Question

​Marcel and Charles are neighbors. Marcel owns a boat but never uses it. Charles owns a car that he no longer needs since his son left for college in another state. Marcel needs a car. Marcel and Charles make an agreement to trade the boat for car. What is the economic term given to this kind of exchange?

Answer 1

Barter

Step-by-step explanation:

Barter system is a kind of trade system of exchange in which the participles involving in the transaction directly exchange the services or the goods for other services or goods without the usage of medium of the exchange such as money.

​Marcel and Charles are involving in barter system in which former exchanges the boat with the car of the latter.