Answer the following
1) Explain the features of wealth.
Ans. Wealth must possess the following characterstics:
(a) A commodity which is called wealth must have utility, ie. the power to satisfy human wants e.g. umbrealla, car, furniture, etc.
(a) Commodity must be scarce in supply as compared to its demand, if it is to be included in the term ‘wealth’.
(b) Free goods like air, sunlight are not regarded as wealth as their supply is abundant.
(a) Physical Transferability – Commodity must be transferable from person to person or place to place.
(b) Notional Transferability – Some goods have notional transferability, e.g. land is transferred by changing right of ownership.
(iv) Externality: Commodity should be external to human body, e.g. bag, chair. Wealth Should not be internal, e.g. beauty is not wealth.
2) Explain the characteristics of human wants.
Ans: Want can be refered to as a need, following are the characteristics of wants.
i) Wants are Unlimited:
(a) According to Robbins, human wants are unlimited.
(b) It we satisfy one want second arises when that is satisfied next one grows.
(c) Thus it becomes a chain of wants which has no end.
(ii) Wants are recurring in nature:
(a) Human wants are not only unlimited but they are recurrent in nature i.e.
(b) Wants arises again and again.
(iii) Wants Differ with age:
Wants differ from physical age. Eg. wants of the childern differ from an elderly person.
(iv) Wants differ with gender:
Wants of the men and women are different.
(v) Wants depends on preference of the people:
Human wants depends on habits, tastes and preferences of the people.