James d. Gwartney

logrolling: The exchange between politicians of political support on one issue for political
support on another. 
loss: The amount by which sales revenue fails to cover the cost of supplying a good or service.
Losses are a penalty imposed on those who use resources to produce less value than they could
have otherwise produced. 
managed equity mutual fund: An equity mutual fund that has a portfolio manager who
decides what stocks will be held in the fund and when they will be bought or sold. A research
staff generally provides support for the fund managermarginal: A term used to describe the effects of a change in the current situation. For
example, the marginal cost is the cost of producing an additional unit of a product, given the
producer’s current facility and production rate. 

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marginal benefit: The change in total value or benefit derived from an action such as
consumption of an additional unit of a good or service. It reflects the maximum amount that
the individual considering the action would be willing to pay for it. 
↩ 
marginal cost: The change in total cost resulting from an action such as the production of an
additional unit of output. 
↩ 
marginal tax rate: The percentage of an extra dollar of income that must be paid in taxes. It is
the marginal tax rate that is relevant in personal decision-making. 
↩ 
market: An abstract concept that encompasses the trading arrangements of buyers and sellers
which underlie the forces of supply and demand. 
↩ 
market economy: An economic system in which economic decisions and the pricing of goods
and services are guided solely by the aggregate interactions of a country’s individual citizens
and businesses. There is little government intervention or central planning. 
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