Lack of divisibility is a problem of ______ system of exchange.

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KollegeApply · Accepted Answer

Lack of divisibility is a problem of barter system of exchange. Explanation: The problem of lack of divisibility arises in the barter system of exchange because in barter, goods are exchanged directly for other goods without a common medium. Many goods are indivisible or difficult to divide into smaller units for exchange purposes. This makes barter inefficient when the exchange involves goods of unequal value or when divisibility is required to facilitate trade. Money, on the other hand, solves this problem as it is divisible into smaller units, enabling easier transactions. Hence, lack of divisibility is mainly a problem of the barter system of exchange.

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