ABSTRACT
Theorization in economics is about real-concrete systems, processes, or phenomena, which must be identified before any idealized model of the same is built. Econometricians call these real concrete entities ‘data generation processes’, and use this term in order to designate the phenomenon of interest which a theory purports to explain. Even in primitive and undifferentiated societies human life manifests in activities – actions – of different kinds: familiar, ecclesiastical, agricultural, educational, artisanal, political, artistic, and so on. Human activities are carried out in economics units, which can be production units or households, being the case that there may be overlapping among these. A cycle of an economic system involves choices in the bosom of each economic unit. In private ownership economies, the owner of the production means is also the owner of the products emanating from the production processes that he operates.
