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