Absolute (Money) Price

National Income Total income earned
by U.S. citizens and businesses, no matter
where they reside or are located; the sum
of the payments to resources (land, labor,
capital, and entrepreneurship): National
income 5 Compensation of employees 1
Proprietors’ income 1 Corporate profits 1
Rental income of persons 1 Net interest.
Natural Monopoly The condition where
economies of scale are so pronounced that
only one firm can survive.
Natural Real GDP The Real GDP that is
produced at the natural unemployment rate.
The Real GDP that is produced when the
economy is in long-run equilibrium.
Natural Unemployment Unemployment
caused by frictional and structural factors
in the economy: Natural unemployment
rate 5 Frictional unemployment rate 1
Structural unemployment rate.
Negative Externality The condition
when a person’s or group’s actions impose a
cost (an adverse side effect) on others.
Net Domestic Product (NDP) GDP
minus the capital consumption allowance.
Net Exports Exports minus imports.
Network Good A good whose value
increases as the expected number of units
sold increases.
Net Worth (or Capital) The difference
between assets and liabilities. For example,
if assets are $100 and liabilities are $80, net
worth, or capital, is $20.