Economic Agency

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Economic Agency

A person or unit's ability to use land, labor or capital. Economic agency renders one able to help shape an economy. For example, a person with $5 in his pocket has the economic agency to decide whether to buy a beer from Arnie's or McNellie's. Likewise, a farmer with a piece of land has the ability to decide whether to grow corn or beans. Most analysts believe the agency of numerous economic actors decides how successful (or unsuccessful) an economy is. Followers of determinism, on the other hand, dispute this.

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