List of Key Terms

100% reserve banking system

Absolute advantage

Absolute surplus value

Abstract, social labor

Accounting profit

Actual budget

Actual investment

Actual money holdings

After-tax consumption function

Aggregate demand (AD) curve

Aggregate expenditures model

Aggregate production function

Aggregate profits (П)

Aggregate supply (AS) curve

Aggregate wage (W)

Allocation mechanisms

Allocative efficiency

Animal spirits

Annual mass of surplus value

Annual rate of profit

Annual rate of surplus value

Annual value of labor-power


Appropriated programs (discretionary programs)


Arc elasticity

Asset demand for money

Asset price bubbles


Austerity measures

Austrian definition of the money supply (Ma)


Automatic stabilizers

Autonomous consumption

Autonomous saving

Average cost pricing

Average fixed cost (AFC)

Average product (AP)

Average profit

Average resource cost (ARC)

Average revenue (AR)

Average revenue product (ARP)

Average tax rate

Average total cost (ATC)

Average variable cost (AVC)

Balance of payments accounting

Balance sheet

Balance sheet equation

Balanced budget

Balanced budget amendments

Balanced trade

Bank capital

Bank capitalists

Bank loan capital

Bank operating capital

Bank run

Banker for commercial banks

Banker for the federal government

Barter economies

Best response

Bilateral monopoly


Bond market

Boom-bust policy



Budget deficit

Budget line

Budget set

Budget surplus

Business cycle

Business fixed investment


Capital account

Capital and financial account deficit

Capital and financial account surplus

Capital consumption

Capital gain

Capital loss

Capitalist mode of production

Cardinal utility


Cash reserves

Cash surrender values


Central bank independence

Centralization of capital

Centrally planned allocation

Certificates of deposit (CDs)

Ceteris paribus assumption

Chair of the Federal Reserve Board

Change in demand

Change in quantity demanded

Change in quantity supplied

Change in supply

Civilian non-institutional population

Class exploitation

Cobweb model

Coercive monopoly

Collateralized debt obligations (CDOs)

Command capitalism

Command socialism

Commercial capitalists

Commercial profit


Commodity bundle

Commodity circuit

Commodity money

Commodity space

Communist mode of production

Comparative advantage

Comparative statics analysis


Competitive devaluation


Complete accommodation

Complete crowding out

Complex labor

Compound interest

Concentration of capital

Concrete, private labor

Conflict of interest

Conspicuous consumption

Constant capital (c)

Constant returns to scale (CRS)

Constant-cost industry

Consumer credits

Consumers’ surplus

Consumption function

Contractionary (tight) monetary policy

Contractionary fiscal policy

Convertible paper money

Core of the SSA

Corporate profits

Cost-benefit analysis

Cost function

Cost-push inflation


Coupon bonds

Craft unions


Credit rating agencies

Credit unions

Cross forms

Cross-price elasticity of demand


Currency crisis

Current account

Current Account Balance

Current account deficit

Current account surplus

Cyclical unemployment

Daily value of labor-power

Dead labor (DL)

Dead product (DP)

Deadweight loss


Debt monetization

Decreasing returns to scale (DRS)

Decreasing-cost industry

Deep poverty



Demand for money

Demand-pull inflation

Dependency theory

Dependent variables




Derived demand


Dialectical idealism

Dialectical materialism

Digital currencies

Diminishing marginal benefit of consumption

Diminishing marginal rate of substitution

Diminishing returns to labor

Discount loans

Discount loans (FL)

Discount rate (id)


Discouraged workers


Diseconomies of scale (DOS)


Domestic terms of trade

Dominant equilibrium

Dominant strategy

Double coincidence of wants problem

Double coincidence of wants problem

Duopoly market

Durable goods

Dynamic efficiency

Economic base (or mode of production)

Economic contraction

Economic efficiency

Economic forecasts

Economic growth

Economic models

Economic problem

Economic profit

Economic surplus


Economies of scale (EOS)

Effective money supply (MV)

Effective or binding (price ceilings and price floors)



Endogenous money supply

Endogenous preferences

Endogenous variable

Entitlement programs

Entry point


Equilibrium aggregate profit

Equilibrium bond price

Equilibrium exchange rate

Equilibrium interest rate

Equilibrium quantities exchanged

Equilibrium quantity of bonds

Equilibrium quantity of loanable funds

Excess capacity theorem of monopolistic competition

Excess demand

Excess reserves

Excess supply

Exchange rate regime

Exchange value

Exogenous money supply

Exogenous preferences

Exogenous variable

Expanded form of value

Expansionary (easy) monetary policy

Expansionary fiscal policy


Expenditures approach

Explicit costs



Extra gross wages

Factor markets (input markets or resource markets)

Fallacy of composition

Federal debt

Federal funds market

Federal funds rate

Federal Open Market Committee (FOMC)

Federal Reserve

Federal Reserve Banks (FRBs)

Federal Reserve Board of Governors

Federal Reserve Notes

Federal Reserve open market purchases of securities (FP)

