Question

Indicate whether the following statement is true or false: 

B.A. degree is wealth

Answer 1

This statement is false.

Explanation:

• For something to be called wealth, it must have four characteristics: utility, scarcity, transferability and externality possession or ownership capability.
• B.A. degree does have utility and scarcity, but it lacks transferability because it cannot be transferred or sold to another person.
• Therefore, B.A. degree cannot be considered wealth since it fails the transferability criterion.
• Similarly, personal abilities such as those of a teacher or doctor are not wealth because they are not transferable, even though they have utility and scarcity.

Hence, B.A. degree is not wealth in economic terms.