Opportunity cost is the value of the best thing you must give up when you make a decision. As Rutgers University economist Dr. A. Robert Koch once stated, whether for decisions made by individuals or collectively by society, “there is always an opportunity cost.”

Open-market operations are the buying and selling of U.S. TREASURY SECURITIES by the FEDERAL RESERVE SYSTEM (known as the Fed) to implement MONETARY POLICY. The Fed, through the Federal Reserve Bank of New York, buys and sells securities, primarily U.S. Treasury bills, notes, and BONDS, in order to increase or decrease the financial reserves in the BANKING SYSTEM.

Ombudsmen are people designated in organizations to provide alternative means of resolving problems. Translated as “people’s representative,” the term comes from Old Norse and was first used in 1809, when Sweden established a government ombudsman to serve the needs of the public. While other countries followed Sweden’s example, only in recent years has the use of ombudsmen expanded in American business.

An oligopoly is a MARKET STRUCTURE in which there are BARRIERS TO ENTRY, allowing for only a few firms. Oligopolies occur in those industries in which it is difficult for new competitors to get established. CAPITAL, technology, or LICENSING frequently restricts entry into oligopolistic markets, which can have either standardized or differentiated PRODUCTs.

The primary function of the Office of Management and Budget (OMB) is to prepare the annual U.S. federal budget. The federal budget, over $2.2 trillion in 2003, is approximately 22 percent of all spending in the U.S. economy. Spending and tax recommendations by the OMB are closely watched and influenced by business leaders.

The Office of Government Ethics (OGE), established by the Ethics in Government Act (1978), is a small, executive branch agency created to prevent conflicts of interest on the part of government employees and to resolve conflicts of interest when they occur.