Economic Theory Terminology

adjective showing extreme unwillingness to spend money or use resources

adverb in a parsimonious manner

• The company's parsimonious approach to spending has helped them maintain profitability during tough economic times.
• My dad is so parsimonious, he always insists on using coupons whenever we go out to eat.
• I can't believe how parsimonious my roommate is - he never chips in for household expenses.
• Her parsimonious attitude towards sharing knowledge with others only serves to hinder progress in the team.

noun an economic theory and practice that promotes governmental regulation of a nation's economy for the purpose of increasing state power and building wealth through exports

• Mercantilism was an economic theory that dominated European trade policies in the 16th to 18th centuries.
• Back in the day, mercantilism was all about maximizing exports and accumulating wealth.
• Some people think mercantilism is just a fancy word for old-school capitalism.
• In the world of business, some still cling to the outdated principles of mercantilism.

noun a derogatory term for economic theories or practices considered to be misguided or flawed

• The concept of voodoo economics refers to the economic theories that are considered unrealistic or overly optimistic.
• Some people believe that voodoo economics is just a fancy term for wishful thinking.
• I don't buy into that voodoo economics nonsense - it's all smoke and mirrors.
• His plan to boost the economy seemed like a form of voodoo economics, promising big results with little substance.

noun a principle in economics that suggests that an increase in demand for goods will lead to an increase in production to meet that demand

• The acceleration principle states that an increase in demand for goods will lead to an even greater increase in investment.
• According to the acceleration principle, when people want more stuff, businesses invest more to make it.
• The acceleration principle basically says that when people start buying more, companies start making more.
• Just like a snowball rolling downhill, the acceleration principle shows how demand can quickly build upon itself.