economy

 
Pronunciation: /ɪˈkɒnəmi/

noun (plural economies)

  • 1the state of a country or region in terms of the production and consumption of goods and services and the supply of money: he favours tax cuts to stimulate the economy
  • a particular system or stage of an economy: a free-market economy
  • 2 [mass noun] careful management of available resources: fuel economy
  • [as modifier] offering good value for money: an economy pack of soap flakes
  • sparing or careful use of something: a technique based on economy of effort
  • [count noun] (usually economies) a financial saving: there were many economies to be made by giving up our London offices
  • 3 (also economy class) the cheapest class of air or rail travel: we flew economy

Phrases

economy of scale

a proportionate saving in costs gained by an increased level of production: mergers may lead to economies of scale

economy of scope

a proportionate saving gained by producing two or more distinct goods, when the cost of doing so is less than that of producing each separately.

Origin:

late 15th century (in the sense 'management of material resources'): from French économie, or via Latin from Greek oikonomia 'household management', based on oikos 'house' + nemein 'manage'. Current senses date from the 17th century