Vocabulary blog - Economy

Hi everyone!

Today, I’ll discuss some vocabulary related to the economy. You may be familiar with some of these from the news, so don’t hesitate to study more from economic news or newspaper articles.

Economy

• bailout (n.)

- the act of giving money to an organization or a foreign country to help with its financial problem (e.g. Greece has received bailouts from EU countries and the IMF.)

• capitalism (n.)

- an economic system based on private ownership of capital rather than government control (e.g. Capitalism focuses on a free market and individual rights to create prosperity.)

• consolidate (v.)

- to combine things (e.g. The three companies have been consolidated for more capital and investment.)

• deflation (n.)

- a reduction of the general price level of goods or the amount of money in a country’s economic system (e.g. Deflation increases the purchasing power of money.)

• inflation (n.)

- an increase in general price level of goods or the amount of money in a country’s economic system (e.g. Wage rate should be adjusted  to match with current inflation.)

• depression (n.)

- a period when the economy declines and many people are unemployed (e.g. The Great Depression happened in the 1930s.)

• downturn (v.)

- a decline in economic activities (e.g. Many countries around the world have been recently facing an economic downturn.)

• fraudulent (adj.)

- aiming to cheat somebody (e.g. They made fraudulent claims for damages.)

• monopoly (n.)

- the complete control of trade of particular products or services (e.g. In the past, the government had a monopoly on public transportation.)

• subprime (adj.)

- related to the situation where the borrowed money is unlikely to be paid back (e.g. The subprime mortgage was one of the biggest economic problems in the U.S. in the past few years.)

That’s all for today. Hope you learned some new words! See you next time for more words. Bye!