Category: Economics Terms

Consumer surplus is the amount of money that consumers are willing to pay for a good or service minus the amount of money they actually have to pay. In …

A contestable market is a market in which companies can enter or exit the market without facing significant barriers. In a contestable market, there are…

Consumer Theory is a branch of economics that deals with how people make decisions when it comes to spending their money. It looks at how people choose …

Consumption is a key concept in economics and is often thought of as the most basic unit of economic activity. Consumption refers to the spending of mon…

The concentration ratio is a measure of the degree to which an industry or sector is controlled by a small number of firms. It is calculated as the sum …

Cross elasticity of demand is an economics term that refers to the relationship between two products’ prices and the effect that change in one product’s…

Consumer sovereignty is the ability of consumers to choose what they want to buy, and how much they want to spend on it. This concept is based on the id…

In economics, “consumer choice” is the process that consumers use to make choices about what products and services they want to buy. The process of cons…

Consumer confidence is defined as an individual’s optimism about the future state of the economy. This optimism is based on a number of factors, includi…

The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods …

In economics, Cournot competition is a model of competition named after French economist Antoine Augustin Cournot (1801–1877) in which competing firms c…

Cultural economics is the study of economics as it relates to culture. It encompasses a wide range of topics, from how economics affects our everyday li…

Creation economics is a term that refers to the process and study of how economic systems create wealth. This can be done through a variety of means, bu…

Cost-push inflation is when the price of goods and services goes up because the cost of the things used to make them has gone up. For example, if the pr…

In economics, contract theory is the study of how economic actors can and do construct efficient contracts. This theory was first developed by Nobel Lau…

The Cost-of-Production Theory of Value is the most widely accepted theory of value in economics. It states that the value of a good or service is based …

Cost underestimation is a widespread problem in economics. It occurs when planners or decision-makers underestimate the cost of a project or venture. Th…

A cost curve is a graphical representation of the relationship between production costs and the quantity of output produced. The cost curve can be used …

A contract curve is a graphical representation of the set of possible combinations of two agents’ utility functions that can lead to a Pareto efficient …

Computational economics is a subfield of economics that uses computational methods to analyze economic problems. Computational economics includes the us…

A complementary good is a good that is used in conjunction with another good. For example, bread and butter are complementary goods because you need bot…

Complexity economics is a branch of economics that looks at how economic systems function when they are made up of interacting agents. These agents can …

A compensating differential is an economic term that refers to the difference in wages between two jobs. The purpose of a compensating differential is t…

Competition law, also known as antitrust law, is a body of laws designed to promote fair competition for the benefit of consumers. The main purpose of c…

Comparative advantage is an economic theory that describes the potential benefits of trade between two countries. The theory is based on the idea that e…

Comparative statics is a method used in economics to compare the differences in economic outcomes that result from changes in policy or other variables….

The Comprehensive Income Policy Agreement is an economic policy agreement between two countries that establishes a common set of rules and regulations f…

Community-based economics is a term that is used to describe a variety of economic models which emphasize local economic development and community invol…

The Cobweb model is an economics model that describes how a market might reach equilibrium when there are periodic price changes. The model was develope…

Collective action occurs when a group of people works together to achieve a common goal. This can be done through formal organizations, such as unions o…

Comparative dynamics is the study of how economic systems change over time. It is concerned with understanding the factors that drive economic growth an…

Collusion is defined as an agreement between two or more people to defraud or deceive someone. In economics, collusion takes place when companies or ind…

The Coase theorem is a proposition in economics that asserts that if parties to a dispute have complete information about one another’s preferences, and…

Classical economics is a school of thought that emphasizes the role of the market in the allocation of resources and the distribution of income. It is b…

The Coase conjecture is an economic theory that suggests that when two parties are involved in a dispute, they will reach an agreement if they can negot…

The classical general equilibrium model is a theoretical framework that attempts to explain the behavior of prices, output, and economic growth in an ec…

Civil engineering is the branch of engineering that deals with the design, construction and maintenance of the physical and natural built environment. I…

Circuitism is an economic theory that posits that an economy functions like an electrical circuit, and that money is the flow of electricity that drives…