Economics Definitions

This page holds our Financial Expert™ Definitions of economics jargon and terms. Cut through complex economic concepts with our easy explainer guides.

Each definition page is much more than a quick definition of an economics term.

Beyond the definition, we provide a deeper explanation in plain English and give more context to how the word is used.

We also explore deeper into the topic and link to connected concepts and interesting facts that we think are worthwhile bringing into the page.

We do this to provide a richer and more useful experience to help you discover more about finance and economics topics.

If you’re still hungry for more, I recommend you check out the best economics books which we have shortlisted for your attention.

Budget Deficit
Comparative Advantage
Command Economy
Consumer Price Index (CPI)
Demand Elasticity
Economic Growth
Economic Moat
Economies of Scale
Free Market
Fringe Benefits
Game Theory
Great Recession
Gross Domestic Product (GDP)
Industrial Revolution
Invisible Hand
Law of Supply and Demand
Monetary Policy
Monopolistic Competition

The best sources for economics definitions

If I encounter a new economics term, I like to look at the best investing & finance books to understand the concept deeply.

Macroeconomic concepts tend to interlink, and therefore it often isn’t enough to understand what a definition means. To truly understand an economics concept, you need to appreciate the interaction with other economics terms.

Examples include the interaction between supply and demand, inflation, the money supply, consumption, saving, borrowing, trade and foreign exchange rates.

Each of these factors can be connected to each of the others, and therefore without a robust framework of mentally how these factors work like levers and pulleys to influence the rest – the understanding of one definition in isolation is a moot point.

Economics books for beginners provide the best way to approach, as these titles are broad and will touch upon each of the topics above, for example.

This way, you can avoid falling into the trap of tumbling into a narrow rabbit hole of economics theory, when a lighter & broader coverage of more economics topics would be more practical and useful.

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