Laois City for liability: items that one person, firm, or group potentially owe another person, firm, or group. For example, when borrowing money from a lender, that borrowed money is considered a liability for the borrower because the money must be repaid. long run: a period of time or decision-making period where all factors of production are variable. Lorenz curve: a graphical means of illustrating how income or wealth is distributed within an economic system. The curve is often used to measure the proportion of income earned by a cumulative percentage of the population within that economic system. macroeconomics: the study of how the whole economy allocates goods and services across competing ends with unlimited wants. Macroeconomics focuses on the behavior of variables like GDP, inflation, unemployment, and long-run economic growth. Laois City 2016.