Definition: In a balanced budget, expenses equal the revenue generated in the same duration. Usually, governments or public sector companies use this term to show their financial position to stakeholders. In a balanced budget, there is no budget surplus or budget deficit. In a budget surplus, expenses are lower than the revenue; in a budget …
Definition: When income exceeds the expenditures in the same duration, it is called a budget surplus. Businesses and governments use this term, but individuals are more likely to use the term “savings.” A budget surplus shows the business is doing well and funds are managed effectively. A budget surplus is a good thing for businesses …
Definition: A budget is an estimated amount for expense and revenue during a specified tenure. Government, businesses, or individuals use budgets to maintain their financial position. Once the budget is estimated, it is evaluated and re-estimated regularly. One way to think of a budget is an organization’s financial strategy for continuing to function, maintaining operations, …
Neoclassical economy says that the scarcity of resources or uneven resource distribution causes conflicts. Participants in the economy compete for a finite supply of resources. Contracts are used to address conflicts of interest, and they require both parties to state their expectations and promises clearly. Contracts protect the interests of all parties concerned and result …