Category: Economics Terms

Become a economics expert with our full economics dictionary below:

Absence Rate

The absence rate is the percentage of workers who are absent from their jobs. It is a measure of employee absenteeism and can be used to gauge the pro…

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Accountancy

Accountancy is the process of communicating financial information about a business to users such as shareholders and managers. The main purpose of accou…

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Accounting Reform

Accounting reform refers to a set of changes that aim to improve the accuracy and transparency of financial reporting by businesses and other organizati…

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Actuary

An actuary is a professional who uses mathematical and statistical methods to assess risk in insurance, finance, and other industries. Actuaries typical…

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Adaptive

In Economics, the word “adaptive” is used to describe a process or system that is able to change and adapt in response to new conditions. The term is of…

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Adverse Selection

Adverse selection is a type of market failure that can occur when people with better knowledge about a good or service are able to buy it while those wh…

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Agent

An economic agent is an entity that engages in economic activity, such as the production, consumption or transfer of goods and services.

In microeco…

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Aggregate Demand

Aggregate demand is an economic term used to describe the total demand for goods and services in an economy. It is often represented by a graph that sho…

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Aggregate Supply

Aggregate supply is the total supply of goods and services produced by an economy at a given overall price level in a given period of time. It is repres…

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Aggregation Problem

The aggregation problem is a problem in Economics that refers to the issue of how best to aggregate the preferences of individual economic agents into a…

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Agricultural

Agricultural economists study how to produce food and fiber crops efficiently and how to allocate resources among competing uses. They also develop ways…

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Anarchist

Anarchist economics is a set of theories and practices that focuses on the voluntary interactions between people, without interference from the state or…

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Ancient Thought

There is no definitive answer to this question, as the term “ancient thought” can refer to a wide variety of ideas and concepts from different cultures …

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Applied Economics

Applied Economics is the application of economic analysis and econometrics to solve real-world problems. It often involves the use of data and economic …

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Applied Fields

Applied economics is a field of economics that uses economic principles and methods to solve real-world problems. It is distinct from pure economics, wh…

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Austrian Economics

Austrian economics is a school of economic thought that emphasizes the importance of individual human action, telesemantics, and the subjective nature o…

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Austrian School

The Austrian School of economics is a school of thought that stresses the importance of individual freedom and market forces in shaping economic outcome…

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Backward Induction

Backward induction is a process of reasoning in which one works backwards in time to infer what a player will do in the present. It is important in econ…

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Balance of Payments

The balance of payments (BOP) is an accounting statement that records all money flowing in and out of a country during a specified period. The purpose o…

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Balance of Trade

The balance of trade is the difference between a country’s imports and exports. A country with a surplus of exports over imports is said to have a favor…

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Bank Reserves

Bank reserves are the funds that a bank keeps on hand to meet its customers’ demands for withdrawals. They also serve as a buffer against unexpected dep…

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Behavioral

Behavioral economics is the study of how people make decisions. It is a relatively new field that combines economics and psychology to understand why pe…

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Bellman Equation

The Bellman equation is a fundamental equation in economics that describes the optimal way to make decisions over time. The equation is named after Amer…

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Bequest Motive

The bequest motive is the desire to leave an inheritance for one’s heirs. This motive is important in economics because it can help explain why people s…

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Big Mac Index

The Big Mac Index is a popular measure of purchasing power parity (PPP) between nations. It was created by The Economist in 1986 as a way to measure whe…

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Big Push Model

The Big Push model is a theory that suggests that economic development requires a coordinated effort in order to be successful. This means that all sect…

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Bilateral Economics

Bilateral economics is the study of economic activity between two countries. It examines trade flows, investment flows, and other economic transactions …

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Bioeconomics

The term “bioeconomics” is relatively new, and it is still being defined by economists and policy-makers. As the bioeconomy grows, it is likely that the…

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Black Market

A black market is a thriving illegal marketplace where goods or services are traded without the consent of the authorities. It may be clandestine, opera…

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Buddhist Economics

Buddhist economics is a spiritual approach to economics that emphasizes the importance of compassion, interdependence, and moderation. It is based on th…

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Bullionism Economics

Bullionism economics is a theory that suggests that the value of a nation’s currency is linked to the country’s gold and silver reserves. The theory aro…

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Business Cycle

The business cycle is the natural rise and fall in economic activity that occurs over time. The cycle is measured by considering the growth rate of real…

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