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In Chapter 1, we defined economic actors, or economic agents, as people or organizations engaged in any of the four essential economic activities: production, distribution, consumption, and resource maintenance. Economic actors can be individuals, small groups (such as a family or a group of roommates), or large organizations such as a government agency or a multinational corporation. Economics is about how these actors behave and interact as they engage in economic activities. In this chapter we explore the behavior of individual economic actors-people. We look at contemporary research on this topic, and, where it seems relevant, compare this with older approaches.
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