Define wealth. Write any two points of differences between wealth and capital.
Answers
Answer:
Wealth refers to the value of assets you own, these are the assets which have monetary value, like land, house, vehicle, cash etc. in sense of factor of production capital is a bigger term and it includes all the goods, abilities, qualification, experience and knowledge which is used in factor of production.
Answer:
Wealth refers to the value of assets you own, these are the assets which have monetary value, like land, house, vehicle, cash etc. in sense of factor of production capital is a bigger term and it includes all the goods, abilities, qualification, experience and knowledge which is used in factor of production. It is a produced component of production which is earned by humans by using natural resources, it is also called the human ingredient of production. Abilities, the qualification which is used in production have an impact on production as they improve the efficiency and have long term effect on the production process and helps in increasing profit. An employee in the organisation, who are groomed and trained by the organisation, is an asset for the organisation to increase the profit of the organisation, he is part of the capital.