goods and services through either a monetary system or barter system?a) Exchangeb) Distributionc) Productiond) ConsumptionCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What is the fundamental economic concept that involves the transfer of goods and services through either a monetary system or barter system?a) Exchangeb) Distributionc) Productiond) ConsumptionCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the fundamental economic concept that involves the transfer of goods and services through either a monetary system or barter system?a) Exchangeb) Distributionc) Productiond) ConsumptionCorrect answer is option 'A'. Can you explain this answer?.
Solutions for What is the fundamental economic concept that involves the transfer of goods and services through either a monetary system or barter system?a) Exchangeb) Distributionc) Productiond) ConsumptionCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of What is the fundamental economic concept that involves the transfer of goods and services through either a monetary system or barter system?a) Exchangeb) Distributionc) Productiond) ConsumptionCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of What is the fundamental economic concept that involves the transfer of goods and services through either a monetary system or barter system?a) Exchangeb) Distributionc) Productiond) ConsumptionCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for What is the fundamental economic concept that involves the transfer of goods and services through either a monetary system or barter system?a) Exchangeb) Distributionc) Productiond) ConsumptionCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of What is the fundamental economic concept that involves the transfer of goods and services through either a monetary system or barter system?a) Exchangeb) Distributionc) Productiond) ConsumptionCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice What is the fundamental economic concept that involves the transfer of goods and services through either a monetary system or barter system?a) Exchangeb) Distributionc) Productiond) ConsumptionCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses

Suggested Free Tests

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© EduRev
Education Revolution
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup