Absolute (Money) Price

One-Shot Inflation A one-time increase
in the price level; an increase in the price
level that does not continue.
Open Economy An economy that trades
goods and services with other countries.
Open Market Operations The buying and
selling of government securities by the Fed.
Open Market Purchase The buying of
government securities by the Fed.
Open Market Sale The selling of government securities by the Fed.
Opportunity Cost The most highly
valued opportunity or alternative forfeited
when a choice is made.
Optimal currency Area A geographic
area in which exchange rates can be fixed or
a common currency used without sacrificing
domestic economic goals, such as low unemployment.
Option A contract that gives the owner the
right, but not the obligation, to buy or sell
shares of a stock at a specified price on or
before a specified date.
Overvalued A currency is overvalued if its
price in terms of other currencies is above
the equilibrium price.
Own Price The price of a good. For
example, if the price of oranges is $1, this is
its own price.
P
Per Capita Real Economic Growth
An increase from one period to the next in
per capita Real GDP, which is Real GDP
divided by population.
Perfect Competition A theory of market
structure based on four assumptions: (1)
There are many sellers and buyers; (2) sellers
sell a homogeneous good; (3) buyers and
sellers have all relevant information; (4)
entry into or exit from the market is easy.