Economics — English Vocabulary
40 essential words about economics in the live bank, with meanings and examples. Open any word for its full page.
economy /ɪˈkɒnəmi/ noun B2
The system of how money, business, and resources work in a country or area.
Example: The economy grew by 3 percent this year.
income /ˈɪnkʌm/ noun B2
Money that a person or company receives regularly, especially from work or business.
Example: Their family income doubled in five years.
expense /ɪkˈspens/ noun B2
Money spent on something; a cost of running a home or business.
Example: Travel is a big expense for the family.
invest /ɪnˈvest/ verb B2
To put money, time, or effort into something to get a benefit or profit later.
Example: They invest in small tech companies.
trade /treɪd/ noun / verb B2
The buying and selling of goods and services between people, companies, or countries; to exchange.
Example: Trade between the US and Canada is enormous.
value /ˈvæljuː/ noun / verb B2
How much something is worth in money; how important or useful something is; to consider something important.
Example: The house rose in value this year.
payment /ˈpeɪmənt/ noun B2
An amount of money paid or that must be paid; the act of paying.
Example: Your payment is due on the first of the month.
tax /tæks/ noun / verb B2
Money that people and companies must pay to the government to fund public services.
Example: Income tax is taken from every paycheck.
currency /ˈkʌrənsi/ noun B2
The type of money used in a country — dollars, euros, yen.
Example: The dollar is the currency of the United States.
inflation /ɪnˈfleɪʃən/ noun B2
A general rise in prices over time, so money buys less than before.
Example: Inflation pushed food prices up again.
recession /rɪˈseʃən/ noun C1
A period when a country's economy grows smaller and business activity slows down.
Example: The recession cost millions of workers their jobs.
deficit /ˈdefɪsɪt/ noun C1
The amount by which money spent is more than money received; a shortage of something needed.
Example: The government is trying to reduce the budget deficit.
revenue /ˈrevənjuː/ noun C1
Money that a company or government receives from business activity or taxes.
Example: The company's revenue grew 20 percent this year.
consumer /kənˈsjuːmər/ noun C1
A person who buys and uses goods and services.
Example: Consumers want lower prices and better quality.
sector /ˈsektər/ noun C1
One part of a country's economy or of an organization, such as health, tech, or education.
Example: The tech sector hired thousands this year.
forecast /ˈfɔːrkæst/ noun / verb C1
A statement about what will probably happen in the future, based on present information; to make such a statement.
Example: The weather forecast predicts rain on Friday.
prosperity /prɒˈsperəti/ noun C1
The state of being successful and wealthy, with strong economic growth and good living standards.
Example: The 1990s brought prosperity to the valley.
decline /dɪˈklaɪn/ noun / verb C1
A gradual decrease in amount, quality, or importance; to become less or weaker.
Example: Birth rates are in decline across the country.
asset /ˈæset/ noun C1
Something valuable that a person or company owns, such as property, money, or equipment; also a useful quality or person.
Example: The house is the family's biggest asset.
bankruptcy /ˈbæŋkrʌptsi/ noun C1
The legal state of being unable to pay your debts, declared by a court.
Example: The airline filed for bankruptcy in 2020.
fiscal /ˈfɪskəl/ adjective C1
Relating to government money — taxes, public spending, and budgets.
Example: The fiscal year begins in October for the US government.
monetary /ˈmʌnɪtəri/ adjective C1
Relating to money and the systems that control its supply and value in a country.
Example: The central bank controls monetary policy.
subsidy /ˈsʌbsədi/ noun C1
Money paid by a government to help an industry or public service, keeping prices low or supporting production.
Example: Farm subsidies support food prices.
tariff /ˈtærɪf/ noun C1
A tax on goods coming into a country, charged to protect local industries or raise money.
Example: The new tariff raised the price of imported steel.
embargo /ɪmˈbɑːrɡəʊ/ noun C1
An official ban on trade with another country, usually for political reasons.
Example: The embargo stopped oil exports.
austerity /ɒˈsterəti/ noun C1
Government policies of cutting public spending and raising taxes to reduce debt, usually making public services smaller.
Example: Austerity measures closed libraries.
downturn /ˈdaʊntɜːrn/ noun C1
A period when an economy or business becomes less successful; a fall in activity.
Example: The downturn cost thousands of jobs.
stimulus /ˈstɪmjələs/ noun C1
Government action (spending or tax cuts) meant to encourage economic activity and growth; also anything that causes activity or response.
Example: The stimulus checks helped families in the crisis.
quota /ˈkwəʊtə/ noun C1
An official limit on how much of something is allowed — goods imported, people admitted, or numbers to produce or sell.
Example: Import quotas limit foreign sugar.
surplus /ˈsɜːrpləs/ noun / adjective C1
An amount more than what is needed; extra stock or money left after needs are met.
Example: The budget showed a surplus this year.
expenditure /ɪkˈspendɪtʃər/ noun C1
The total amount of money a government, company, or person spends; the act of spending.
Example: Public expenditure on health rose.
globalization /ˌɡləʊbəlaɪˈzeɪʃən/ noun C1
The process by which businesses, cultures, and economies of countries become connected and dependent on each other.
Example: Globalization made supply chains worldwide.
capitalism /ˈkæpɪtəlɪzəm/ noun C1
An economic system in which businesses and property are mostly privately owned and operated for profit in competitive markets.
Example: Capitalism rewards risk and innovation.
producer /prəˈdjuːsər/ noun C1
A company or country that makes or grows goods for sale; also a person who organizes and finances films, music, or shows.
Example: Brazil is a major coffee producer.
commerce /ˈkɒmɜːrs/ noun C1
The activity of buying and selling goods and services, especially between countries or on a large scale; trade.
Example: Commerce between the two countries grew.
export /ˈekspɔːrt/ noun / verb C1
Goods or services sold to another country; to sell goods abroad.
Example: The country's main export is software.
import /ˈɪmpɔːrt/ noun / verb C1
Goods or services bought from another country; to buy goods from abroad.
Example: Imports of oil fell this year.
multinational /ˌmʌltiˈnæʃənəl/ adjective / noun C1
Operating in many countries; a large company with offices and factories in many countries.
Example: She works for a multinational bank.
portfolio /pɔːrtˈfəʊliəʊ/ noun C1
A collection of investments (shares, bonds, property) owned by a person or company; also a collection of an artist's or student's work, and originally a case for carrying papers.
Example: His portfolio mixes stocks and bonds.
obligation /ˌɒblɪˈɡeɪʃən/ noun C1
Something you must do because of a law, promise, or contract; a duty. In finance, a debt or commitment to pay.
Example: The contract lists each side's obligations.