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  • Importance of Precise Economic Definitions for Common Terms

  • Stock (Economics)

Wealth

Wealth represents the stock of valuable items, or assets, owned by an entity, minus any debts, representing its net worth at a point in time. While the term is sometimes used more broadly to include non-material assets such as health, skills, and earning ability (human capital), its typical economic definition, and the one used here, refers to material wealth. Material wealth consists of assets that can potentially be converted into spending on goods and services, and it is a key determinant of well-being as its components can generate future income or provide direct services.

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The Economy 1.0 @ CORE Econ

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Introduction to Microeconomics Course

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