What is a shortage?
Economic terms are used everywhere. Consider one of them, namely, what is the deficit. Deficiency is a condition in which expenditures far exceed income.
The following are other meanings of this concept.
Deficiency is ...
So, to put it briefly, the deficit is:
- lack of or significant lack of something;
- very limited quantity of goods or cash.
Types of deficit in the economy
- commodity, called the shortage of supply - is the excess of total demand over total supply;
- budget - the excess of the level of expenditure of funds over deductions;
- balance - the percentage of imports exceeds the percentage of exports;
- balance of payments - the excess of spending money over income. This phenomenon is sometimes called passive balance;
- lack of a specific resource or a necessary production factor.
There are the following types of budget deficit.
- Cyclic - a decrease in business activity, leading to a significant reduction in tax revenues.
- Structural - a positive or negative budget balance in the presence of a natural degree of unemployment, the usual level of GDP, as well as compliance with the rate of transfer payments. The reason for this deficit is the wrong fiscal policy.
Types of deficiency in medicine
This term is used in medicine:
- pulse deficit is the excess of the number of heart contractions over the pulse;
- neurological deficiency is a disease of the human CNS;
- deficiency of substances necessary for the body, for example, potassium, magnesium and some vitamins.
Now you know what a deficiency is, and you can correctly apply this concept.