Question

Mention the characteristics of wealth.

Answer 1

The characteristics of wealth are as follows:

1. Utility: Wealth must have the power to satisfy human wants. Any commodity that does not have utility cannot be called wealth.

2. Scarcity: For a commodity to be considered wealth, it must be scarce in supply relative to demand. Free goods like air and water, which are abundant, are not considered wealth.

3. Transferability: Wealth must have the characteristic of transferability, meaning it can change ownership from one person to another.

4. Externality: To be wealth, a commodity must have an external shape or existence, so it can be transferred. Internal qualities like intelligence or patriotism lack externality and therefore are not wealth.