Which of the following is a downside of barter?

Barter systems operate on the direct exchange of goods and services without the use of money. One of the significant downsides of barter is that it creates uncertainty in purchasing power, which pertains to the value assigned to goods and services in the exchange. Unlike monetary transactions, which utilize a uniform medium of exchange and provide pricing stability, barter relies on the subjective valuation of items. This can lead to discrepancies in perceived worth between parties, making it challenging to establish an equitable exchange.

For instance, if someone values a service highly, they may be unwilling to trade it for goods they feel are worth much less, resulting in potential disagreements or conflicts. This lack of a standardized value system can complicate trades and lead to inefficiencies. Hence, the uncertainty in purchasing power is a prominent drawback, as it could result in loss of value or dissatisfaction for one or both parties involved.