Question 14 / 96:
Suppose a farmer trades the metalsmith 10 pigs to obtain an axe thatthe farmer will use to chop down trees. The metalsmith intends to keep
the pigs and eventually eat them. Is this a direct or indirect exchange?
Explain your answer.
A direct exchange occurs when both parties intend to personally
use the item received, either for consumption or production. Since
the farmer wants to use the axe to cut down trees, and the metalsmith
wants to eat the pigs, this qualifies as a direct exchange.
Sample Partial Credit Answer
This is a direct exchange because the metalsmith eats the pigs,
rather than selling the bacon to others.
