23 Words That Mean Something Entirely Different To Economics Majors

Chris Kolmar
by Chris Kolmar
Guides - 2 years ago
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1. Production possibilities frontier

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What it means to everyone else: The next big feature on an iPhone.
What it means to econ majors: Optimal.

2. Sunk costs

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What it means to everyone else: The price of getting to wreckage at the bottom of the ocean.
What it means to econ majors: Information that shouldn’t impact your next decision.

3. Normal distribution

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What it means to everyone else: When professors decide to grade on a curve.
What it means to econ majors: A bad assumption.

4. Producers’ surplus

What it means to everyone else: What farmers sell at a farmers’ market.
What it means to econ majors: There’s a market here.

5. Risk

What it means to everyone else: A game for nerds.
What it means to econ majors: An awesome game for nerds and something to hedge against.

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6. Indifference curve

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What it means to everyone else: The choice between Christina Aguilera and Brittney Spears.
What it means to econ majors: Optimizing the correct amount of Christina Aguilera and Brittney Spears to maximize happiness.

7. Oligopoly

What it means to everyone else: Something they learned in history class.
What it means to econ majors: The reason oil prices are far too high.

8. Shutdown price

What it means to everyone else: The winning bid on Ebay.
What it means to econ majors: A price so low no firm can operate.

9. Microeconomics

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What it means to everyone else: Really small financing.
What it means to econ majors: Understanding why individuals make the choices they do.

10. Marginal utility

What it means to everyone else: How much the electric bill costs next month.
What it means to econ majors: homo economicus

These Are The 10 Best First Jobs For Economics Majors

11. Present value

What it means to everyone else: Finding out how much your family loves you on your birthday.
What it means to econ majors: Properly understanding the value of a dollar today vs a dollar tomorrow.

12. Error term

What it means to everyone else: What they got wrong on their term paper.
What it means to econ majors: + e

13. Natural log

What it means to everyone else: Fuel for the camp fire.
What it means to econ majors: The percentage change.

14. Multivariable function

What it means to everyone else: Deciding what to do this weekend.
What it means to econ majors: The way econometrics describes everything.

15. Elasticity

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What it means to everyone else: Stretchy yoga pants.
What it means to econ majors: Why the over crowded restaurant should raise prices.

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16. Fixed Costs

What it means to everyone else: Next months rent.
What it means to econ majors: Don’t contribute to marginal cost.

17. Expected value

What it means to everyone else: The price of gasoline going up.
What it means to econ majors: Why you know to never play the lottery.

18. Deadweight Loss

What it means to everyone else: The result of diet and exercise.
What it means to econ majors: Why you should only ever give someone money for a present.

19. Point of diminishing returns

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What it means to everyone else: The 5th beer.
What it means to econ majors: The 5th beer.

20. Z score

What it means to everyone else: Over 5000!
What it means to econ majors: Getting published.

21. Bayesian probability

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What it means to everyone else: You misspelled BeyoncĂŠ.
What it means to econ majors: How new information shapes your previous assumptions.

22. Economics

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What it means to everyone else: Boring.
What it means to econ majors: Understanding how people make choices under constraints.

23. Monopoly

What it means to everyone else: The worst board game ever made.
What it means to econ majors: $$$.