Absolute (Money) Price

Neutral Good A good for which demand
does not change as income rises or falls.
Nominal Income The current dollar
amount of a person’s income.
Nominal Interest Rate The interest rate
actually charged (or paid) in the market; the
market interest rate: Nominal interest rate 5
Real interest rate 1 Expected inflation rate.
The interest rate determined by the forces
of supply and demand in the loanable funds
market.
Nonactivists Persons who argue against
the deliberate use of discretionary fiscal
and monetary policies. They believe in a
permanent, stable, rule-oriented monetary
and fiscal framework.
Nonexcludable A characteristic of a good
whereby it is impossible, or prohibitively
costly, to exclude someone from receiving its
benefits after it has been produced.
Nonrivalrous in Consumption A good
whose consumption does not reduce its
consumption by others.
Normal Good A good for which demand
rises (falls) as income rises (falls).
Normal Profit Zero economic profit. A
firm that earns normal profit is earning
revenue equal to its total costs (explicit plus
implicit costs). This is the level of profit
necessary to keep resources employed in the
firm.
Normative Economics The study of
“what should be” in economics.
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Offshoring Work done for a company by
persons other than the original company’s
employees in a country other than the
company’s home country.
Oligopoly A theory of market structure
based on three assumptions: few sellers
and many buyers, firms producing either
homogeneous or differentiated products,
and significant barriers to entry.