Economics
/ˌiːkəˈnɒmɪks/
Definitions
The study of how societies allocate scarce resources to produce goods and services and distribute them among people.
/ˌiːkəˈnɒmɪks/
The branch of knowledge concerned with the production, consumption, and transfer of wealth.
She studied economics to understand how markets function.
💡 Simply: Economics is like figuring out how to share your toys with your friends, or how stores decide how much to charge for things. It's about making choices when there isn't enough of everything!
👶 For kids: Economics is about how people make and share things like toys or food.
More Examples
The principles of economics are essential for understanding global trade.
His understanding of economics helped him make smart financial decisions.
How It's Used
"He is a professor of economics at the university."
"The company's financial decisions are based on sound economic principles."
"Economic policies influence the country's growth."
Idioms & expressions
supply and demand
The relationship between the availability of a product or service and the desire for it by consumers.
"The law of supply and demand dictates that prices rise when demand exceeds supply."
invisible hand
A metaphor for how free markets regulate themselves through self-interest and competition.
"Adam Smith described the invisible hand as the guiding force behind market efficiency."
From Greek οἰκονομία (oikonomía, "household management"), from οἶκος (oîkos, "house") + νόμος (nómos, "law, custom"). It evolved to encompass the study of the production, distribution, and consumption of goods and services.
The term economics gained prominence in the late 19th century, replacing the earlier term 'political economy.'
Memory tip
Think of the "house" and "rules" – how a society manages its resources like a household.
Practice
Word Origin
Root: οἶκος (oîkos) - house