CMA Foundation · Fundamentals of Business Economics and Management · Utility, Wealth, Production
Which of the following is an example of 'social wealth' rather than purely individual (personal) wealth?
Public assets like a park, a government hospital and national highways are social wealth because they belong to the community or the State collectively. A privately owned car, jewellery or shares belong to individuals, so they are classified as individual or personal wealth.
- AA car owned by Mr. Sharma
- BGold jewellery owned by Mrs. Iyer
- CA public park, a government hospital and national highways of a countryCorrect
- DShares held by Mr. Gupta in a listed company
Explanation
Social (collective) wealth consists of assets owned by the community or the State, such as parks, hospitals and highways. The car, jewellery and shares are all privately owned, so they are individual wealth. Note that each individual item is still wealth, but only the public assets are collectively owned.
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