IE2 Unit 8 – Economics – Additional Vocabulary

Nouns
1. Market (noun) - A place or system where buyers and sellers interact to trade goods and
services.
• Example: - The local market is bustling with activity on weekends.
2. Supply (noun) - The amount of a good or service that producers are willing to offer for sale.
• Example: - A sudden increase in supply led to lower prices.
3. Demand (noun) - The quantity of a good or service that consumers are willing to purchase at a
given price.
• Example: - High demand for the new product exceeded expectations.
4. Price (noun) - The amount of money expected, required, or given in payment for a good or
service.
• Example: - Fluctuations in the price of oil impact the global economy.
5. Credit (noun) - The ability to obtain goods or services before payment, with the promise to pay
later.
• Example: - Using credit wisely can help build a positive financial history.
6. Budget (noun) - A financial plan that outlines estimated expenses and income over a specific
period.
• Example: - Creating a budget is essential for managing personal finances.
7. Deficit (noun) - The amount by which expenditures exceed income or budgeted amounts.
• Example: - The government aims to reduce the budget deficit through fiscal policies.
8. Subsidy (noun) - Financial support or assistance given to a person, organization, or industry by
the government.
• Example: - Farmers receive subsidies to promote agricultural stability.
9. Inflation (noun) - The rate at which the general level of prices for goods and services is rising.
• Example: - Hyperinflation can have severe economic consequences.
10. GDP (Gross Domestic Product) (noun) - The total value of all goods and services produced by a
country in a specific time frame.
• Example: - A growing GDP indicates economic expansion.
11. Monopoly (noun) - Exclusive control by one company or group over the supply of a commodity
or service in a market.
• Example: - Breaking up monopolies can foster healthy competition.
12. Diversification (noun) - The process of spreading investments across different assets or
industries to reduce risk.
• Example: - Diversification is a key strategy for minimizing investment risk.
13. Recession (noun) - A period of economic decline, often characterized by a decrease in GDP and
employment.
• Example: - During a recession, businesses may face financial challenges.
 14. Boom (noun) - A period of economic growth and prosperity, often marked by increased
production and consumer spending.
• Example: - The housing market experienced a boom with rising property values.
15. Tax (noun) - A compulsory financial contribution imposed by a government to fund public
services.
• Example: - Changes in tax policies can impact individual and corporate finances.
16. Marketplace (noun) - A location or system where buyers and sellers engage in economic
transactions.
• Example: - Online marketplaces have revolutionized the way people shop.
17. Scarcity (noun) - The state of being in short supply; limited availability.
• Example: - Scarcity of resources can drive up prices in the market.
18. Liquidation (noun) - The process of selling off assets to pay debts or settle financial obligations.
• Example: - Businesses may resort to liquidation during financial crises.
19. Unemployment (noun) - The state of being without a job, actively seeking employment.
• Example: - High unemployment rates can strain social and economic structures.

Verbs
20. Produce (verb) - To create, manufacture, or bring forth goods or services.
• Example: - The factory produces high-quality electronics.
21. Consume (verb) - To use up or eat or drink; to utilize goods and services.
• Example: - People consume more energy during the winter months.
22. Invest (verb) - To allocate money with the expectation of achieving a profit or benefit.
• Example: - Many people choose to invest in the stock market for long-term growth.
23. Diversify (verb) - To spread investments across different assets or industries to reduce risk.
• Example: - Investors diversify their portfolios to protect against market fluctuations.
24. Trade (verb) - The action of buying and selling goods and services between people or countries.
• Example: - Nations engage in international trade to benefit from comparative
advantages.
25. Regulate (verb) - To control or maintain by means of rules or regulations.
• Example: - Governments regulate industries to ensure fair practices and consumer
protection.
26. Save (verb) - To set aside money for future use rather than spending it immediately.
• Example: - It's essential to save money for unexpected expenses.
27. Liquidate (verb) - To convert assets into cash, especially to pay off debts.
• Example: - The company decided to liquidate its assets to settle outstanding obligations.
28. Allocate (verb) - To distribute resources or funds for a specific purpose.
• Example: - The government will allocate funds for infrastructure development.
29. Forecast (verb) - To predict or estimate future trends, especially in terms of economic
conditions.
• Example: - Economists use various models to forecast economic growth.
30. Monetize (verb) - To convert assets or services into currency or legal tender.
• Example: - Content creators often seek ways to monetize their online platforms.
 31. Subsidize (verb) - To provide financial support or assistance, especially from the government.
• Example: - The government may subsidize certain industries to stimulate growth.
32. Import (verb) - To bring goods or services into a country from abroad for sale or trade.
• Example: - The country imports raw materials for its manufacturing industry.
33. Export (verb) - To send goods or services to another country for sale or trade.
• Example: - The company plans to export its products to new international markets.

Idioms
34. Cutting corners (idiom) - Finding a cheaper or quicker way to accomplish a task, often at the
expense of quality.
• Example: - The company faced financial difficulties and started cutting corners to reduce
production costs.
35. The bottom line (idiom) - The ultimate result or crucial factor, especially in financial terms.
• Example: - When making business decisions, it's essential to consider the bottom line
and long-term profitability.
36. Cooking the books (idiom) - Manipulating financial records or accounts to present a false or
misleading picture.
• Example: - Auditors discovered that the company had been cooking the books to show
higher profits.
37. In the red (idiom) - Operating at a financial loss; having negative balances.
• Example: - The business was consistently in the red, prompting the need for
restructuring.
38. Golden handshake (idiom) - A generous severance or retirement package offered to an
employee, often as an incentive to leave.
• Example: - After years of service, the CEO received a golden handshake upon retirement.
39. To tighten one's belt (idiom) - To reduce spending and live more frugally, especially during
difficult economic times.
• Example: - During the recession, many families had to tighten their belts to make ends
meet