Archives: Terms

Definition of Over-Stimulation Over-stimulation in economic contexts refers to a scenario where the economy is provided with too much stimulus, often in the form of governmental monetary or fiscal policies, leading to unintended negative consequences. These can include inflation, asset bubbles, or unsustainable economic growth. Over-stimulation occurs when the government […]

Definition of Outside Money Outside money refers to assets that serve as a form of currency outside the banking system and are considered an external source of net wealth to the economy. Primarily, it includes forms of money not created within the private sector, such as physical currency (coins and […]

Definition of Output per Hour Worked Output per hour worked, often referred to as labor productivity, measures the efficiency of labor in terms of the amount of goods and services produced per hour worked. This metric is used to assess the productivity level of an economy, an industry, or a […]

Definition of Output Method The output method is an approach used to measure the economic value of goods and services produced within an economy over a specific period. This method calculates the gross domestic product (GDP) by summing up the market value of all final goods and services produced. It […]

Definition of Output Effect The output effect refers to the change in total production that occurs in response to a change in price levels of goods and services within an economy. This concept is particularly relevant in the context of economies of scale and market competition. When prices change, they […]

Definition of the Origin Principle of Taxation The Origin Principle of Taxation is a concept in international tax law where taxes are levied based on where a product or service is produced or where the economic activity generating the income occurs, rather than where the product is consumed or where […]

Definition of Organized Sector The organized sector refers to that part of the economy that is governed by formal rules and regulations, and where activities are monitored by the government. Businesses within the organized sector are officially registered and comply with the government’s standards for employment, work conditions, and wages. […]

Definition of Organized Labour Organized labour refers to the collective grouping of workers, often in the form of labor unions, for the purpose of exerting greater bargaining power and negotiating better terms of employment, such as wages, work hours, and working conditions. The primary aim of organized labour is to […]

Definition of Organizational Slack Organizational slack refers to the excess resources within an organization that are not immediately necessary for operations but can be used to respond to unforeseen opportunities or challenges. These resources can be financial, such as surplus budget allocations or reserves; physical, like additional production capacity; or […]

The Organization of Petroleum Exporting Countries (OPEC) is a consortium consisting of 13 countries: Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela. Established in Baghdad, Iraq on 14 September 1960, OPEC’s mission is to coordinate and unify the petroleum […]