Answer:
The advantage of direct exchange is that it allows people to make mutually beneficial trades, so that each person winds up better off. The limitation is that a person looking to make a trade needs to find someone else who desires what the first person is offering, and who also has what the first person wants. This requirement prevents many beneficial trades that involve more than two people. Sample Partial Credit Answer The problem with direct exchange is that a dentist who is hungry has to find a farmer who has a toothache.