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Indicate whether the following statement is true or false: All capital is wealth - Economics

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Question

Indicate whether the following statement is true or false:

All capital is wealth

True or False
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Solution

This statement is true.

Explanation:

  • Capital is that part of wealth which is used for further production of income.
  • Wealth includes all goods that have value and capital is a subset of wealth used in the production process.
  • While all capital is wealth, not all wealth is capital.
  • Examples and characteristics from your file clarify this distinction, confirming that all capital qualifies as wealth but not vice versa.
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Chapter 3: Basic Concepts of Economics - QUESTIONS [Page 50]

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J. P. Goel and Kaushal Goel Economics [English] Class 9 ICSE
Chapter 3 Basic Concepts of Economics
QUESTIONS | Q 11. (a) | Page 50
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