Wealth

• According to Forguson, “all material and non-material goods which have a market value are called wealth”.
• It is stock of all things which have a market price.
• Bonds, shares, cars, houses, land are wealth.
• Sometimes, knowledge or skills also referred to as wealth if these are used to earn some income but, in economics, these are actually human capital.

Types of Wealth

Private wealth: saving income in durable form by individuals

Government wealth: revenue collected and use to built roads, bridges, communication

Natural wealth: minerals, soils

Capital

All goods which can produce income when used in production are called capital

Thus, all capital is wealth, but, all wealth is not capital