Definition of Wealth in Economics

definition of wealth in economics

You can find definition of wealth in economics that will help you to understand it online or in the library. The problem is that finding too many definitions from different sources can sometimes make things more confusing than helpful. For that matter, help with economics homework service provider has prepared a guide on what to know about the definition of wealth in economics.

Short History of the Term Wealth

Wealth measures the value assets or worth that is owned by an individual, company, country or community. It is determined by taking the total market value of all the intangible and physical assets owned, and then by deducting all the debts from the results.

General Information about Wealth

Maybe you’re asking, “What is wealth in economics” and here is the answer. Wealth is about the accumulation of all resources. For example, organizations, nations and specific people are said to be wealthy when they accumulate a lot of valuable goods or resources.

So what is wealth in economics? Wealth is designed as the collection of things, which are limited in supply as well as useful in human desires. When a valuable or desirable commodity is available to everyone, then the owner of that commodity will possess no potential for the wealth. So when the desirable or valuable commodity is in scarce supply, then the commodity owner possesses excellent potential for wealth. Nevertheless, wealth refers to the accumulation of resources, whether it is abundant or not.

wealth definition

Types of Wealth in Economics Explanation

If you want to know the types of wealth in economics, then keep reading. The following will give you a brief overview about the types of wealth. Also, it will let you learn about the wealth price because you will find out that each of the types is different from one another.

  • Personal wealth: A person’s wealth consists of non-material and material goods. The wealth of that person includes material things, such as houses, machinery, furniture, things and others.
  • Social wealth: It is also known as collective wealth and it consists of goods that can be enjoyed by the members of the society. It includes public parks, public roads, government hospitals, public schools, museums, public libraries and others.
  • National wealth: It includes a person’s wealth and the collective wealth of its members. It includes public properties like canals, parks, buildings, roads as well as water works.
  • Cosmopolitan wealth: It’s the world’s wealth and a common example is an ocean.

Note: Wealth price differs especially when it comes to the types of wealth.

income vs wealth difference

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