QUESTION
Answer the following:
Explain the features of wealth?
SOLUTION
The features of wealth are as follows:
Utility: The commodities that have the capacity to satisfy human wants are included in wealth. For example, furniture, refrigerator, etc.
Scarcity: The commodities Which are limited (scarce) in supply in relation to their demand are included in wealth. For example, all economic goods for Which prices are paid are wealth.
Transferable: The commodities which are transferable are included in wealth. It should be possible to transfer commodities from one person to another person and from one place to another place. For example, vehicles, jewellery, etc.
Externality: The commodities that are external to the human body are included in wealth, for example, bag, chair, goodwill of a company. etc. are external to the human body and therefore are wealth.
