Civil Engineering Reference
In-Depth Information
opportunity cost of capital
The normal rate of return or the amount that must be
paid to an investor to induce him or her to invest in a business. Economists
consider the opportunity cost of capital as a cost of production.
optimism bias
A measure of the extent to which actual project costs (and project
duration) might exceed the original estimates.
Organisation for Economic Cooperation and Development (OECD)
The OECD
publishes many economic commentaries each year. It produces data allowing
international comparison of economic and environmental indicators. Based in
Paris, the OECD's members comprise all the major capitalist countries, including
Australia, Japan, the United States, Canada and western European nations.
Organisation of Petroleum Exporting Countries (OPEC)
This is a consortium of
13 petroleum producing nations. The organisation was formed in 1960 to
control oil supply and prices. It is an example of a cartel.
output approach
A way of measuring national income (see gross national product)
by adding up the value of the output produced by each sector of the economy.
partnering
A broadly defined term to describe a situation in which two or more
organisations work openly together to improve performance by agreeing
mutual objectives and ways for resolving any disputes. See also public-private
partnership and strategic partnering.
per capita
A Latin phrase meaning per head of the population.
perfect competition
A market structure in which the decisions of buyers and sellers
have no effect on market price.
perfectly competitive firm
A firm that is such a small part of the total industry
picture that it cannot affect the price of the product it sells.
perfectly elastic
A supply or demand curve characterised by a reduction in quantity
to zero when there is the slightest increase or decrease in price. Producers and
consumers are completely responsive to any change of price.
perfectly inelastic
The characteristic of a supply or demand curve for which quantity
supplied remains constant, no matter what happens to price. Producers and
consumers are completely unresponsive to price changes.
planning curve
Another name for the long-run average cost curve.
planning gain
A trade-off agreement between a local authority and developer that
permits the developer to build in return for some compensatory benefits to the
community. A common example involves the provision of social housing as an
integral part of a proposal for a commercial housing development.
planning horizon
Another name for long-run cost curves. All inputs are variable
during the planning period.
planning regulations
Each local authority has plans on how its area will develop
and a body responsible for deciding what is allowed to be built. The terms of
reference are determined by centrally produced planning policy guidance notes.
polluter pays principle
A strategy based on market incentives to assure that those
who pollute are encouraged to reduce the costs that fall on society. The principle
was succinctly set out in 1987 by the Secretary of State for the Environment:
'The polluter must bear the cost of pollution.'
