Economics glossary
526 economics terms in plain words, each with an example from real life. It is the same dictionary you find inside the Economisto app.
Behavioral 28 terms
- Anchoring
- Availability Heuristic
- Bounded Rationality
- Choice Overload
- Confirmation Bias
- Default Effect
- Dictator Game
- Endowment Effect
- Framing Effect
- Gift Exchange
- Herd Behavior
- Hindsight Bias
- Hyperbolic Discounting
- Libertarian Paternalism
- Loss Aversion
- Mental Accounting
- Nudge
- Optimism Bias
- Overconfidence
- Planning Fallacy
- Present Bias
- Prospect Theory
- Reciprocity
- Regret Aversion
- Representativeness Heuristic
- Salience Bias
- Status Quo Bias
- Ultimatum Game
Consumer Theory 22 terms
- Budget Constraint
- Certainty Equivalent
- Cobb-Douglas Utility
- Completeness Axiom
- Composite Good
- Convex Preferences
- Diminishing Marginal Utility
- Engel Curve
- Expected Utility
- Income Effect
- Indifference Curve
- Leontief Preferences
- Lexicographic Preferences
- Marginal Rate of Substitution
- Marginal Utility
- Marshallian Demand
- Preference Relation
- Quasi-Linear Utility
- Slutsky Equation
- Substitution Effect
- Transitivity (Preferences)
- Utility
Development 8 terms
Economists 32 terms
- Adam Smith
- Alfred Marshall
- Amartya Sen
- Amos Tversky
- Daniel Kahneman
- David Ricardo
- Douglass North
- Elinor Ostrom
- Esther Duflo
- Eugene Fama
- Friedrich Hayek
- Gerard Debreu
- Irving Fisher
- James Tobin
- John Hicks
- John Maynard Keynes
- John Stuart Mill
- Joseph Schumpeter
- Joseph Stiglitz
- Karl Marx
- Kenneth Arrow
- Ludwig von Mises
- Léon Walras
- Milton Friedman
- Paul Krugman
- Paul Romer
- Paul Samuelson
- Richard Thaler
- Robert Lucas Jr.
- Robert Solow
- Ronald Coase
- Vilfredo Pareto
Elasticity 11 terms
Environmental 3 terms
Financial Economics 36 terms
- Alpha
- Arbitrage
- Beta
- Bond
- Call Option
- Capital Asset Pricing Model (CAPM)
- Capital Gain
- Coupon
- Credit Default Swap
- Derivative
- Dividend
- Efficient Market Hypothesis
- Exchange-Traded Fund
- Expected Return
- Forward Contract
- Future Value
- Futures Contract
- Hedge Fund
- Hedging
- Initial Public Offering
- Internal Rate of Return
- Leverage
- Margin (Finance)
- Market Capitalization
- Mutual Fund
- Option
- Private Equity
- Put Option
- Random Walk (Finance)
- Securitization
- Short Selling
- Stock
- Subprime Mortgage
- Swap
- Venture Capital
- Yield
Fiscal Policy 27 terms
- Automatic Stabilizers
- Average Tax Rate
- Budget Balance
- Budget Surplus
- Capital Gains Tax
- Corporate Tax
- Crowding Out
- Cyclical Deficit
- Fiscal Multiplier
- Fiscal Policy
- Flat Tax
- Government Spending
- Laffer Curve
- Lump-Sum Tax
- Marginal Tax Rate
- National Debt
- Payroll Tax
- Primary Deficit
- Progressive Tax
- Regressive Tax
- Sovereign Debt
- Sovereign Default
- Structural Deficit
- Tax Base
- Tax Incidence
- Transfer Payment
- Value-Added Tax
Game Theory 20 terms
- Backward Induction
- Battle of the Sexes
- Chicken Game
- Common Knowledge
- Coordination Game
- Dominant Strategy
- Evolutionarily Stable Strategy
- Folk Theorem
- Mechanism Design
- Mixed Strategy
- Nash Equilibrium
- Payoff Matrix
- Perfect Information
- Prisoner's Dilemma
- Pure Strategy
- Sequential Game
- Simultaneous Game
- Subgame-Perfect Equilibrium
- Tit-for-Tat
- Zero-Sum Game
Institutions 18 terms
Labor 26 terms
- Beveridge Curve
- Collective Bargaining
- Compensating Differential
- Cyclical Unemployment
- Discouraged Worker
- Efficiency Wage
- Frictional Unemployment
- Gig Economy
- Hedonic Wage Theory
- Human Capital
- Labor Demand
- Labor Force
- Labor Force Participation Rate
- Labor Supply
- Labor Union
- Marginal Revenue Product
- Minimum Wage
- Right-to-Work
- Search and Matching
- Signaling (Education)
- Sticky Wages
- Structural Unemployment
- Underemployment
- Unemployment
- Value of Marginal Product
- Wage-Price Spiral
Macroeconomics 47 terms
- Aggregate Demand
- Aggregate Supply
- Animal Spirits
- Business Cycle
- Consumption
- Convergence
- Deflation
- Demand Shock
- Demographic Dividend
- Depression
- Endogenous Growth
- GDP (Gross Domestic Product)
- GDP Deflator
- GDP per Capita
