12 terms were found starting with the letter o.

Official Exchange Rate

The rate at which the government will buy and sell the domestic currency in terms of a foreign currency such as the U.S. dollar. Countries with floating exchange rates typically do not have any official exchange rate; the government leaves the determination of the exchange rate to the market.

Oligopoly

A market for a good or service in which the decisions of at least one of the sellers have an impact on the market price. The limiting case of an oligopoly is a monopoly.

Oligopsony

A market for a good or service in which the decisions of at least one of the buyers have an impact on the market price. The limiting case of an oligopsony is a monopsony.

Open Access Good

A good that is rival but nonexcludable. A good is rival if one person’s consumption of that good reduces the quantity available for consumption by someone else. A good is nonexcludable if it is not possible to prevent someone from consuming that good once it has been made available to the public.

Open Access Resource

A natural resource having the characteristics of an open access good, namely, that it is rival but nonexcludable. A good is rival if one person’s consumption of that good reduces the quantity available for consumption by someone else. A good is nonexcludable if it is not possible to prevent someone from consuming that good once it has been made available to the public.

Opportunity Cost

The value of resources used in a consumption or production activity if they had been used in the next best alternative instead. The opportunity cost is essentially what must be forgone in order to consume or produce a particular good or service.

Option Value

An economic value placed on an environmental or natural resource because people want to preserve the option of using the resource in the future, above and beyond any expected value attached to the future use of the resource.

Organization for Economic Cooperation and Development (OECD)

An international organization composed of 30 industrialized, market-economy countries. Representatives from member countries meet periodically to exchange information and harmonize policy.

Organization of Petroleum Exporting Countries (OPEC)

A cartel of major oil exporting countries set up in 1960. Currently consists of 11 members. Reached the height of its power in 1973 with an oil embargo directed at the U.S. and other countries and a subsequent quadrupling of oil prices.

Over-Quota Tariff

For a country with a tariff rate quota (TRQ) system for a particular commodity, the tariff applied on imports over the quota. The tariff on imports within the quota is referred to as the in-quota tariff.

Overvalued Exchange Rate

Occurs when a country sets the value of its currency – the official exchange rate – at a level higher than the level that would prevail if there were a free market in foreign exchange.

Own-Price Elasticity of Demand

The percentage change in the consumption of some good or service in response to a 1% increase in the price of that good or service.