Robinson Crusoe economy

A Robinson Crusoe economy refers to a simplified economic model where only one individual, like Crusoe himself, interacts with the environment to produce goods, consume, and make decisions. It illustrates basic economic concepts such as resource management, production, and trade in a setting with no other people involved. This model helps analyze how a single person allocates their time and resources efficiently, considering factors like productivity, consumption, and savings, providing foundational insights into individual decision-making and economic principles without the complexities of multiple agents.