Factor Cost - A measure of output reflecting the costs of the factors of production used, rather than market prices, which may differ because of indirect tax and subsidy (see GDP).
Factors of production - The ingredients of economic activity: Land, Labour, Capital and Enterprise.
Financial System - The Firms and institutions that together make it possible for Money to make the world go round.
Fiscal Policy - One of the two instruments of Macroeconomic Policy; Monetary Policy's side-kick. It comprises Public Spending and Taxation, and any other Government income or assistance to the private sector.
Fixed Costs - Production costs that do not change when the quantity of Output produced changes, for instance, the cost of renting an office or factory space. Final goods - Products that end up in the hands of consumers.
Full Employment - A term that is used in many senses. Historically, it was taken to be that level of employment at which no (or minimal) involuntary unemployment exists. Today economists rely upon the concept of the natural rate of unemployment to indicate the highest sustainable level of employment over the long run.