Need help for my economics final?

Question

Penny is an artist, and John is a carpenter. Penny agrees to paint a portrait of John’s family in exchange for a handmade table created by John. How did Penny and John pay for the goods in their transaction?

I think it has to do with representative money or commodity money, or barter....I'm not sure. Any help is appreciated.

Answer 1

I suppose you are doing monetary economics :) and you are right! It is bilateral barter trade since both parties experience pareto improvement by trading. Hope that answers your question :)