Feudal mode of production

Feudal system

Fiat money

Final capital goods

Financial account

Financial capital

Fiscal policy

Fixed exchange rate regime

Fixed exchange rates

Fixprice markets

Flat tax

Flexible exchange rates

Flexprice markets

Floating exchange rate regime

Flow variable

Flow variable

Forced saving

Foreign currency-denominated assets

Foreign exchange value

Form of property ownership

Four-firm concentration ratio

Fractional reserve banking system

Free in a double sense

Free rider effect

Free trade

Frictional unemployment

Full employment

Full employment balanced budget reference line

Full employment budget

Functional distribution of income

Future value

Game theory

GDP deflator

General annual rate of profit (rA*)

General annual rate of surplus value (eA*)

General equilibrium model

General form of value

General rate of interest (ig)

General rate of profit (p)

General rate of profit (r)

Gini coefficient

Government budget gap

Government expenditures multiplier

Government purchases

Government transfer payments

Great Recession

Gross domestic product (GDP)

Gross National Happiness (GNH)

Gross National Product (GNP)

Gross private domestic investment

Harberger triangle

Hayekian triangle

Herfindahl-Hirschman Index (HHI)

Heterodox economics

Heterogeneous resources

High degree of concentration

High time preference

Homogeneous resources

Horizontal Summation

Hourly value of labor-power

Hybrid forms



Implicit costs

Import quota

Import tariff

Imputed value


Income approach

Income deficit

Income effect

Income elasticity of demand

Income surplus

Income tax brackets

Income/leisure tradeoff

Income-expenditure identity

Inconvertible paper money

Increasing marginal cost of production

Increasing marginal opportunity costs

Increasing returns to labor

Increasing returns to scale (IRS)

Increasing-cost industry

Independent variables

Indifference curve

Indifference map

Individual demands

Individual supplies

Induced consumption

Induced saving

Induced spending

Industrial capitalists

Industrial reserve army of the unemployed

Industrial unions


Inferior goods

Inflation rate


Instruments of labor

Interest income

Interest-bearing capital

Interest-rate effect

Intermediate goods

international substitution effect

International terms of trade

Interpersonal utility comparisons

Inventory investment


Invisible hand

Iron law of retribution

Issuer of currency

Kaldor-Hicks criterion

Keynesian Cross model

Kinked demand curve model of non-collusive oligopoly


Labor force

Labor force participation rate

Labor market demand curve

Labor process



Law of demand

Law of diminishing marginal utility

Law of diminishing returns

Law of increasing opportunity cost

Law of Supply

Law of the tendency of the rate of profit to fall (LTRPF)

Law of value

Lender of last resort


Limited liability

Limits to the terms of trade


Living labor (LL)

Loan losses

Loanable funds market


Lockout phenomenon


Long run

Long run aggregate supply (LRAS) curve

Long run average total cost (LRATC)

Long run industry supply (LRIS)

Long run marginal cost (LRMC)

Lorenz curve

Low time preference

Lump sum tax multiplier



M1 money supply

M2 money supply

M3 money supply

Macroeconomic equilibrium

Mainstream economics

Managed floating exchange rates

Mandatory spending

Marginal benefit (MB)

Marginal cost (MC)

Marginal cost pricing

Marginal opportunity cost

Marginal private benefit (MPB)

Marginal private cost (MPC)

Marginal product (MP)

Marginal productivity theory of income distribution

Marginal propensity to consume (mpc)

Marginal propensity to save (mps)

Marginal rate of substitution (MRS)

Marginal resource cost (MRC)

Marginal revenue (MR)

Marginal revenue product (MRP)

Marginal social benefit (MSB)

Marginal social cost (MSC)

Marginal tax rates

Marginal utility

Marginalist revolution


Market allocation

Market capitalism

Market demand

Market equilibrium

Market exchange rate

Market failure

Market power

Market power spectrum

Market price

Market rate of interest

Market share

Market socialism

Market structure

Market supply


Marxian circular flow model

Marxian monetary theory

Marxian theory of fiat money

Maximum efficient scale

Means of consumption

Median income

Medium of exchange

Menu costs

Merchant capital

Methodological individualism


Minimum efficient scale (MES)


Moderate degree of concentration

Modern monopoly capital

Monetary expression of labor time (MELT)

Monetary policy


Money capitalist SSA

Money form of value

Money market

Money market deposit accounts (MMDAs)

Money market instruments

Money market mutual funds (MMMFs)

Money multiplier

Money stock

Money supply

Money wage (nominal wage)

Moneylending capitalists


Monopolistic Competition

Monopolistic merchant’s capital

Monopoly capital

Monopoly-finance capital


Mortgage-backed securities (MBSs)

Multiple counting

Multiple expansion of bank deposits

Multiplier effect

Mutual causality

Nash equilibrium

National income

National income accounting

National Income and Product Accounts (NIPA)

Natural monopoly

Natural rate of interest

Natural unemployment

Near poverty

Necessary labor (NL)

Necessary product (NP)


Negative returns to labor

Negative time preference

Negatively related variables

Neoclassical circular flow model

Neoclassical economics

Neoclassical Synthesis model

Net creditor

Net debtor

Net Domestic Product (NDP)

