QUESTIONS ON THE TEXT

1. Explain clearly the relation between the division of labor and
exchange.

2. To what extent is exchange dependent upon transportation and
communication?

3. Name three types of coördinators, and distinguish between them.

4. Illustrate the functions of the middleman with reference to the
shoe industry.

5. Where there exist in a community more middlemen than are really
needed, what double loss results?

6. What is barter?

7. Why is barter not extensively used in modern industry?

8. Define money.

9. What is the primary function of money?

10. Give an illustration of the service performed by money.

11. Define value. Distinguish between value and price.

12. Upon what two factors is value dependent?