What is Wealth?
In ordinary language, “Wealth” conveys an idea of prosperity and abundance. A man of wealth understood as a rich person. But in Economics Wealth is synonymous with economic goods.
In short, Wealth means anything which has value.
Therefore, three attributes of wealth as in the case of value are utility, scarcity and marketability. Good which is able to satisfy human want, which is scale and must be transferable, is wealth.
It should be noted that
Money is form of wealth. All money is wealth but all wealth is not money.
Income is different than wealth. Wealth yields income.
Wealth and welfare are closely inter-related. Wealth is the means and welfare and end.
Classification of Wealth: Wealth can be classified as
Individual Wealth: Material possession like land, building cash etc.
Personal Wealth: refers to personal qualities like intelligence, skill etc.
Social Wealth: They are things owned by society e.g. building dams, road etc.
National Wealth: They are the natural resources like rivers, climate, oceans etc.
Cosmopolitan Wealth: It is wealth of the whole word. It is a sum total wealth of all nationals.
Negative Wealth: It refers debts owned by individual of Govt.