James d. Gwartney

mortgage default rate: The percentage of home mortgages on which the borrower is ninety
days or more late with the payments on the loan or it is in the foreclosure process. This rate is
sometimes referred to as the serious delinquency rate. 
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mutual fund: An entity that pools the funds of investors and channels them into various
categories of investments. There are a variety of mutual funds, including equity funds, bond
funds, real estate funds, and money-market funds. 
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national debt: The sum of the indebtedness of a government in the form of outstanding
interest-earning bonds. It reflects the cumulative impact of budget deficits and surpluses. 
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national income: The total income earned by the citizens of a country during a specific period.
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nominal return: The return on an asset in monetary terms. Unlike the real return, it makes no
allowance for changes in the general level of prices (inflation). 
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occupational licensing: A requirement that a person obtain permission from the government
in order to perform certain business activities or work in certain occupations. 
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open markets: Markets that suppliers can enter without obtaining permission from
governmental authorities. 
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opportunity costs: The highest valued alternative good or activity that must be sacrificed as a
result of choosing an option. 
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output: An amount of something produced by a person, machine, factory, country, etc. 
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Patient Protection and Affordable Care Act (PPACA): More commonly referred to as the
Affordable Care Act or Obamacare, this is the landmark health reform legislation signed into
law by President Barack Obama in 2010. 
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personal income: The total income received by domestic households and non-corporate
businesses. 
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