Economic Theory Concepts

noun a convex shape or surface

adjective having a surface or boundary that curves or bulges outward, as opposed to concave

• The convex shape of the lens focuses light onto the retina.
• The mirror is kind of convex, so it makes things look bigger.
• That convex curve is really cool, it gives the room a modern vibe.
• Her smile created a convex curve on her face, showing her happiness.

noun the quality or state of being futile; ineffectiveness; uselessness

• The scientist's research proved the futility of trying to cure the disease with current methods.
• It's a waste of time to argue with him, it's like trying to teach a fish to climb a tree.
• Don't bother studying for that test, it's a total lost cause.
• Her attempts to change his mind were like trying to stop a speeding train with a feather.

noun a sum of money distributed by a government to its citizens with the aim of stimulating the economy

• The concept of helicopter money involves the direct distribution of money to citizens by the government.
• Some people believe that helicopter money could help boost the economy by putting more cash in people's hands.
• I heard that some politicians are talking about just giving out helicopter money to everyone.
• In times of economic crisis, policymakers may consider using helicopter money as a last resort to stimulate spending.

noun the act of selling something at a significantly lower price than its actual value due to urgent need or financial difficulties

• The economic downturn led to a rise in distress selling of assets by struggling companies.
• When times get tough, some people resort to distress selling to make quick cash.
• I heard John had to do some distress selling to cover his bills.
• In a panic, she resorted to distress selling her prized possessions to make ends meet.

noun Moral hazard is a term used in economics and finance to describe the risk that one party may act in a way that is not in the best interest of another party because the first party does not bear the full consequences of their actions.

• The presence of moral hazard in the insurance industry can lead to increased fraudulent claims.
• When people know they're protected by insurance, they might take more risks - that's moral hazard.
• If you're always bailing out your friend, you're just enabling their moral hazard.
• Ignoring the warning signs of moral hazard is like playing with fire in a dry forest.

noun a belief or theory that a particular country, society, or institution is exceptional and therefore does not need to conform to normal rules or principles

• American exceptionalism is the belief that the United States is unique and superior to other nations.
• Some people think American exceptionalism is just a fancy way of saying the US is the best.
• American exceptionalism is like thinking the US is the GOAT of countries.
• In the world of politics, American exceptionalism is a powerful tool used to assert dominance on the global stage.