Question

For a commodity to be called wealth, must possess ______.

Options

• utility

• value

• transferability

• All of these

Answer 1

For a commodity to be called wealth, must possess all of these.

Explanation:

For a commodity to be called wealth, it must possess the following characteristics:

• Utility: It must have the power to satisfy human wants.
• Value: It must have money value or be scarce in supply relative to demand.
• Transferability: It must be capable of being transferred from one person to another.

If a commodity lacks even one of these characteristics, it cannot be classified as wealth.

For example, sunshine has utility but is not scarce or transferable, hence not wealth.

Similarly, a degree has utility and scarcity but is not transferable, so it is not wealth.

Therefore, a commodity must have utility, value and transferability to be considered wealth.