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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

Vertical Integration Definition
Vertical Integration: Definition, Examples, Pros & Cons
Vertical integration is where two businesses at different stages of the supply chain join together.
Porters 5 Forces Definition
Porter’s 5 Forces: Definition, Model & Example
Porters 5 forces is a method used to breakdown and understand the competitive nature of an industry or business.
Keynesian Economics Definition
Keynesian Economics: Definition & How It’s Used
The basic premise of Keynesian economics is that government intervention should be used to stabilize the economy.
Bounded Rationality Definition
Bounded Rationality: Definition & Examples
Bounded rationality highlights the limitations of humans’ ability to make optimal decisions.

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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