ABSTRACT

One of the goals of the peasant economy is to satisfy the needs of the producer-consumer; decisions in the course of action serve to focus on the individual's need and to readjust productive activities so as to achieve that particular goal. The existence of an economic system can be postulated, if people assume that producing and consuming units behave rationally and in accordance with certain rules. The most important rule is that they consciously maximize the output of goods which satisfy their needs. Interdependence and maximizing behaviour are the factors that bring the population of producers and consumers into a series of equilibrium relationships. Decisions are postponed until expectations can be formulated, when the potential surprise of an outcome is determined and the choice is made. The need for action, however, may overtake the decision-maker. In such circumstances he focuses his attention on other elements which are easier to evaluate.