JAMB 2022 Economics · Question 80

If a housewife has meat and wants tomatoes, she must find someone who has tomatoes to give and wants meat. This concept is described as

Options

  1. A.scale of preference
  2. B.opportunity cost
  3. C.complementary demand
  4. D.double coincidence of wants

Answer: D. double coincidence of wants

Explanation written with AI and checked against the answer key

Step 1: Analyze the question A housewife has meat and wants tomatoes. To get them, she must find someone who has tomatoes and wants meat. This describes a trade without money, where goods are exchanged directly for other goods.

Step 2: Explain the concept This is barter trade. Its main problem is the need for a double coincidence of wants. This means two people must each have what the other wants, at the same time, before a trade can happen. It is one of the key reasons money was introduced as a medium of exchange.

Step 3: Check each option

  • A. Scale of preference: This is a list of a person's wants arranged in order of importance. It has nothing to do with finding a trading partner.
  • B. Opportunity cost: This is the next best alternative given up when a choice is made. It does not apply here.
  • C. Complementary demand: This is demand for goods used together, such as bread and butter, or cars and fuel. Meat and tomatoes are not being treated this way here.
  • D. Double coincidence of wants: This fits exactly. She has meat and wants tomatoes, while the other person has tomatoes and wants meat.

Step 4: Answer The correct option is D. Double coincidence of wants.

Exam tip: Whenever you see "barter," "exchange without money," or "I have X and want Y, so I must find someone who has Y and wants X," think double coincidence of wants. It is a classic JAMB and WASSCE point about the weakness of barter and the need for money.

AI can make mistakes. Report anything that looks wrong.

Past questions © the examination body (JAMB/WAEC/NECO). DeeepSolve is not affiliated with them. Rights holders: see /copyright.