ECONOMIC AXIOMS

1.  Man seeks to gratify his desires with the least  amount of exertion.

2.  Man’s desires are unlimited.

3.  Man hoards consciously and systematically.

ECONOMIC DEFINITIONS

POLITICAL ECONOMY:  The science which treats the nature of wealth and the natural laws governing its production and distribution.

WEALTH: Any material thing with exchange value, the result of labor applied on or to land.

MONEY: That kind of wealth which has a constant or nearly constant marginal utility.

CURRENCY: A medium of exchange in the form of money or other wealth, or in the form of redeemable or irredeemable notes.

INCOME: Rent, Wages and/or Interest received in the form of money or other currency.

PRODUCTION: The process of increasing the capacity of wealth to satisfy human desires.

FACTORS OF PRODUCTION

LAND: All the natural universe except man and wealth.

LABOR: All human exertion in the production of wealth.

CAPITAL: Wealth used in production.

DISTRIBUTION: The assignment of ownership in the wealth produced.

AVENUES OF DISTRIBUTION

RENT: The landowner’s share of the wealth produced.

WAGES: The laborer’s share of the wealth produced.

INTEREST: The capitalist’s income which exchanges for a unit of wealth.

LAWS OF DISTRIBUTION

LAW OF RENT: The rent of land is determined by the excess of its produce  over that which the same application can secure from the least productive   land in use.

LAW OF WAGES: Wages depend upon the margin of production. (The most productive land obtainable without the payment of rent).

LAW OF INTEREST: Economic interest depends upon the willingness to exchange wealth for income and/or to exchange income for wealth.

CONSUMPTION: Any use made of wealth which lessens its capacity to satisfy human desire. (The opposite of production).