Animal Spirits The Key Force Behind Economics Explained

3983 reads · Last updated: December 3, 2025

"Animal Spirits" is a term in economics first introduced by British economist John Maynard Keynes in his 1936 book, "The General Theory of Employment, Interest, and Money." Keynes used this term to describe the impact of human emotions on economic decision-making, particularly in the realms of investment and consumption.In economics, animal spirits refer to the confidence, emotions, and psychological states of consumers and investors, which influence their economic behaviors. For example, when consumer and investor confidence is high, they are more likely to spend and invest, thus driving economic growth. Conversely, when confidence is low, they may cut back on spending and investment, leading to economic slowdown or recession.

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Intrapreneur
An intrapreneur is an employee who is tasked with developing an innovative idea or project within a company. The intrapreneur may not face the outsized risks or reap the outsized rewards of an entrepreneur; however, the intrapreneur has access to the resources and capabilities of an established company.
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Intrapreneur

An intrapreneur is an employee who is tasked with developing an innovative idea or project within a company. The intrapreneur may not face the outsized risks or reap the outsized rewards of an entrepreneur; however, the intrapreneur has access to the resources and capabilities of an established company.

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Ultimogeniture

Ultimogeniture, also known as postremogeniture or junior right, is a system of inheritance whereby the youngest son gains possession of his deceased father's estate. Many rural areas of medieval England used this system, as well as parts of France. It often applied to farmland, but sometimes included other types of land in addition to personal property.This system is very rare today. On the contrary, primogeniture, which means inheritance by a firstborn son, is slightly more common today. Historically, primogeniture has been the most prevalent inheritance system.

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Anchoring And Adjustment

Anchoring and adjustment is a phenomenon wherein an individual bases their initial ideas and responses on one point of information and makes changes driven by that starting point. The anchoring and adjustment heuristic describes cases in which a person uses a specific target number or value as a starting point, known as an anchor, and subsequently adjusts that information until an acceptable value is reached over time. Often, those adjustments are inadequate and remain too close to the original anchor, which is a problem when the anchor is very different from the true answer.

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Predatory Pricing

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Green Monday

Green Monday is one of the retail industry's busiest shopping days, It represents the day many shoppers rush to purchase last-minute holiday gifts and take advantage of deals. Green Monday occurs on the second Monday of every December. The term Green Monday was reportedly created eBay (EBAY) as a way to represent the rush of last-minute online shoppers along with "the value and savings" the site offers its users.

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