Archives: Terms

Definition of Owners’ Equivalent Rent (OER) Owners’ Equivalent Rent (OER) is a measure used by economists and policymakers to estimate the cost of renting a home that is owner-occupied. It represents the amount of money a homeowner could potentially earn if they were to rent out their property on the […]

Definition of Oversupply Oversupply refers to a situation in a market where the quantity of a good or service supplied exceeds the quantity demanded at a given price. In other words, there is an excess supply of the product in the market, leading to a surplus. Example Let’s consider the […]

Definition of an Overheated Economy An overheated economy refers to a situation in which economic growth becomes unsustainable and leads to high levels of inflation and potentially asset price bubbles. It occurs when the demand for goods and services exceeds the economy’s ability to produce them, leading to an imbalance […]

Definition of Outsourcing Outsourcing refers to the practice of contracting out certain tasks or functions of a company to external service providers, often located in a different country. This means that instead of performing these tasks in-house, companies delegate them to outside firms or individuals who specialize in providing the […]

Definition of Output Gap Output gap refers to the difference between an economy’s actual output and its potential output. It measures the underutilization or excess utilization of resources in an economy. When actual output is greater than potential output, the economy is said to be operating above its capacity, leading […]

Definition of Organized Labor Organized labor refers to a collective group of employees who join together to negotiate wages, working conditions, and other employment terms with their employers. This organization is usually in the form of labor unions or trade unions. The main objective of organized labor is to protect […]

Definition of Organizational Economics Organizational Economics is a branch of economics that studies how firms and organizations are structured and how they make decisions. It combines theories from economics, sociology, and management to analyze the behavior of firms and the relationships between different organizational units. The field focuses on understanding […]

Definition of Organization of the Petroleum Exporting Countries (OPEC) The Organization of the Petroleum Exporting Countries (OPEC) is an international organization consisting of 13 oil-exporting countries. Its primary objective is to coordinate and unify the petroleum policies of its member countries and ensure the stabilization of oil markets. OPEC was […]

Definition of Organisation for Economic Co-operation and Development (OECD) The Organisation for Economic Co-operation and Development (OECD) is an international organization that works to promote policies that improve the economic and social well-being of people around the world. It was founded in 1961 and currently consists of 38 member countries, […]

Definition of Organisation of Eastern Caribbean States (OECS) The Organisation of Eastern Caribbean States (OECS) is an intergovernmental organization that was established in June 1981. It consists of ten member countries, namely Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Anguilla, […]