ECON 2720 Lecture 8: Lecture 8 - ECON
7 Feb 2017
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2:38 pm: international trade facilitated by the use of coin. Notion that the value of money is the precious metal content. Peasant farmer produces a surplus of turnips. Does or does not find somebody who is prepared to swap something for his turnips. If he can"t sell his turnips and has only grown one crop, they are going to starve. Cannot take risk on specializing in order to not have surplus of one commodity. Have everything your family needs to survive. Won"t come along until after there is a market. One person has to take a risk to create a market infrastructure. E. g. fishers using cell phones to see how much fish is selling for in other markets. Cell phone tower would be a market infrastructure. Travelling merchant would be a market infrastructure. England"s most valuable product and major export. Small producers: adam smith (first modern economist) Wool, many workmen needed to created textiles.
