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Economics

Grades 7–8 Economics Vocabulary

20 essential words with definitions, examples, and quick-check quizzes.

Macroeconomics
noun
Economics dealing with entire economies and national policies....
Aggregate Demand
noun
Total spending by all consumers and businesses in an economy....
Aggregate Supply
noun
Total production of goods and services in an economy....
Central Bank
noun
A country's primary bank managing monetary policy....
Federal Reserve
noun
The central banking system of the United States....
Quantitative Easing
noun
Central bank purchase of long-term assets to increase money supply....
Deflation
noun
A general decrease in prices across the economy....
Stagflation
noun
Economic stagnation combined with high inflation....
Comparative Advantage
noun
Efficiency advantage in producing goods relative to another producer....
Exchange Rate
noun
The value of one country's currency relative to another....
Balance Of Payments
noun
Record of all economic transactions between a country and others....
Derivatives
noun
Complex financial instruments derived from underlying assets....
Equity
noun
Ownership stake in a company represented by stocks....
Securities
noun
Financial instruments like stocks and bonds representing ownership....
Hedge Fund
noun
An investment fund that uses aggressive strategies to maximize returns....
Venture Capital
noun
Money invested in new businesses with growth potential....
Cryptocurrency
noun
Digital money using cryptography for security....
Fintech
noun
Financial technology companies disrupting traditional banking....
Behavioral Economics
noun
Study of how psychology affects economic decisions....
Game Theory
noun
Mathematical study of strategic interactions between parties....

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