Terminology

Economists use many specialised terms and jargon. Unfortunately, difference branches of economics, accounting, tax law and politics use particular terms very loosely, often using several different definitions for the same term, even in one article.

For the development of this simulation software, the terminology of science and of classical economics is used.

• Land is everything in nature, except people and the things which people have produced.
• Labour is the activity of people when directed purposefully in the creation or acquisition of wealth.
• Capital comprises things which have been produced by people which are intended to be used in the creation or acquisition of wealth.
• Wealth comprises things which directly meet a human need or desire.
• Money is the thing most commonly used in voluntary exchange.

Finding precise definitions is difficult, but without sharing common terminology, confusion is certain.