Archives: Terms

Definition of Shortage A shortage in economics refers to a situation where the demand for a good or service exceeds its supply in the market. This discrepancy arises when consumers are willing and able to purchase a product at the current price, but producers are unable or unwilling to supply […]

Definition of Short-Time Working Short-time working refers to a labor arrangement where employees work reduced hours or days compared to their usual full-time schedule. This reduction in working hours typically occurs due to economic downturns, decreased demand for products or services, or other financial difficulties faced by an organization. As […]

Definition of Short-Termism Short-termism refers to the excessive focus on short-term results at the expense of long-term interests. This often happens in businesses and financial markets where leaders and investors prioritize immediate gains over sustainable growth and the long-term health of the organization. It can manifest in various ways, such […]

Definition of the Short-Run Phillips Curve The Short-Run Phillips Curve illustrates the inverse relationship between inflation and unemployment in the short run, holding the expected rate of inflation constant. This curve suggests that, in the short term, policymakers can choose between lower unemployment with higher inflation or higher unemployment with […]

Definition of Short-Run Marginal Cost Short-Run Marginal Cost (SRMC) refers to the change in total production cost that occurs when producing an additional unit of output, while considering that some production factors are fixed in the short run. It is the cost of producing one more unit of a good […]

Definition of Short-Run Cost Curve The short-run cost curve represents the relationship between the production costs and the quantity of output produced within a time period where at least one factor of production is considered fixed. This concept is integral to understanding how firms make production decisions in the short […]

Definition of Short-Run Capital Movements Short-run capital movements refer to the flow of financial capital between countries for the purpose of making short-term investments. These movements typically involve investments that can be easily liquidated or moved within a short period, such as investments in foreign stocks, bonds, and money market […]

Definition of Short-Dated Security A short-dated security is a financial instrument that has a short time until maturity, typically less than one year. These instruments are issued by governments, corporations, or financial institutions and are often considered low-risk due to their short duration. Common types of short-dated securities include Treasury […]

Definition of Short Selling Short selling is a trading strategy that allows investors to profit from the decline in the value of a security, such as stocks or bonds. In short selling, an investor borrows shares of a stock from a broker and sells them at the current market price. […]

Definition of Short Position A short position is a trading strategy where an investor sells a security that they have borrowed in anticipation that the asset’s price will decline. The objective of holding a short position is to buy back the borrowed security at a lower price, thus profiting from […]