James d. Gwartney

exports: Goods and services produced domestically but sold to foreign purchasers. 
externalities: Spillover effects of an activity that influence the well-being of nonconsenting
external parties. If the spillover effects are positive, they are also called external benefits. If the
spillover effects adversely impact external parties, they are also called external costs. 
favoritism: Unfair support shown to one person or group, especially by someone in authority.
financial asset: Assets such as money, shares, bonds, etc. rather than a physical asset such as
property or machinery. 
financial institution: A company that provides financial services, such as stock exchanges,

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banks, insurance companies, mutual funds, and investment firms. 
foreclosure rate: The percentage of home mortgages on which the lender has started the
process of taking ownership of the property because the borrower has failed to make the
monthly payments. 
foreign investment: When a company or individual from another nation invests in assets or
ownership stakes of a company in your country. 
free trade: The ability of people to undertake economic transactions with people in other
government bond: A debt security issued by a government to support government spending.
Federal government bonds in the United States include savings bonds, Treasury bonds, and
Tgovernment enterprise: A legal entity that is created by a government in order to partake in
commercial activities on the government’s behalf. 
government failure: A situation in which the structure of incentives is such that the political
process, including democratic political decision-making, will encourage individuals to
undertake actions that conflict with economic efficiency. 
government regulation: Rules (imposed by the government) which control the way that a