ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If there is a surplus of something, there is more than is needed. Surplus is used to describe something that is extra or that is more than is needed. Few people have large sums of surplus cash.

Detailed explanation-2: -A surplus describes the amount of an asset or resource that exceeds the portion that’s actively utilized. A surplus can refer to a host of different items, including income, profits, capital, and goods. In the context of inventories, a surplus describes products that remain sitting on store shelves, unpurchased.

Detailed explanation-3: -However, a prolonged surplus could cause smaller firms to go out of business and in the long-term, it could lead to increased monopoly power and higher prices.

Detailed explanation-4: -more than is needed, desired, or required. “surplus cheese distributed to the needy” synonyms: excess, extra, redundant, spare, supererogatory, superfluous, supernumerary unnecessary, unneeded. not necessary.