Wealth is the stock of goods and services existing in a country at a particular time which have money value.
Characteristics of Wealth
- It must possess utility. I.e: It must be capable of yielding satisfaction.
- It must have money value. I.e: Marketable.
- Wealth is transferable. I.e: It can be transferred from one person’s place to another.
- Wealth is scarce. I.e: Limited in supply relative to demand.
- Wealth has opportunity cost.
TYPES OF WEALTH
- Personal Wealth
These are things which belongs to individuals. Eg: Dresses, houses, cars etc.
- Business Wealth
These are things which belong to business units or assets which are directly used in production. Eg: Factory buildings, raw materials etc.
- Social or Communal Wealth
These are things which are collectively owned by the state or local authority. Eg: Government schools, hospitals, public libraries, bails etc.
WEALTH AND WELFARE
Wealth refers to the living standard of the people in a society at a given time.
Welfare is the level at which people is a given society are able to satisfy their wants. Welfare measured in terms of the quality of goods and services which average consumers are able to buy. Generally, wealth indicates welfare, the greater the wealth of the nation, the higher the standard of living because they have more goods and services to consumers. The reserve is true.
