Wealth refers to

Question

Wealth refers to

Quizplus · Accepted Answer

Wealth refers to the total stock of assets that an individual or household possesses. It includes all forms of assets, such as financial assets (e.g. bank deposits, stocks, bonds), real assets (e.g. real estate, cars, jewelry), and human capital (knowledge, skills, and abilities that can generate income). The size and make of one's car (B) and the value of stocks and bonds in a brokerage account (D) are components of wealth, but they do not represent the entirety of one's wealth. The flow of assets (A) refers to changes in asset holdings over time, while wealth refers to the stock of assets at a particular point in time. Human capital (C) is a component of wealth, but it is not the only factor.

Wealth Refers to