Long ago, people didn’t use money, they traded things directly. If you had a cow and wanted bread, you might trade your cow for some bread. This is called bartering. But if someone only had a chicken and no one wanted a chicken, it was hard to find something to trade. So ancient people came up with special items like shells or salt that almost everyone wanted, these became early forms of money.
Examples
- A fisherman traded fish for bread because he wanted food.
- Someone used shells as money when they bought tools from another person.
- A farmer gave grain to a blacksmith who made him a plow.
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See also
- Why Do We Have Different Kinds of Taxes?
- Why Do Prices Change So Much?
- Why Do We Use Money Instead of Bartering?
- Why Do Prices Go Up So Much When There's a Shortage?
- Why Do We Have Different Kinds of Coins?
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Categories: Economics · barter system,ancient economics,value determination