Surplus value

Surplus value is a type of money that a business earns when it makes something. A business buys different materials it needs to make a product, like steel and rubber to make a car and then sells the car for more than it cost to buy the materials and make the car. The difference between the cost of the materials and what the company sells the car for is called the surplus value. This extra money gives the company more money to hire more workers and buy more materials, so it can make more cars and make more money.