Business & Finance · Reference dataset
Economics Terms
Economic terms organized by category, with definitions and examples.
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The 10 most recently added of 58 records · Select a column heading to sort.
| ID | Term | Category | Definition | Example |
|---|---|---|---|---|
| 49 | Diversification | Finance | Spreading investments to reduce overall risk. | Holding many stocks instead of one. |
| 50 | Compound Interest | Finance | Interest earned on both principal and past interest. | Savings that grow faster each year. |
| 51 | Bull Market | Finance | Period of rising asset prices and investor optimism. | Stocks climbing steadily for months. |
| 52 | Bear Market | Finance | Period of falling asset prices and investor pessimism. | A broad market drop of 20 percent. |
| 53 | Comparative Advantage | Trade | Making a good at lower opportunity cost than others can. | A country specializes in low cost cloth. |
| 54 | Absolute Advantage | Trade | Making more of a good than others from the same resources. | One country grows more wheat per acre. |
| 55 | Tariff | Trade | A tax placed on imported goods. | A 10 percent duty on imported steel. |
| 56 | Import Quota | Trade | A limit on the quantity of a good that may be imported. | Capping sugar imports at a set amount. |
| 57 | Balance of Trade | Trade | Difference between a country's exports and its imports. | A nation exports more than it imports. |
| 58 | Free Trade | Trade | Trade between nations free of tariffs and quotas. | Two nations trade with no import taxes. |
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Scope and sources
Last checked against sources: October 16, 2026.
Last changed: July 20, 2026. This is when we last changed the data or its description. It doesn’t mean the data runs up to that date.
- Wikipedia: Glossary of economics (used with permission)
- federalreserve.gov
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