How Do You Spell ECONOMIC SURPLUS?

Pronunciation: [ˌiːkənˈɒmɪk sˈɜːpləs] (IPA)

Economic surplus is spelled as /ˌiːkəˈnɒmɪk ˈsɜːpləs/, with stress on the second syllable of each word. The IPA phonetic transcription breaks down the sounds and syllables of each word. The first syllable in 'economic' is pronounced as /i/ (as in 'see'), followed by /kə/ and /nɒmɪk/. The 'surplus' part of the word is spelled as /sɜːpləs/, with stress on the second syllable. This refers to the surplus amount that arises when demand for a product or service exceeds supply, resulting in surplus production that can be sold for a profit.

ECONOMIC SURPLUS Meaning and Definition

1. Economic surplus refers to the positive difference between the value individuals are willing to pay for a good or service and the actual price they pay in a given market. Also known as consumer surplus or economic welfare, this surplus represents the net gain or benefit gained by consumers when they are able to purchase a good or service at a price lower than what they were willing to pay.

   The concept of economic surplus is based on the principle that individuals have different valuations and preferences for a given product. When the actual price of the product is lower than what consumers are willing to pay, they experience a surplus. This surplus can be quantified by calculating the difference between what consumers were willing and able to pay, and what they actually paid.

   Economic surplus does not only apply to consumers but can also be observed for producers. When the actual price of a good or service is higher than the cost of production, producers receive a surplus. This surplus represents the additional profit earned by producers due to the higher price.

   Overall, economic surplus indicates the overall welfare and economic benefit of a market transaction. It represents the value created when there is a match between consumer demand and producer supply, resulting in a situation where both parties experience a surplus.

Etymology of ECONOMIC SURPLUS

The word "economic" is derived from the Greek word "oikonomia", which means "household management" or "administration of a household". It combines the terms "oikos" (meaning "house") and "nomos" (meaning "law" or "management").

The term "surplus" has its origins in Latin, deriving from the word "superplus", which means "remaining" or "excessive". It is a combination of the prefix "super-" (meaning "over" or "above") and the word "plus" (meaning "more").

When combined, the term "economic surplus" refers to the excess or additional value generated in an economy, where the output or benefits exceed the input or costs. It is a concept commonly used in economics to describe the positive difference between what is produced and what is necessary for production or consumption.