Economics, 3rd Edition

investment fund 

an institution that sells shares to the public 

and uses the proceeds to buy a portfolio of stocks and bonds

isocost line 

a line showing the different combination of factor 

inputs which can be purchased with a given budget

job search 

the process by which workers find appropriate jobs 

given their tastes and skills

labour 

the human effort both mental and physical that goes in to 

production

labour force 

the total number of workers, including both the 

employed and the unemployed

labour force participation rate (or economic activity 

rate) 

the percentage of the adult population that is in the 

labour force

Laffer curve 

the relationship between tax rates and tax revenue

lagging indicator 

an indicator which occurs after changes in 

economic activity have occurred

land 

all the natural resources of the earth

law of demand 

the claim that, other things equal (ceteris 

paribus) the quantity demanded of a good falls when the price 

of the good rises

law of supply 

the claim that, ceteris paribus, the quantity 

supplied of a good rises when the price of a good rises