Question

Write any two points of differences between wealth and capital.

Answer 1

Two points of difference between wealth and capital are:

1. All valuable goods are considered wealth, but capital is that part of wealth which is used in the production process. In other words, capital is a subset of wealth specifically used for producing more goods or services.

2. While all capital is wealth, all wealth is not capital. Wealth includes all goods that have value, whereas capital specifically refers to man-made goods used in production.