SACE Stage 2 Economics 2026 – 400 Free Practice Questions to Pass the Exam

The concept of directly trading goods and services without the use of money is aptly described as a non-cash exchange. This refers to barter systems where individuals or entities exchange one product or service for another based on mutual agreement of value, eliminating the need for currency. This system relies heavily on the double coincidence of wants, where each party must have what the other desires for the transaction to take place.

In contrast, a market economy refers to an economic system where decisions regarding investment, production, and distribution are guided by the interactions of citizens and businesses in the marketplace, predominantly involving the use of money. Profit pertains to the financial gain resulting from the difference between the amount earned from selling goods/services and the costs incurred in producing them. GDP, or gross domestic product, measures the monetary value of all finished goods and services produced within a country's borders during a specific time period. Each of these terms is related to economic transactions and entities, but they do not capture the essence of direct exchanges of goods and services without money like a non-cash exchange does.