| draft | The process by which new talent is assigned to teams.
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| free agent | A player who is able to offer services to the highest bidder.
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| local substitution | The effect of the substitution of one economic activity for another within a community, so the net effect is zero.
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| lockout | An action by employers to deny employees access to their jobs.
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| marginal revenue product of labor | The additional revenue generated from hiring an additional worker.
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| positive externalities | The benefit that a person other than the buyer or seller receives as the result of a transaction.
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| reservation wage | The least amount that a player will accept because it is the next best offer.
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| reserve clause | A contract clause that requires that players re-sign with the team to which they belonged the previous year.
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| revenue sharing | The process by which some revenues are distributed to all teams rather than simply the teams that generate them.
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| salary cap | The maximum in total payroll that a team can pay its players.
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| strike | An action by labor to deny employers the services of the employees.
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2003 McGraw-Hill Higher Education