What does the term "surplus" refer to?

The term "surplus" refers to a situation where there is an excess of something, usually in the context of resources, goods, or finances. In economic terms, a surplus occurs when the quantity supplied of a product exceeds the quantity demanded at a given price, leading to an excess available for sale. In budgeting, a surplus indicates that revenue is greater than expenses, allowing for additional funds to be allocated or saved.

Understanding this concept helps in various fields, including economics, accounting, and resource management, as it signifies a positive condition where more is available than is needed, allowing for growth, investment, or strategic planning. The clarity of this definition differentiates it from other terms such as deficiency, which suggests a lack of something, equivalence, which denotes equality, and balance, which indicates stability between two or more sides.