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Class : 11
Unit : Economics

What are the Characteristics/Features of wealth definition.

Ans : The characteristics or features of wealth definition are as follows: i) Study of wealth:- The definition given by Adam smith assumed that economics is only concerned with the study of wealth. Wealth is only against which can fulfill the desire of human beings in the society. It deals with production, consumption exchange and distribution of wealth. ii) Nature of wealth:- These definition has included only material goods. Material goods are those goods which are tangible such as pen, book, pencil, gold, silver etc. The non- material goods like doctor service, teacher service etc. have been excluded from the definition of wealth. iii) Source of wealth:-The wealth definition assume that wages earned by labors are only the source of income of a nation. Adam smith suggested that active laborer can earned a high amount of wages throw division of labor. It increases the productivity and distribution of goods and services. iv) Secondary place to mankind:- This definition has given primary place to study of wealth and secondary place to study of man. According to Adam smith, ” Mankind is for wealth but wealth cannot be for mankind. v) Study of economic man:- Adam smith assume that economics studies the behavior of that person whose main objective is to earn more and more money, which is known as economic man.
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