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Featured Guide stock arrow behind empire start building representing economics Guide Economics 101

What is Economics? We deep dive and create
the ultimate guide to everything you need to know about Economics.

Latest Definitions

animal spirits
Animal Spirits
Animal spirits refers to the emotional and psychological factors that drive human behavior in economic decision-making, including confidence, optimism, and pessimism.
intrinsic value
Intrinsic Value
Intrinsic value refers to the underlying or inherent worth of an asset, based on its fundamental characteristics and cash flow potential.
constant returns to scale
Constant Returns to Scale
Constant Returns to Scale (CRS) refers to a production or cost structure where increasing all inputs by a certain proportion leads to an equivalent proportionate increase in outputs or costs.
nominal interest rate
Nominal Interest Rate
The nominal interest rate is the stated interest rate without accounting for inflation, representing the rate at which money grows over time.

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Trending Definitions

Eminent Domain
Eminent Domain
Eminent domain is the legal power of a government to expropriate private property for public use, accompanied by the requirement to provide just compensation to the property owner.
Gini Coefficient Definition
Gini Coefficient: Definition, How to Calculate & Formula
Simply put, the Gini coefficient is a statistical measure used to calculate inequality within a nation.
Public Goods Definition
Public Goods: Definition, Characteristics & Examples
A public good is a good whereby no individual can be excluded from benefiting from it. In other words, everyone can benefit from its use.
Externalities Definition
Externalities: Definition, Positive & Negative Examples
In economics, an externality refers to a cost or benefit that is imposed onto a third party.

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Daily Definition

Social Capital /səʊʃəl kæpɪtl/

Social capital refers to the links and bonds people form through friendships and acquaintances. These links can form through friendship groups, i.e. knowing a friend of a friend. Or, they can occur through daily social interactions.

Full Definition
Budget Deficit /‘bʌdʒɪt ‘dɛfɪsɪt/

A budget deficit occurs when the government spends more than it receives through taxation. For example, if it receives $2 trillion in tax receipts, but spends $2.5 trillion on public services – it has a budget deficit of $500 billion

Full Definition
Net Present Value /nɛt ‘prɛznt ‘væljuː/

Net Present Value (NPV) is the total value of future revenues, subtracted against any cash outflows during the same period. In other words, it calculates future streams of income and brings it in line to its present value. At the same time, it also factors in outflows.

Full Definition