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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

Net exports
Net Exports
Net exports represent the difference between a country’s total exports and imports of goods and services, reflecting its trade surplus or deficit and influencing economic growth and currency exchange rates.
expansionary monetary policy
Expansionary Monetary Policy
Expansionary monetary policy is an economic approach where central banks increase the money supply, lower interest rates, and employ other measures to stimulate economic growth and increase aggregate demand.
Giffen Good
Giffen Good
A Giffen good is an unusual type of inferior good in which an increase in price leads to an increase in quantity demanded, contradicting the typical inverse relationship between price and demand.
Autarky Definition and Examples
Autarky Definition and Examples
Autarky is a self-sufficient economic state without international trade, but can limit growth due to higher costs, limited access to foreign goods, and lack of competition.

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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