What is the surplus
In order to understand the economic analyzes of experts in the field, as well as economic news at a general level, it is very important to know what they refer to when they use basic terminology. Since a word may not have the same meaning in an article of a sporting or economic nature. One of the most used is the economic surplus, which we explain in this article of .com
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What is the economic surplus
The term of economic surplus is used when, in an economic account of any kind we have in which income and expenses determined over time, revenues are greater than expenses.
The amount of surplus that we have is therefore the difference of how many are the income with respect to the expenses incurred. It is a term understood in a positive way , since this means that we can finance our expenses with the money that we have, and that we also have to spare.
When the term economic surplus is used
The term economic surplus is used in the economy continuously, since there are many types of accounts that collect the amount of income and expenses that have been had, either in a country, in a locality or in a company. Some of the typical accounts where we can have surplus (or deficit, depending on the circumstances) are:
- Capital account (at country level)
- Current account (country, business or personal level)
- Financial account (at country level)
- Balance of payments (country level)
- Cash flows (normally country or business level)
- Any other type of accounts in which money inflows and outflows are calculated
