James d. Gwartney

invisible hand: The tendency of market prices to direct individuals pursuing their own self-
interest into activities that promote the economic well-being of the society“junk” bonds: High-risk bonds, usually issued by less-than-well-established firms, that pay
high interest rates because of their risk. 
labor force: The labor force is the sum of persons in employment plus persons in
unemployment. Together these two groups of the population represent the current supply of
labor. 
labor market: Also known as the job market, this refers to the supply and demand for labor in
which employees provide the supply and employers the demand. Workers and employers
interact with each other—employers compete to hire the best, and the workers compete for the
law of comparative advantage: A principle that reveals how individuals, firms, regions, or
nations can produce a larger output and achieve mutual gains from trade. Under this principle
each specializes in the production of goods that it can produce cheaply (that is, at a low
opportunity cost) and exchanges these goods for others that are produced at a high opportunity
law of demand: A principle that states there is an inverse relationship between the price of an
item and the quantity of it which buyers are willing to purchase when other things are held
constant. As the price of an item increases, consumers purchase less of it. As price decreases,

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law of supply: A principle that states there is a positive relationship between the price of an
item and the quantity of it which producers are willing to supply when other things are held
constant. As the price of an item increases, producers will supply more. As price decreases,
they will supply less. 
less-developed countries: Countries with low per capita incomes, low levels of education,
widespread illiteracy, and widespread use of production methods that are largely obsolete in
lobbyist: LOBBY (verb) To “lobby” in a political context is to argue for lawmakers to adopt
rules or laws that benefit a particular financial or other interest. (noun) A “lobby” is a group of
people seeking to influence politicians or public officials on a particular issue. An individual
member of such a group is called a “lobbyist.” The term originates because lobbyists often
approached lawmakers in the vestibules or lobby of legislative buildings.