IELTS Vocabulary for Basic Economic Topics
Why This Page Is Helpful
Many IELTS students say things like:
- “The government gives money.”
- “Prices are going up.”
- “Some people are poor.”
These answers are too simple. To get Band 6 or higher, you need to:
- Use clear vocabulary
- Explain ideas with examples
- Show basic understanding of economics
Key Vocabulary
1. Government Support (Subsidy)
- BrE: /ˈsʌb.sɪ.di/
- AmE: /ˈsʌb.sə.di/
Definition: Money provided by a government to help lower the cost of goods or services, usually to support the public or businesses.
Easy explanation: When the government gives money to help make things cheaper, like food or transport.
Example: “Government support for buses and trains helps reduce travel costs for people.”
2. Price Rise (Inflation)
- BrE: /ɪnˈfleɪ.ʃən/
- AmE: /ɪnˈfleɪ.ʃən/
Definition: A rise in the prices of goods and services over time, which reduces how much people can buy with their money.
Easy explanation: When things become more expensive, and money doesn’t go as far.
Example: “Inflation makes food and rent more expensive for everyone.”
3. Taxes (Taxation)
- BrE: /tækˈseɪ.ʃən/
- AmE: /tækˈseɪ.ʃən/
Definition: The system where governments collect money from people and businesses to pay for public services.
Easy explanation: The money people pay to the government to help run schools, hospitals, and roads.
Example: “Taxation allows the government to provide free healthcare and education.”
4. Income Inequality
- BrE: /ˈɪn.kʌm ˌɪn.ɪˈkwɒ.lə.ti/
- AmE: /ˈɪn.kʌm ˌɪn.əˈkwɑː.lə.t̬i/
Definition: A situation where some people earn much more money than others, creating unfair differences in living standards.
Easy explanation: When some people have a lot of money and others have very little.
Example: “Income inequality can cause problems in society, like less trust and more stress.”
5. GDP (Gross Domestic Product)
- BrE: /ˌɡrəʊs dəˌmes.tɪk ˈprɒ.dʌkt/
- AmE: /ˌɡroʊs dəˌmes.tɪk ˈprɑː.dʌkt/
Definition: The total value of all goods and services a country produces in a year, used to measure economic health.
Easy explanation: The amount of money a country makes from business and work.
Example: “If GDP goes up, it usually means the economy is doing well.”
Mini Practice
Question: Why do some people worry about rising prices?
Band 6 Answer:
“Because of price rise, people cannot buy the things they need. It’s harder for poor families.”
Question: What can the government do to help poor people?
Band 6 Answer:
“The government can give money or support to help them buy food or get jobs.”
Conclusion
In this lesson, you learned how to:
- Talk about money and jobs in a simple and clear way
- Use five useful economic words
- Answer questions with short examples
Keep practicing! Even basic ideas can become strong when you use the right vocabulary and explain why.
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