Thursday, August 01, 2013

Defining And Refining Macroeconomic Terminology.

Active Entrepreneurship: A state of alertness where opportunities are easily discerned to be acted upon.

Capital: The financial resources which are necessary for the production of most current goods and all future goods.

Disequilibrium: The real economic condition that exists in the world because of uncertainty and imperfect knowledge.

Disutility of Labor: Of the three qualities of the human reality — physical, intellectual, and spiritual — humans least prefer to occupy themselves with physical labor.

Divine Economy: The equilibrium force that is at the center of the divine institution — the economy — that has been bestowed upon humankind by God.

Divine Economy Model: A subjectivist model that describes the economy in the following terms: human spirit, transformation, law, order, purposeful action, capital structure, market, property rights, justice, and unity.

Divine Economy Theory: The theory that uses the subjectivist methodology to explore how the human identity of being created in the ‘image of God’ helps us to understand how the economy works.

Division of labor: Since every human being is unique, as they pursue their goals there is the potential that they will make a unique contribution to production.

Empiricism: The use of data rather than theory to explain things.

Equilibrium: The tendency towards balance and harmony.

Ever-advancing civilization: Humans, individually and as a whole, always aspire towards and potentially achieve greater perfections.

Hampered Economy: This is an economy where acts of intervention interfere with the equilibrium forces.

Human Operating System: All of the inherent human faculties that serve as the means to fulfill our human purpose, which ultimately is to know and love God.

Inflation: Artificial expansion of the money supply.

Intervention: Imposition of finite human acts of control onto an infinite and divine system.

Laissez-faire: An economic philosophy based on the insight that the economy works best when there is no intervention.

Latent Entrepreneurship: A state of potential unachieved due to discernment dormancy.

Leisure: The desire to satisfy one’s highest valued physical, intellectual, or spiritual aspiration instead of working.

Macroeconomy: A term used to indicate that aggregate indicators in the economy are being looked at.

Market: The place and process where information flows between and among participants.

Market Process: A natural and universal process that functions like a language does to facilitate the making of exchanges.

Production Possibilities Frontier: A macroeconomic tool using two opposing aggregates to explain the limits of production.

Purchasing Power: A measure of the value of the medium of exchange in terms of the goods that can be purchased per unit of money.

Savings: The portion of income set aside for future consumption.

Secession: The right to leave a jurisdictional arrangement in a contractual society.

Standard of Living: An aggregate reference point assessing the degree of well-being and prosperity in relative terms.

Subjectivism: The scientific approach that recognizes that humans act subjectively, and this then leads to realistic and relevant scientific discoveries.

Taxation: Coercive extraction of wealth by government.

Time Preference: The universal law of human action that states that people prefer to have a good now rather than that same good sometime in the future.

Unhampered Economy: A synonym for a laissez-faire economy and a free market economy. It is also the condition that exists in a divine economy.

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