ECONOMICS
INCOME DISTRIBUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Is all the things someone owned by someone in their lifetime
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The market value of assets owned by people over their lifetime
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The market value of assets owned by people at a specific point in time
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The number of houses a person has
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Detailed explanation-1: -What Is Wealth? Wealth measures the value of all the assets of worth owned by a person, community, company, or country. Wealth is determined by taking the total market value of all physical and intangible assets owned, then subtracting all debts. Essentially, wealth is the accumulation of scarce resources.
Detailed explanation-2: -In economics, wealth refers to those goods which satisfy human wants. Those goods which are relatively scarce and have money value are termed as wealth.
Detailed explanation-3: -Definition of Wealth – Adam Smith (1776) Adam Smith. “Economics is the science of wealth” This definition was given by Adam Smith. He is also known as the ‘father of economics. According to this definition, economics is a science of the study of wealth only.
Detailed explanation-4: -The central point in Smith’s definition is wealth creation. Implicitly, Smith identified wealth with welfare. He assumed that the wealthier a nation becomes the happier are its citizens. Thus, it is important to find out how a nation can be wealthy. Economics is the subject that tells us how to make a nation wealthy.
Detailed explanation-5: -Financial wealth (money) Social wealth (status) Time wealth (freedom) Physical wealth (health)