Surplus facts for kids
A surplus happens when you have more of something than you actually need or want. It's like having extra cookies after everyone has had enough, or more toys than you can play with!
This idea of having "extra" can apply to many different things, from money to products in a store.
Contents
What is a Budget Surplus?
A budget is a plan for how you will spend your money. Governments, businesses, and even families have budgets.
When a Government Has Extra Money
When a government collects more money (from taxes, for example) than it spends, it has a budget surplus. This means they have extra money left over. They might use this extra money to pay off debts, save for the future, or invest in new projects like building schools or roads.
On the other hand, if a government spends more money than it collects, it has a budget deficit. This means they don't have enough money and might need to borrow some.
What is a Product Surplus?
Imagine a toy store that orders 1,000 robot toys, but only 500 customers want to buy them at the usual price. The store would have 500 extra robot toys. This is a product surplus.
Supply and Demand
In economics, this happens when the supply (how much of a product is available) is greater than the demand (how much customers want to buy). When there's a surplus of a product, businesses might lower the price to encourage more people to buy it. This helps them sell off the extra items.
Surplus in Movies
The word "surplus" can also be used in other ways. For example, Surplus is the name of a 2003 Swedish documentary movie. It talks about how people consume (buy and use) too many things, leading to a "surplus" of stuff in the world.
See also
In Spanish: Superávit para niños
