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Economic theory: meaning, definitions and examples

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economic theory

[ ˌiːkəˈnɑːmɪk ˈθɪəri ]

Noun

^{Context #1 | Noun}

study of

Economic theory is the study of how societies use resources to produce and distribute goods and services. It provides a framework for understanding the behavior of individuals, businesses, and governments in relation to the economy.

Synonyms

economic model, economics.

Which Synonym Should You Choose?

Word	Description / Examples
economic theory	This term is used when discussing abstract principles that explain how economies operate, often involving mathematical or logical deductions. Keynesian economic theory emphasizes the role of government intervention. Economic theories often guide policy decisions.
economics	Economics is the broad discipline that deals with the production, distribution, and consumption of goods and services. It includes both theory and practical applications. She's studying economics at university. Economics examines both micro and macroeconomic factors.
economic model	Economic models are simplified representations of economic processes used to explain and predict economic behavior. They often use mathematical formulas and can be more practical than theories. The supply and demand model helps to understand price levels. Economists use economic models to forecast inflation rates.

Word

Description / Examples

economic theory

This term is used when discussing abstract principles that explain how economies operate, often involving mathematical or logical deductions.

Keynesian economic theory emphasizes the role of government intervention.
Economic theories often guide policy decisions.

economics

Economics is the broad discipline that deals with the production, distribution, and consumption of goods and services. It includes both theory and practical applications.

She's studying economics at university.
Economics examines both micro and macroeconomic factors.

economic model

Economic models are simplified representations of economic processes used to explain and predict economic behavior. They often use mathematical formulas and can be more practical than theories.

The supply and demand model helps to understand price levels.
Economists use economic models to forecast inflation rates.

Examples of usage

Economic theory helps economists analyze the impact of policies on the economy.
Studying economic theory can help us predict how changes in government regulations will affect businesses.

Translations

Translations of the word "economic theory" in other languages:

🇵🇹 teoria econômica

🇮🇳 आर्थिक सिद्धांत

🇩🇪 Wirtschaftstheorie

🇮🇩 teori ekonomi

🇺🇦 економічна теорія

🇵🇱 teoria ekonomiczna

🇯🇵 経済理論

🇫🇷 théorie économique

🇪🇸 teoría económica

🇹🇷 ekonomik teori

🇰🇷 경제 이론

🇸🇦 نظرية اقتصادية

🇨🇿 ekonomická teorie

🇸🇰 ekonomická teória

🇨🇳 经济理论

🇸🇮 ekonomska teorija

🇮🇸 hagfræðikenning

🇰🇿 экономикалық теория

🇬🇪 ეკონომიკური თეორია

🇦🇿 iqtisadi nəzəriyyə

🇲🇽 teoría económica

Etymology

The history of economic theory can be traced back to ancient civilizations, where thinkers like Aristotle and Plato discussed economic principles. However, modern economic theory as we know it today began to develop in the 18th century with the works of Adam Smith, David Ricardo, and others. Since then, economic theory has evolved significantly, with various schools of thought such as Keynesian economics, neoclassical economics, and behavioral economics shaping the field.