Hey, I had a question for you the other day. What if Robinson Crusoe was shipwreck and left alone in an island without access to anything from society ... except for today's Internet? (Being able to just read it and not able to communicate with anyone)
How would economics work in that case?
That's when economic concepts become incredibly clear. Analysing Crusoe's situation is the ideal starting point for many economic concepts and principles.
Crusoe will always act. To act means to aim at ends and use scarce means to achieve those ends.
Every action will involve preferences, costs, satisfaction and dissatisfaction, choice, etc.
And economics is essentially a study of human action
I'll let Robert Murphy elaborate further here:
