Surplus
Surplus is a financial term that refers to the amount of money or assets that remain after all liabilities have been paid. It is the difference between total income and total expenses. A surplus can be used to pay down debt, invest in new projects, or save for future use. It is an important concept in economics and finance, as it can indicate the financial health of an individual, business, or government.
History of Surplus
The concept of surplus has been around since ancient times. In the early days of economics, surplus was used to refer to the amount of goods or services that were produced but not consumed. This concept was later expanded to include money and other assets. In the 18th century, Adam Smith wrote about the concept of surplus in his book The Wealth of Nations. He argued that a nation’s wealth was determined by the amount of surplus it had.
In the 19th century, the concept of surplus was further developed by economists such as John Stuart Mill and Karl Marx. They argued that surplus was an important factor in determining the economic health of a nation. In the 20th century, the concept of surplus was further refined by economists such as John Maynard Keynes and Milton Friedman.
Comparison Table
| Income | Expenses | Surplus |
|---|---|---|
| $10,000 | $8,000 | $2,000 |
| $20,000 | $15,000 | $5,000 |
| $30,000 | $25,000 | $5,000 |
Summary
Surplus is a financial term that refers to the amount of money or assets that remain after all liabilities have been paid. It is an important concept in economics and finance, as it can indicate the financial health of an individual, business, or government. For more information about surplus, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Deficit
- Debt
- Income
- Expenses
- Assets
- Liabilities
- Investment
- Savings
- Economics
- Finance
