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The model of supply and demand describes how prices vary as a result of a balance between product availability and demand. It's fundamental in microeconomics and serves as the backbone of market economies.

Comparative advantage theory suggests that countries should specialise in the goods they can produce most efficiently and trade for others, benefiting all parties. This is foundational in international trade theory.

Keynesian Economics emphasizes the total spending in the economy (aggregate demand) and its effects on output and inflation. It was the basis for the fiscal policies in the 20th century to counter recessions.

Monetarism focuses on the role of governments in controlling the amount of money in circulation. Monetarists believe that variations in the money supply have major influences on national output in the short run and the price level over longer periods.

The Efficient Market Hypothesis posits that stocks always trade at their fair value, making it impossible for investors to either purchase undervalued stocks or sell stocks for inflated prices. It suggests that it's impossible to 'beat the market' consistently.

Game theory is a framework for understanding and designing strategic situations where an individual's success in making choices depends on the choices of others. It's essential in economics for modeling competing behaviors of market agents.

Pareto efficiency is a state of allocation of resources where it is impossible to make any one individual better off without making at least one individual worse off. It's a concept used to evaluate economic efficiency and equity.

The Phillips Curve is an economic theory that suggests an inverse relationship between the rate of unemployment and the rate of inflation in an economy. This has implications for economic policy and inflation targeting.

Rational Expectations Theory posits that individuals and firms make decisions optimally, using all available information. It sophisticates analyses in macroeconomics, arguing against the effectiveness of systematic monetary and fiscal policy.

Human Capital Theory is the perspective that individuals invest in their own education and training as they would in any asset, aiming to increase future income potentials. It stipulates a correlation between personal investment in education and economic growth.

Endogenous Growth Theory holds that investment in human capital, innovation, and knowledge are significant contributors to economic growth. The theory argues that improvements in productivity can lead to sustainable economic growth without the need for outside factors.

Exogenous Growth Theory, or the Solow-Swan model, states that technological development is an external factor that drives long-term economic growth, independent of economic forces and largely unexplained by the model.

The IS-LM model, or Hicks-Hansen model, represents the interaction of the 'Investment-Saving' (IS) curve with the 'Liquidity Preference-Money Supply' (LM) curve, and is used to analyze the effects of fiscal and monetary policy on interest rates and output.

The Heckscher-Ohlin model emphasizes that countries have comparative advantages in producing goods that use intensively the factors of production they have in abundance. It's a core concept in international economics regarding trade patterns.

The Gini Coefficient measures income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality). It's utilized by economists to analyse distribution of income or wealth.

The Principal-Agent Problem arises when a principal hires an agent to perform duties that involve a conflict of interest between the two. Asymmetric information leads to suboptimal decisions known as 'agency costs'.

Transaction Cost Economics explores how economic transaction costs influence the structure of firms and markets. It explains why firms exist and how they determine the most cost-effective means of conducting business.

Moral hazard occurs when an entity has an incentive to increase its exposure to risk because it doesn't bear the full cost of that risk. It is often discussed in the context of insurance and financial systems.

Adverse Selection refers to a situation where sellers have information that buyers don't, or vice versa, about some aspect of product quality. It's a problem commonly found in markets where asymmetric information is present.

A Nash Equilibrium is a concept in game theory where no player can benefit by changing their strategy while the other players keep theirs unchanged. It's used to predict the outcome of strategic interactions where multiple decision makers interact.

The Tragedy of the Commons explains how individuals acting independently according to their self-interest can ultimately destroy a shared natural resource, even when it's clear that it's not in anyone's long-term interest for this to happen.

The Herfindahl-Hirschman Index is a measure of market concentration and is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers. It's used to detect the potential for monopoly power.

The Laffer Curve illustrates the relationship between tax rates and tax revenue collected by governments. The curve suggests there can be a point where raising taxes further becomes counter-productive for raising further tax revenue.

The Ricardian Equivalence posits that government budget deficits don't affect the total level of demand in the economy, as people predict future taxes and save to pay for them, neutralizing deficit spending impacts.

Gross Domestic Product measures the market value of all final goods and services produced within a country in a given period. It's a core indicator of a country's economic performance.

The Multiplier Effect is the proportionate increase in final income that results from an injection of spending. In other words, it's the expansion of a country's money supply that results from banks being able to lend.

The Quantity Theory of Money states that the general price level of goods and services is directly proportional to the amount of money in circulation. Its formula is often expressed as $MV = PY$ where M is the money supply, V is the velocity of money, P is the price level, and Y is the output.

Real Business Cycle Theory posits that cyclical fluctuations within an economy are the result of real shocks, like changes in technology or increases in the price of oil as opposed to monetary shocks. It suggests the economy can be described using a neo-classical growth model.

The Permanent Income Hypothesis states that consumers will spend money according to their expected long term average income. This means current income changes may not affect spending if perceived as short-term.