Q.Write a short note on: Wealth

Wealth in economics means goods that possess utility, are scarce and are transferable, and so command value in exchange. It is not merely money; it includes all valuable material goods. Free goods such as air and sunshine, being unlimited, are not wealth.

Meaning

In ordinary language wealth means money, but in economics it has a wider and more precise meaning. Wealth refers to all those goods and assets which have economic value, that is, which can be exchanged for money or other goods.

Characteristics of wealth

To be called wealth, a good must possess three essential features:

• Utility: It must be capable of satisfying a human want.
• Scarcity: It must be limited in supply relative to its demand; a free good available in unlimited quantity, like air, is not wealth.
• Transferability: Its ownership or possession must be capable of being transferred from one person to another. …