"Factor Analysis in Economics" is a specialized book that focuses on the application of factor analysis in the field of economics. It aims to promote the use of this method in economic research and to emphasize its significance for the development of economic sciences. The book comprehensively covers the objectives and applications of factor analysis, the underlying principles, as well as the methods and procedures necessary for conducting factor analyses. It also addresses the practical application of this analysis in various areas of economics, management, and public policy. The authors have made an effort to replace complex mathematical concepts with simple illustrations to facilitate understanding. This book is highly beneficial for both students and educators at universities and contributes to the professionalization in the areas of policy formulation, decision-making, and theory validation.