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Definition of consumer surplus?
Consumer surplus - the difference between what a consumer is willing to pay and what they actually pay. Aggregate consumer surplus measures consumer welfare
Why is reserves and surplus a part of liabilities?
reserves and surplus are shown into liability side of the financial statiment, since reserve is the money set aside from the capital for future use hence defining surplus as a debit in the business thus attributing to its liabiltiness,
The link between a balance of payments surplus and rising foreign exchange reserves?
A balance of payments surplus occurs when a country's exports and financial inflows exceed its imports and financial outflows, leading to an accumulation of foreign currency. This surplus results in rising foreign exchange reserves, as the central bank purchases the excess foreign currency to stabilise the local currency and manage inflation. Consequently, increased foreign exchange reserves can enhance a country's ability to withstand economic shocks and boost investor confidence. Thus, a balance of payments surplus directly contributes to the growth of foreign exchange reserves.
How do you calculate cost of reserves and surplus?
To calculate the cost of reserves and surplus, you typically assess the opportunity cost associated with holding reserves instead of investing them in profitable ventures. This can be done by estimating the expected return on alternative investments and comparing it to the returns generated by the reserves. Additionally, you can consider factors like inflation and the cost of capital to determine the effective cost. Ultimately, the cost of reserves and surplus reflects the potential income foregone by not utilizing those funds for growth-oriented activities.
Difference between provision and reserve?
Provisions are charge against profit and Reserves are appropriation of profit.
What are reserves and surplus in finance?
What is reserve & surplus in accounts
What is the entry for reserves and surplus?
entries for Reserve & surplus
What is net loss reserves to surplus ratio?
The net loss reserves to surplus ratio is a financial metric used in the insurance industry to assess the adequacy of an insurer's reserves relative to its surplus. It is calculated by dividing the net loss reserves (the funds set aside to pay future claims) by the surplus (the difference between assets and liabilities). A lower ratio indicates a stronger financial position, suggesting that the insurer has sufficient surplus to cover potential claims, while a higher ratio may signal potential financial strain. Monitoring this ratio helps regulators and stakeholders gauge the insurer's risk management and financial health.
The difference between what the workers produce and what they earn is surplus value?
Surplus value is the difference between the value that workers produce and what they are paid in wages.
What is customer surplus and producer surplus?
Consumer surplus is the difference between the maximum amount a person is willing to pay for a good and its current market price. Producer surplus is the difference between the current market price and the full cost of production for the firm.
Consumer surplus and producers surplus?
Consumer surplus - the difference between what a consumer is willing to pay and what they actually pay. Aggregate consumer surplus measures consumer welfare. Producer surplus - the difference between what a producer is willing to sell their product for and what they actually receive. Aggregate producer surplus measures producer welfare
What is the difference between a surplus and a deficit?
A surplus is more than needed, a deficit is a shortage or loss
What is the difference between oil reserves and oil deposits?
Oil Reserves are big and oil deposits are small.
What is the difference between energy deficit and energy surplus?
Surplus energy is an excess amount and deficit is not enough energy
What is the difference between delegated reserves and concurrent powers?
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What is the difference between marketable surplus and marketed surplus?
The principal difference is time perspective: marketable surplus is produce that a farmer currently has on hand to take to market to earn a profit, while marketed surplus is what she has already taken to market to earn a profit.
What did Marks call the difference between what the workers produce and what they earn?
Surplus.
