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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

Anchoring Bias Definition
Anchoring Bias: Definition & Examples
Anchoring is a cognitive bias where a specific piece of information is relied upon to make a decision.
Protectionism Definition
Protectionism: Definition, Advantages & Disadvantages
Protectionism is whereby nations aim to prevent or restrict the supply of goods coming into the country.
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.
Economies of Scale graph
Economies of Scale: Definition, Types & Examples
Economies of scale occur when a business benefits from the size of its operation. As a company gets bigger, it can benefit from a number of efficiencies.

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In The Spotlight

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Feature What Is Economics?

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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