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Labor Intensive Methods: Use of low quantity of capital per worker.

Labor Productivity: The ratio of real output per unit of labor input; growth is measured by a higher ratio of outputs to inputs.

Large Econometric Models: Mathematical constructions of national economics used for policy analysis and forecasting.

Law of Demand: People purchase more of any particular good or service as its relative price falls; they purchase less as its relative price rises.

Law of Supply : At higher relative prices, the quantity supplied of a good will increase; at lower relative prices, smaller quantities will be supplied.

Legal Tender : Paper dollars and coins mandated as acceptable means of payment by the government.

Leisure: All uses of time in which ones labor services are not exchanged for money. The uses of everyone's time can be divided between employment and leisure.

Liabilities: Amounts owed, or the legal claims against a business or household by nonowners.

Libertarianism: The view that governments role should be minimal, rarely interfering in the personal lives of private citizens.

Lorenz Curve: A graph which visually presents a measure of the inequality of a nations income distribution.

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