- GNP (Gross National Product)
- Growth Rate
- Hysteresis
- Inflation
- Investment
- Liquidity Trap
- Lucas Critique
- Marginal Propensity to Consume
- Marginal Propensity to Save
- Multiplier Effect
- NAIRU
- Natural Rate of Unemployment
- Net Exports
- Nominal GDP
- Okun's Law
- Output Gap
- Paradox of Thrift
- Phillips Curve
- Potential GDP
- Producer Price Index
- Rational Expectations
- Real Business Cycle
- Real GDP
- Recession
- Ricardian Equivalence
- Sacrifice Ratio
- Savings Rate
- Secular Stagnation
- Solow Growth Model
- Stagflation
- Supply Shock
- Total Factor Productivity
- Wealth Effect
Market Failure 15 terms
Market Structures 18 terms
Markets 29 terms
- Complementary Goods
- Credence Good
- Demand
- Demand Shift
- Equilibrium
- Experience Good
- Giffen Good
- Inferior Good
- Law of Demand
- Law of Supply
- Lemons Problem
- Market Equilibrium
- Market Power
- Network Effect
- Normal Good
- Price Ceiling
- Price Floor
- Price Maker
- Price Taker
- Screening
- Search Good
- Shortage
- Signaling
- Substitute Goods
- Supply
- Supply Shift
- Surplus
- Two-Sided Market
- Veblen Good
Microeconomics 25 terms
- Absolute Advantage
- Ceteris Paribus
- Cost-Benefit Analysis
- Incentive
- Invisible Hand
- Isocost Line
- Isoquant
- Law of Diminishing Returns
- Marginal Rate of Transformation
- Net Present Value
- Opportunity Cost
- Pigouvian Tax
- Present Value
- Production Possibilities Frontier
- Property Rights
- Risk Aversion
- Risk Loving
- Risk Neutrality
- Scarcity
- Search Cost
- Subsidy
- Sunk Cost
- Switching Cost
- Time Preference
- Transaction Cost
Money & Banking 39 terms
- Bank Run
- Basel Accords
- Bitcoin
- Capital Requirement
- Central Bank
- Central Bank Digital Currency
- Deposit Insurance
- Discount Rate (Central Bank)
- Dual Mandate
- Excess Reserves
- Federal Funds Rate
- Fiat Money
- Fisher Equation
- Fractional Reserve Banking
- Gold Standard
- Helicopter Money
- Interest Rate
- Inverted Yield Curve
- LIBOR
- Liquidity
- M0 (Monetary Base)
- M1
- M2
- Monetary Base
- Monetary Policy
- Money Multiplier
- Money Supply
- Nominal Interest Rate
- Open Market Operations
- Prime Rate
- Quantitative Easing
- Real Interest Rate
- Repurchase Agreement (Repo)
- Required Reserves
- Seigniorage
- SOFR
- Taylor Rule
- Velocity of Money
- Yield Curve
Production 28 terms
- Average Cost
- Average Fixed Cost
- Average Product
- Average Variable Cost
- Capacity Utilization
- Capital
- Capital Intensity
- Constant Returns to Scale
- Decreasing Returns to Scale
- Economies of Scale
- Entrepreneurship
- Factors of Production
- Fixed Cost
- Increasing Returns to Scale
- Labor (Factor of Production)
- Land
- Learning Curve
- Long Run
- Marginal Cost
- Marginal Product
- Marginal Revenue
- Productivity
- Returns to Scale
- Short Run
- Technological Progress
- Total Cost
- Total Product
- Variable Cost
Schools of Thought 15 terms
Statistics 28 terms
- Causal Inference
- Chi-Squared Test
- Confidence Interval
- Correlation vs Causation
- Covariance
- Difference-in-Differences
- Endogeneity
- Fixed Effects
- Gini Coefficient
- Heteroskedasticity
- Instrumental Variable
- Mean
- Median
- Mode
- Multicollinearity
- Normal Distribution
- Null Hypothesis
- Omitted Variable Bias
- Ordinary Least Squares
- Panel Data
- Randomized Controlled Trial
- Regression
- Regression Discontinuity
- Sample
- Standard Deviation
- Type I Error
- Type II Error
- Variance
Trade 36 terms
- Balance of Payments
- Balance of Trade
- Beggar-Thy-Neighbor
- Big Mac Index
- Capital Account
- Capital Controls
- Comparative Advantage
- Currency Appreciation
- Currency Board
- Currency Crisis
- Currency Depreciation
- Currency Peg
- Current Account
- Devaluation
- Dutch Disease
- Exchange Rate
- Fixed Exchange Rate
- Floating Exchange Rate
- Foreign Direct Investment
- Free Trade
- GATT
- Heckscher-Ohlin Model
- Managed Float
- Mundell-Fleming Model
- Optimum Currency Area
- Portfolio Investment
- Purchasing Power Parity
- Quota
- Real Exchange Rate
- Revaluation
- Ricardian Trade Model
- Stolper-Samuelson Theorem
- Tariff
- Terms of Trade
- Trade Deficit
- Trade War
Welfare 15 terms
No term by that name.