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प्रश्न
Indicate whether the following statement is true or false:
Wealth and capital mean the same thing
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उत्तर
This statement is false.
Explanation:
Wealth refers to all things that have money value and possess characteristics such as utility, scarcity, transferability and externality. It includes all goods and assets that can satisfy human wants.
Capital, on the other hand, is that part of wealth which is specifically used for further production of income or wealth.
Capital includes man-made goods that assist in production, like machinery, tools, raw materials, etc., and excludes wealth that is not used productively.
Thus, while all capital is wealth, not all wealth is capital. For example, shares of a company are wealth, but the dividend received on them is income generated from capital.
Also, intangible things like abilities or degrees are wealth in some senses but not capital since they don‘t assist in production directly.
Therefore, wealth and capital are related but do not mean the same thing.
