Macroeconomics

Dominated asset:

An asset that offers an inferior

return compared to another asset in all possible real-

izations of future uncertainty.

Double coincidence of wants:

A situation in

which two individuals each have precisely the good

that the other wants.

Economic profit:

The amount of revenue remain-

ing for the owners of a firm after all the factors of

production have been compensated. (Cf. accounting

profit, profit.)

Efficiency of labor:

A variable in the Solow

growth model that measures the health, education,

skills, and knowledge of the labor force.

Efficiency units of labor:

A measure of the labor

force that incorporates both the number of workers

and the efficiency of each worker.

G L O S S A R Y

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