Card 14 / 25: Does economics assume that people act in isolation from the rest of society?
Answer:
No, the point of studying Robinson Crusoe is simply to keep the analysis as simple as possible for the student. In the next part of the book, we will explain the operation of a market economy, which is composed of many people. However, the same principles that apply to Crusoe also apply to individuals in a market—the presence of other people is simply another feature of the environment, as it were.
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