CMA Foundation · Fundamentals of Business Economics and Management · Utility, Wealth, Production
In economics, which one of the following is NOT regarded as a characteristic that a thing must possess to be counted as wealth?
A free gift of nature available in unlimited quantity is not a characteristic of wealth. Wealth requires utility, scarcity and transferability. Something abundant without limit, like open-air, lacks scarcity and so commands no exchange value, which means it is not counted as wealth in economics.
- AUtility
- BScarcity
- CTransferability
- DBeing a free gift of nature available in unlimited quantityCorrect
Explanation
For something to be wealth it must have utility, be scarce (limited in supply relative to wants) and be transferable from one person to another. Air in open spaces is a free gift of nature available in unlimited quantity and has no scarcity, so it is not wealth. The other three are standard characteristics.
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