Economics, 3rd Edition

natural rate of unemployment 

the normal rate of 

unemployment around which the unemployment rate fluctuates

natural resources 

the inputs into the production of goods and 

services that are provided by nature, such as land, rivers and 

mineral deposits

negative externality 

the costs imposed on a third party of a 

decision

negative income tax 

a tax system that collects revenue from 

high-income households and gives transfers to low-income 

households

net capital outflow 

the purchase of foreign assets by 

domestic residents minus the purchase of domestic assets by 

foreigners

net exports 

spending on domestically produced goods by 

foreigners (exports) minus spending on foreign goods by 

domestic residents (imports) 

net investment 

spending on the capital stock taking into 

account spending on depreciation of the existing capital stock

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