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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

finance charge
Finance Charge
A finance charge is the fee or interest imposed by a lender on a borrower for the use of credit or for delaying payment on a loan or credit card.
expected value formula
Expected Value Formula
The expected value formula is a mathematical calculation used to estimate the average outcome of a random variable, taking into account the probabilities of different possible outcomes.
economic efficiency
Economic Efficiency
Economic efficiency refers to the optimal allocation of resources to maximize overall welfare or output.
efficient frontier
Efficient Frontier
Table of Contents What is Efficient Frontier? Understanding Construction Optimal Portfolios Applications Limitations Examples FAQs Efficient Frontier: Definition, Limitations & Examples Written by Paul Boyce Posted in Finance Last Updated July 20, 2023 What is Efficient Frontier? The Efficient Frontier is a graphical representation of all the optimal portfolios that offer the highest expected return

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Trending Definitions

Externalities Definition
Externalities: Definition, Positive & Negative Examples
In economics, an externality refers to a cost or benefit that is imposed onto a third party.
Market Failure Definition
Market Failure: Definition, Causes & Examples
A market failure is said to occur when there is an inefficient allocation of resources. This can occur when the supply does not fully reflect demand. So there might be an undersupply or oversupply.

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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