ABSTRACT
In classical and neoclassical economic theory, markets are at the center of the
stage. The actors in these markets are workers and consumers (sometimes com-
bined into households), firms, owners of resources, governments, and perhaps
others. The economic world of the neoclassical textbooks is a world of transac-
tions, and these transactions typically involve an exchange of goods, services,
and/or money that both parties to the transaction find advantageous to achieve
these goals. Along with consumption, work and leisure are important compo-
nents of the utility functions of households. Often, profit is assumed to be the
sole objective of firms and their owners.
