James d. Gwartney

savings account: An account, in a bank or similar financial organization, that earns interest.
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savings plan: Pooled investment account provided by an employer which allows employees to
set aside a portion of their pre-tax wages for retirement savings or other long-term goals, such
as paying for college tuition or purchasing a home. 
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scarcity: Condition in which people would like to have more of a good or resource than is
freely available from nature. Almost everything we value is scarce. 
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secondary effects: Consequences of an economic change that are not immediately identifiable
but are felt only with the passage of time. 
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self-employed: Situation in which an individual works for themselves instead of working for
an employer that pays a salary or a wage. 
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share: A legal instrument giving the holder (the shareholder) the right to vote on actions taken
by the corporation. Each shareholder has a vote equal to the number of shares owned divided
by the total number of shares issued by the corporation. A share is really a share of stock. The
term “stock” is a carry-over from the very first corporation. These were trading companies, and
“stock” literally meant the stock of goods to be traded. 
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shareholder: (also known as stockholder
(?)
) An individual or institution (including a
corporation) that legally owns one or more shares of stock in a public or private corporation.
Each share represents an equal fraction of ownership of the entity. 
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shortage: A condition in which the amount of a good offered for sale by producers is less than
the amount demanded by buyers because government has imposed a below-equilibrium price.
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shortsightedness effect: Misallocation of resources that results because public sector action is
biased (1) in favor of proposals yielding clearly defined current benefits in exchange for
difficult-to-identify future costs; and (2) against proposals with clearly identified current costs
but yielding less concrete and less obvious future benefits. 
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