Written by the Fiveable Content Team • Last updated September 2025
Verified for the 2026 exam
Verified for the 2026 exam•Written by the Fiveable Content Team • Last updated September 2025
Definition
An economist is a professional who studies the production, distribution, and consumption of goods and services to understand how individuals and societies allocate resources.
Related terms
Supply and Demand: The relationship between the availability of a product or service (supply) and the desire for it (demand), which influences its price.
Opportunity Cost: The value of the next best alternative that must be forgone when making a decision. It represents what you give up in order to choose something else.
Factors that motivate individuals or organizations to take certain actions. In economics, incentives can include rewards or penalties that influence behavior.