Compare and contrast the terms wealth and income.?

Question

Compare and contrast the terms wealth and income.?

Answer 1

Think wealth as human need in its broadest sense. I define economics as study of nature, composition, laws, properties and classification of wealth or in simple words chemistry of wealth. If one classifies wealth into two broad categories, say, wants consisting of goods and services and means consisting of money and money related forms of wealth that are measured or expressed in units of money, Income becomes a means form of wealth because it is measured in money terms and it is means to satisfy wants.

Answer 2

make me

Answer 3

In economics, income is defined as the rent, wages, or other types of compensantion given to individuals in the resource market from businesses in exchange for such resources (labor, land, etc).  Also, in the macroeconomic sense this includes transfer payments from the government to individuals.

Wealth can be various things.  It could describe the amount of resources owned by an individual.  In terms of supply and demand, whenever there is an effective price floor or ceiling in place, there will usually be a wealth transfer from consumers to producers or vice-versa.  This refers to the surpluses (the difference between the price paid and the amount you are willing to pay or the difference between the price and what you are willing to sell for) each had before the policies.

Hopefully this helped, unfortunately, economics can be more easily understood graphically and we can't draw here.  I also apologize for the grammar, I usually just throw commas out there because I want to just finish the answer quickly.

Answer 4

Wealth refers to one's assets:  Cash, real estate, investments, personal property, etc. that one currently posesses.

Income refers to gaining wealth:  How much new wealth one obtains over a given period would be one's income.

So your wealth is how much money you have, and income is how quickly you are increasing that wealth.