Could production and consumption take place without money?

Hello. Please help with me understanding the answer to this question. Could production and consumption take place without money? how?

Reply 1

alex_hk90

Production and consumption can (and probably did) take place without money.
Exchange of products for the purpose of personal consumption could happen by barter, for example.

Was the question from an exam paper?
If so, how many marks was it worth?

Reply 2

Dream1

The question was from an economics book by John Sloman, which doesn't have any answers to the questions, but thanks to you it is now clear to me.

Reply 3

dans

Yes. Money is only really seen as a means to an end. For example, if I had some bread, and that's all that I had. I would be getting fairly sick of eating bread day in, and day out. You happen to have some butter, but no bread. That is useless to you without any bread or whatever. Therefore, we could trade some of my bread for some of your butter and no money would need to exchange hands. However, if I decided that the bread was more valuable than the butter that you're proposing to put on it, then I could refuse to trade. This is when money comes into it. Only when one party values their product higher than the proposed trade product does money become involved. The reason behind this is to make up the deficit.

Your question about production. Farmers produce food for themselves without being paid for the food that they take for themselves. This is production without being paid for it in cash. They are being paid for it in goods. For example, in the building trade, very little money changes hands when builders do private building work for other builders. This is because money is taxed etc. A plasterer may plaster a few walls and ceilings for a plumber, and then in return the plumber will plumb in a bathroom for the plasterer. Get it?