The total amount owed by the national government to those from whom it has borrowed to finance the accumulated difference between annual budget deficits and annual budget surpluses; also called public debt.
An industry in which the advantages of large-scale production make it possible for a single firm to produce the entire output of the market at a lower average cost than a number of firms each producing a smaller quantity.
“Gifts of nature” used to produce goods and services; examples include land, oceans, air, trees, mineral deposits, soil fertility, and climatic conditions.
A negative side effect that results when the production or consumption of a good or service affects the welfare of people who are not the parties directly involved in a market exchange. Sometimes referred to as "third-party cost" or "spillover cost," it is a cost imposed on third parties by the production or consumption of other parties.
Exports minus imports.
The amount of money a person receives within a pay period after taxes and other deductions are taken out of his or her paycheck.
The current value of a person’s assets minus liabilities.
New Classical Theory
A school of thought that holds that people's expectations are important and therefore government policies will have a limited effect on the business cycle since individuals and firms will take government policies into account when making decisions. Changes in real national income are a product of unexpected changes in the level of prices.
New York Stock Exchange (NYSE)
The oldest stock exchange in the United States, founded in 1792.
Nominal Gross Domestic Product (GDP)
The total market value, measured in current prices, of all final goods and services produced in a nation during a given period of time, usually one year.
Competition by firms trying to attract customers by methods other than reducing prices; examples include advertising and promotional gifts.
Non-price determinants can be interactions that do not affect the price of the wide range of supply and demand factors.
A property of certain goods and services such that (once the goods or services are provided) they cannot be denied to or withheld from people who have not paid for the goods or services; examples include street lights and national defense.
An organization that is exempt from federal (and sometimes state) taxes; receives income from donors, subsidized beneficiaries and, indirectly, taxpayers; and therefore should provide its goods or services free or below cost.