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The term surplus is used in economics for several related quantities. The consumer surplus (sometimes named consumer's surplus or consumers' surplus) is the amount that consumers benefit by being able to purchase a product for a price that is less than they would be willing to pay. The producer surplus is the amount that producers benefit by selling at a market price mechanism that is higher than they would be willing to sell for. Note that producer surplus generally flows through to the owners of the factors of production: in perfect competition, no producer surplus accrues to the individual firm. This is the same as saying that economic profit is driven to zero. Real-world businesses generally own or control some of their inputs, meaning that they receive the producer's surplus due to them: this is known as normal profit, and is a component of the firm's opportunity costs. If the markets for factors are perfectly competitive as well, producer surplus ultimately ends up as economic rent to the owners of scarce inputs such as land. From Wikipedia under the
GNU Free Documentation License  en-1.ce.cn 253px x 380px | 86.50kB [source page] A Chinese customer shows off a handful of hundred yuan notes at a bank in Beijing In contrast to the massive deficit in trade in goods the United States is chalking up a rare surplus in  tutor2u.net 296px x 512px | 4.10kB [source page] is strong the budget position can improve very quickly Equally if there is an economic slowdown there can be a rapid deterioration in the government s financial position From deficit to surplus reasons for the turnaround Sustained economic growth Real GDP rose by over 20 between 1993 and 2000  fin.gc.ca 255px x 340px | 49.20kB [source page] for the next budget but until savings have been clearly identified it would not be prudent to assume them in the projected surplus for the purpose of budget planning I also want to note that the $5 9 billion surplus expected this year reflects a number of special factors including the $2 6 billion net proceeds realized from the very From Yahoo Image Search: "Economic surplus"  eye-on-immigration.blogspot.com Ralph Edwards hu, 27 Aug 2009 10:00:00 GM For instance, immigrants help provide a great . surplus. of skills in areas like engineering and sewing. This does not only lead to massive and expensive unemployment (and disillusion) among recent immigrants, it also threatens the ...  econolog.net Republished content hu, 27 Aug 2009 14:56:07 GM Economics. Bloggers: The econoblogosphere is taking the world by storm, it seems. The latest to draw attention to these bloggers is the Kauffman Foundation, with a new 20-minute video featuring bloggers including.  dailymarkets.com William Patalon III Mon, 24 Aug 2009 12:45:55 GM Changes in budget projections - whether they result in a . surplus. or a deficit - are often refined as . economic. conditions change. This new projection was necessary because the recession has gone on for so long, causing federal tax ... From Google Blog Search: "Economic surplus"  news.google.com Xinhua Under the existing exchange rate mechanism, the double surplus in the balance of international payments will re-emerge. The increase in foreign exchange ... and more » news.google.com Money Morning Not surprisingly, Japan runs a more or less permanent trade surplus . Under the new Democratic Party of Japan government of Yukio Hatoyama, that may change. ... and more » news.google.com New York Times Surplus - give the people back their money! Dot-com bust - give business a break! 9/11 - go out and spend or the terrorists win! One thing should be clear ... Who's to blame for the deficit? World Magazine Deficit threatens Obama's agenda Denver Post What Would the Deficit Look Like Without Bush? Atlantic Online all 51 news articles » From Google News Search: "Economic surplus" explain why a gallery owner who sells a painting might actually create more economic surplus than the artist? Q. explain why a gallery owner who sells a painting might actually create more economic surplus than the artist? Asked by AJ A - Wed Jan 30 21:23:54 2008 - - 1 Answers - 0 Comments A. What, you mean off of your one painting or as a whole from everything he sells. Either way, they are in the buisness of making money, but it is a buisness, if you dont like the arrangment you can choose to take it somwhere else. Answered by frankie3215 - Thu Jan 31 05:55:35 2008 What are some current economic indicators in reference to these questions? Q. (1) Cite an instance in which a surplus of a product led to decrease prices. What eventually happened? (2) Cite an instance in which a shortage led to increased prices. Asked by jkrickettt - Tue Jul 1 07:20:42 2008 - - 1 Answers - 0 Comments A. 1. Oil glut of the 1980s. Oil was only $20 a barrel (compared to $147 record high yesterday.) What eventually happened was that the oil industry went bust, because it cost them more to drill than the product was worth. With limited domestic drilling operations, we became dependent on foreign oil. Now they can raise their price and get whatever they want for it. 2. How many people stood in line or paid exorbitant prices to buy a Wii or some other "must have" game? When there are only so many (Cabbage Patch kids, Furbys, Tickle Me Elmos) to go around, parents will pay almost *any* price to get that toy for their kid. Answered by Connie - Tue Jul 1 07:36:36 2008 How do I answer these questions on Economic issues?
Q. Extra credit for my econ class. Where do I find good resources to form an intelligent opinion on these issues? 1. list arguments in favor of and against protectionism. are you in favor of free trade or protection? Explain why. 2. Strong dollar results in trade surplus and weak dollar results in trade deficit." Do you agree with this statement? If not, how do you correct it? Explain your answer. 3. What is the importance of multinational corporations today? What are the reasons for their existence? Explain. 4. What is wrong with our social security system? How could you solve the crisis? Thanks! Asked by jenny s - Thu Jul 12 02:10:55 2007 - - 2 Answers - 0 Comments A. 2. A strong dollar does not create a trade surplus. its the other way around. when the dollar is strong we will tend to import more because the dollar can buy more. when the dollar is weak we will export more because we cant buy as much. Answered by ansq - Thu Jul 12 03:41:17 2007 From Yahoo Answer Search: "Economic surplus" |
