Welcome to a lesson on the vocabulary of the economy! Understanding economic terms is crucial for comprehending financial news, business discussions, and global trends.
Let’s delve into key words that will help you navigate the complex world of economics.
Economy vocabulary
- Economy: (noun) The system of production, distribution, and consumption of goods and services within a society or geographical area.
- Gross Domestic Product (GDP): (noun) The total value of all goods and services produced by a country in a specific time period, often used as an indicator of a nation’s economic health.
- Inflation: (noun) The rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power.
- Unemployment: (noun) The state of being without a job, often measured as a percentage of the total labor force.
- Market: (noun) The exchange of goods and services between buyers and sellers, where prices are determined through supply and demand.
- Interest Rate: (noun) The percentage at which interest is charged or paid on borrowed money, typically expressed as an annual percentage rate (APR).
- Budget: (noun) A financial plan that outlines expected income and expenses over a specific period, usually one year.
- Trade Balance: (noun) The difference between a country’s exports and imports of goods, used to measure economic health and international trade relationships.
- Deficit: (noun) The amount by which a sum of money falls short of the required or expected amount; often used in the context of a government’s budget.
- Investment: (noun) The action or process of allocating money in order to generate income or profit, typically through the purchase of financial assets or business ownership.
Congratulations on expanding your knowledge of economic vocabulary! These terms will empower you to better understand and discuss economic concepts, enabling you to follow economic trends, make informed decisions, and engage in conversations about the financial world. Stay tuned for more enriching vocabulary lessons on our language-learning journey!
