[Rate Essay] Some people pay money for the things they need. Other people trade goods

[powerslave]

Topic : Some people pay money for the things they want or need. Other people trade products or goods for what they need. Compare the advantages of these two ways of obtaining things. Which way do you prefer? Explain why.

 

 

 

Essay:

 

 

Out of the two ways mentioned for obtaining things we need, I would prefer paying money for the things I need to trade products or goods for the things I need. This is a simple choice given that things we want to trade may not have the universal appeal of money, nine times out of ten. For example, assume I have an apple to offer to a friend. In exchange, I expect a notebook. But my friend does not want an apple as he already has other things to eat. On the other hand, if I were to offer him some money, he could always use it for buying things that he needs. In short, money has a universal appeal.

 

One very obvious and very important function served by using money is that money enables fair exchange rate during trade. That is, one cannot unambiguously decide what one object is worth in terms of the other. For example, it is difficult to decide whether one apple is equal to two bananas or one. Thus it is very easy to express the worth of a thing in money. Moreover, dividing money is easier than dividing things. Say, a person wants to sell his cow, but he feels one goat in exchange is too high and two goats is too low a price. Here money could be easily divided, but a goat, or most things in general, cannot be. Again, things do not hold a fixed price, but money does. A person in New York may sell his cows for fifteen dollars apiece, but the same cow could be sold at 16 dollars apiece in New Jersey. Using money can solve this ambiguity.

 

The third and the simplest reason for using money to trade is the fact that money can be easily stored, transported, exchanged, hidden, carried and protected. Consider a shepherd who sold his sheep in exchange for chicken. It may become a little tedious for the shepherd to keep track of his remaining sheep and the chicken he's "earned". On the other hand if he were to sell his sheep for money, he could carry his money with him safely and securely in his pocket, far from the worries of him losing any of it, as opposed to the chicken.

 

So it's a simple choice between using money to trade as opposed to using things to trade. Money it is.

 

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Hey guys, this was what I got as a question in power prep test2. I was semi-serious while writing the essay. I would like to know what you guys think and how much would you rate it ? :)