Various economic theories were proposed to explain the crisis.
Sometimes, “economic” is used to describe the financial prospects of a particular company:
The current business model will not be economic in the long term.
In all cases, however, “economic” refers to money and finances.
Economical (Value for Money)
“Economical” is also an adjective, but specifically refers to “value for money” or “avoiding waste”. For instance, if we were running an understaffed business with a limited budget, we might say:
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We need an economical solution to the personnel problem.
The term “economical” also applies in non-financial situations involving efficient use of resources:
I drive a hybrid because it’s economical on fuel.
So while “economical” often means “value for money,” it can be used to refer to thrifty use of any resource.
Economic or Economical?
While some use these terms interchangeably, in academic writing, it’s crucial to maintain the distinction between “economic” and “economical.” This will ensure clarity, helping you to communicate effectively.
There’s no simple way to remember the difference between these terms, but it can help to think of “economical” as a variation of “economic.”
This way, if “economic” has the general meaning of “pertaining to money,” adding the “-al” gives “economical” the specific meaning of “not wasteful.” Remember: