e.g. stands for Latin which translates into something like: free example. Think of it as example given. e.g. is to be used when you are giving a small number of examples out of the total set of possibilities. It implies that there are more possibilities
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exempli gratia
eks-EHM-plee GRAH-tee-ah
for instance
This expression, literally "for the sake of example," is always abbreviated e.g. in English. It is used correctly to introduce example, incorrectly to mean "that is." (See id est.)
id est
id est
that is
This scholarly term, abbreviated i.e., is used in identical fashion as its English translation: to clarify a statement just made. The abbreviation i.e. is heard more and more in the speech of those who do not know the Latin phrase--nor even the meaning of the term--so misuse is almost as common as correct use. The most frequent mistake reflects confusion of i.e. with e.g., the abbreviation of exempli gratia, "for example." Perhaps we are better advised to use the English equivalents in place of these abbreviations.
Source: Ehrlich, Eugene. Amo, Amas, Amat and More. Harper & Row, New York, 1985 (hardcover). 1987 (paperback): 122, 147-8.
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