i) Commodities used to make other commodities in future. Thus, bricks, steel, lathes, and mastery of the Latin fourth declension are not valued in themselves for direct consumption, but are all used to make things in the future that are: houses, motorcars, chairs, Latin poetry.

ii) The pile of existing capital, somehow added together into one number. The related but distinct idea is 'investment', i.e., the additions to the stock. The flow of water per minute into a bathtub added up over the number of minutes it has been flowing is the stock of water in the bathtub. Likewise, investment added up is the stock of capital.

iii) In business, the financial resources available for an enterprise; what is put into a project.

Markets undistorted by monopoly, that is, by concentrations of power among either buyers or sellers.

The demand for goods by British households as distinct from British firms, the British government, or foreigners.

Men out of work because of a depression. It is identical to demand-deficient unemployment, distinct from frictional unemployment.

The ratio of those who do not work for money, i.e., normally children, old people and some married women, to those who work.

Sensitivity or expansibility. The price elasticity of demand for housing, for instance, is the sensitivity of the quality of housing people wish to buy to the price of housing. If they change their buying of housing very little when price goes up the demand is said to have a low elasticity, or to be elastic; if they change it a lot it is said to have a high elasticity, or to be elastic. Supply, too, has an elasticity 'with respect to price' (another way of saying 'price elasticity'). Mathematically speaking, elasticity is the rate of change of, say, quantity demanded (the result) divided by the rate of change of price (the cause).

Schedules of amounts forthcoming at various prices that show the amount to be very expansible at little rise in the price. The supply curve of labour facing the London docks, for example, was very elastic: at a trivial or small rise in the wage offered the employers could get as many additional workers as they wanted. Likewise, a single cotton mill, for example, would face an elastic supply schedule of cotton, which is to say that it would get no cotton at all at a price slightly below the going price. From the mill's point of view, then, the price of cotton is fixed.

Literally, the fencing of new farms. Historically, it was the reorganization of traditional agriculture in England, beginning as early as the 14th century and climaxing in the 'Parliamentary' enclosures of the late 18th century. It created modern farms out of so-called 'open' fields, i.e., traditional holdings scattered about the village and subject to common grazing.

Managerial skill; or, especially as used by Joseph Schumpeter and other theorists of capitalims in the early 20th century, UNUSUAL managerial skill combined with a willingness to take risks and a perspicacity about the future. From the French word meaning simply 'contractor'.

The mutual enrichment by expanded trade that takes place when one country buys from another, setting men to work who spend their income from work on the products of the first country. The successive rounds peter out, leaving income in both countries higher than before trade. The argument, which is an offset to the autarkic tendency of Keynesian economics, depends on the existence in both countries of unemployment.

Using up resources now to get a return in the future, such as buildings, railways, educating the people, and so forth. Investment in one's own country is one of the major parts of national income (the others being consumption, government spending, and investment abroad). It is a more or less productive use of the money value of saving to increase future income. More technically, it is the rate per year at which the existing stock of capital is added to.

All workers for money income. Housewives, who do not work for money income, are not part of the labour force, as are not people who do not work, at all, such as small children.

The sum of the value of everything produced for the nation, taking care not to count the value of, say, coal twice, once when it is mined and again when it is burned to make iron. National income is the sum of every income earned in the nation: workers, capitalists, landlords, bureaucrats. As a first approximation it is equal to national product, for the cost of producing things is someone's income. The taxes on things, such as sales tax on bread, however, make for a difference between what is paid ('at market prices') and what is earned ('at factor costs'). The national income at factor cost, then, is rather lower than national product (which itself may be lowered by removing depreciation). The national value added is the sum of all values added. The value added by each firm is the value of the labour and capital it uses, that is, the value of its goods in excess of its purchases from other industries. The sum of all these will be the value of labour and capital, i.e, national income.

The introduction of a new way of making an old thing, as distinct from the introduction of a new thing ('product' innovation).

The introduction of a new thing, as distinct from a new way of making an old thing ('process' innovation). The word 'innovation' in both phrases emphasizes that it is not invention - i.e., discovery - that is entailed, but bringing into practical use.

Output per unit of input, conventionally either of land, labour, capital or some combination of these.

The ratio of all output to a composite of all inputs. If it rises it signifies a rise in output relative to inputs, greater 'efficiency' in common parlance. It is called 'total' (as distinct from 'partial') productivity because it is not merely output per unit of labour alone, or any one input alone. It is the productivity of all 'factors' (i.e, inputs) taken together. Other names for it are 'the residual', technical progress', or 'productivity changes'.

Early and therefore uncentralized and unmechanized industry, as in the countryside of Flanders or Lancashire in the 18th century.

A common adjective in economics, meaning 'Adjusted for mere inflation or deflation of prices in general'.

The nation's income (or production because what it produced accrues as someone's income) brought back to the £s of some particular year, such as 1913. The result allows income to be compared from year to year even if prices have changed between them.

Inputs that are used in one industry alone. Skilled miners, or, still more, the coal seams themselves are highly specialised factors of production. They receive the above-normal or below-normal returns to the industry, being unwilling and unable to move in and out of the industry in response to good and bad times.