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Agrarian Economy

Definition

An agrarian economy is one in which the primary industry is agriculture, including farming and raising livestock.

Analogy

Think of an agrarian economy as a school lunch where everyone brings their own food from home. Most people are producing (or in this case, packing) what they consume.

Related terms

Subsistence Farming: This type of farming involves growing just enough food to feed the farmer's family with little left over for trade. It’s like cooking dinner just for your family without leftovers.

Barter System: This is a method of exchange where goods or services are directly exchanged for other goods or services without using money. Imagine trading your sandwich for your friend's chips at lunchtime.

Feudalism: A social system that existed in Europe during the Middle Ages in which people worked and fought for nobles who gave them protection and land in return. Picture it as being part of a sports team where you play hard (work) under your coach (noble), who provides training (protection) and equipment (land).