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Question
Mention the characteristics of wealth.
Very Long Answer
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Solution
The characteristics of wealth are as follows:
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Utility: Wealth must have the power to satisfy human wants. Any commodity that does not have utility cannot be called wealth.
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Scarcity: For a commodity to be considered wealth, it must be scarce in supply relative to demand. Free goods like air and water, which are abundant, are not considered wealth.
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Transferability: Wealth must have the characteristic of transferability, meaning it can change ownership from one person to another.
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Externality: To be wealth, a commodity must have an external shape or existence, so it can be transferred. Internal qualities like intelligence or patriotism lack externality and therefore are not wealth.
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