16/03/2026
๐ Economics Glossary (Important Economics Terms & Definitions)
Bangladesh Smart Economics Society- BESS
1. Economics โ The study of how people use limited resources to satisfy unlimited wants.
2. Scarcity โ A situation where resources are limited but human wants are unlimited.
3. Opportunity Cost โ The value of the next best alternative that is given up when a choice is made.
4. Demand โ The quantity of a good or service consumers are willing and able to buy at different prices.
5. Supply โ The quantity of a good or service producers are willing to sell at different prices.
6. Market โ A place or system where buyers and sellers interact to exchange goods and services.
7. Inflation โ A continuous rise in the general price level of goods and services in an economy.
8. Deflation โ A continuous fall in the general price level of goods and services.
9. GDP (Gross Domestic Product) โ The total value of final goods and services produced within a country in a year.
10. National Income โ The total income earned by the factors of production in an economy.
11. Fiscal Policy โ Government policy related to taxation and public expenditure.
12. Monetary Policy โ Policy used by the central bank to control money supply and interest rates.
13. Balance of Trade (BOT) โ The difference between a country's exports and imports of goods.
14. Balance of Payments (BOP) โ A record of all economic transactions between a country and the rest of the world.
15. Capital โ Man-made resources used for producing goods and services (machines, tools, buildings).
16. Labour โ Human effort used in the production process.
17. Land โ All natural resources used in production.
18. Entrepreneurship โ The ability to organize factors of production and take risks to start a business.
19. Utility โ The satisfaction derived from consuming a good or service.
20. Elasticity of Demand โ Measures how much demand changes when price changes.
