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Question
Differentiate between:
Capital and wealth
Solution
| Capital | Wealth |
| Capital refers to real capital, e.g., machines, factories, buildings, etc., which is further used in the production of other goods and services. | Wealth refers to all economic goods which are scarce and command some price. |
| Only that part of wealth (consisting of producer goods) is called capital. | Not all wealth can be considered capital. |
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