Give the ‘wealth’ definition of economics.
Answers
Explanation:
Wealth measures the value of all the assets of worth owned by a person, community, company, or country. Wealth is determined by taking the total market value of all physical and intangible assets owned, then subtracting all debts.
Adam Smith, generally regarded as the father of economics, define economics as a science which enquires into nature and causes of wealth of nations.
The main features of wealth definition of economics are:
1) Study of wealth: According to the wealth definition, economics is the study of wealth only. The main object of economics is to examine how people earn wealth and spend it. Wealth has been made the focal point of study in economics by the classical economists.
2) Causes of wealth: Economics seeks to examine causes which lead to an increase of wealth. Wealth can be increased by it production and accumulation.