alleryA tailor needs grain; the farmer needs no clothes. How does money help?
AThe farmer must make clothes
BEach sale needs a bank loan
CThey must swap equal quantities
DEach can sell elsewhere, then buy what they need
Answer & Solution
Correct answer: D. Each can sell elsewhere, then buy what they need
Money acts as an intermediate medium, removing the need for the tailor and farmer to want each other’s goods simultaneously.
Keep practising Economics and Public Programmes
Browse all Economics and Public Programmes questions for RPF Constable, or explore more General Awareness topics.
Related questions
Everyday economicsWheat ₹400 → flour ₹700 → bread ₹1,000, with no other inputs. Total value added; baker’s vA streetlight serves people together; excluding non-payers is impractical. Why a public goA government spends ₹95 crore and receives ₹70 crore revenue plus ₹5 crore non-debt capitaFor a ₹10,000 one-year loan, A charges 10% simple interest plus ₹200 fee; B charges 8% pluA government owns a bus service; a privately owned firm owns a factory. Classify them.Five family members farm a plot. Two leave; output is unchanged. What does this suggest?A farmer grows cotton, a mill turns it into cloth and a driver transports the cloth. What