Net exports

Net foreign factor income

Net interest

Net International Investment Position

Net investment (NI)

Net investment position

Net marginal gain

Net social product

Net worth (equity)

Neutral goods

Neutral monetary expansion

Neutral time preference

Neutrality of money

New goods bias

Nominal Gross Domestic Product (GDP)

Nominal interest rate

Nondurable goods

Non-neutral monetary expansion

Normal goods

Normal profit

Normative statement

Not in the civilian non-institutional population

Not in the labor force

Objects of labor

Off-budget deficit

Off-budget surplus

Offer curves

Official poverty rate

Official reserve holdings


On-budget deficit

On-budget surplus

Open market operations

Opportunity costs

Optimal plant size

Ordinal utility

Organic composition of capital (OCC)

Original means of production

Orthodox economics




Paradox of thrift

Partial crowding out

Partial equilibrium model

Partial specialization


Payoff matrix



Per capita real GDP

Perfect competition

Perfect income equality

Perfect income inequality

Perfect price discrimination

Perfectly elastic

Perfectly inelastic


Personal consumption expenditures

Pigouvian tax

Planned investment


Point elasticity

Point-slope form

Positive statement

Positive sum game

Positive time preference

Positively related variables

Post-Civil War SSA

Postwar SSA

Potential GDP


Poverty threshold

Precautionary demand for money

Present value

Pre-tax consumption function

Price ceiling

Price discrimination

Price elasticity of demand

Price elasticity of supply

Price floor

Price index

Price leadership model

Prices of production



Primary market

Primitive accumulation

Primitive communist mode of production


Private capital stock

Private ownership

Private transfer payments

Processor of checks

Producer credits

Producers’ surplus

Product market

Production possibilities frontier (PPF)

Production possibilities model

Production possibilities schedule

Production price ratio

Production technology

Productive efficiency

Profit income

Profit of enterprise

Progressive tax system


Promoters’ profit

Proportional tax system

Public goods

Purchasing power

Quality change bias

Quantity Equation

Quantity Theory of Money

Quasi-public institution

Quintile ratio

Rate of interest (i)

Rate of profit

Rate of profit of enterprise

Rate of surplus value (or degree of exploitation)

Ratio of income to poverty

Rational protectionism

Real GDP growth rate

Real GDP per worker

Real Gross Domestic Product (GDP)

Real interest rate

Real wage (q)


Rectangle of redistribution

Reference line

Regressive tax system

Regulator of the money supply

Regulatory capture

Relative surplus value

Rental income

Rent-seeking activities

Reserve army of the unemployed

Reserve requirement

Reserve requirement ratio (R)

Residential fixed investment

Resource market

Resources (factors of production or inputs)

Retainable industries

Retained earnings


Sales effort


Saving function

Savings and loan associations

Say’s Law of Markets

Scientific method

Secondary market


Self-fulfilling prophecy



Short run

Short run aggregate supply (SRAS) curve

Short run average total cost (SRATC)


Simple commodity circuit

Simple deposit multiplier

Simple form of value

Simple labor

Simple Reproduction

Simultaneous games

Slave-based mode of production

Slope-intercept form

SNALT required per unit of commodity (e)

Social forces of production

Social formations

Social market economy

Social relations of production

Social structure of accumulation (SSA)

Social structure of accumulation (SSA) theory

Social superstructure

Socialist mode of production

Socially necessary abstract labor time (SNALT)

Sole proprietorships

Special unemployment rate

Specialization and division of labor

Speculative demand for money

Stable equilibrium


State ownership

Static efficiency

Statistical discrepancy

Sticky prices

Stock variable


Store of value


Structural unemployment

Structure of production

Suboptimal outcome

Subprime mortgage loans



Substitution bias

Substitution effect

Supervisor of banks

Supplemental poverty measure

Supply price


Surplus labor (SL)

Surplus product (SP)

Surplus value



Taxes on production and imports


Term to maturity

The tangent line method

Theocratic governments

Theory of purchasing power parity

Thrift institutions

Time asymmetry

Time constraint

Time preference

Total cost (TC)

Total fixed cost (TFC)

Total labor (TL)

Total opportunity cost

Total product (TP)

Total resource cost (TRC)

Total revenue

Total surplus

Total utility

Total value (TV)

Total variable cost (TVC)

Trade balance

Trade deficit

Trade surplus


Trading possibilities frontier (TPF)

Transaction costs

Transactions demand for money

Transformation problem


Turnover time

Unbalanced contraction

Unbalanced growth



Underwriting a stock issue


Unemployment rate

Unequal exchange

Unidirectional causality

Unified budget deficit

Unified budget surplus

Unincorporated businesses

Unit elastic

Unit of account

Universal equivalent

Unlimited liability

Unproductive labor-power

Unrelated goods

Unstable equilibrium

Use value




Valorization process


Value of labor-power

Value of money (VOM)

Value ratio

Variable capital (v)

Veblen Good

Velocity of money

Vice Chair of the Federal Reserve Board

Wage elasticity of labor supply

Wage-price inflationary spiral


Walras’s Law



wealth effect

Yield to maturity

Zero-impact discount rate (id*)

Zero-sum game


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