Multiple choice

Which of the following statements is correct?

  1. Robbins has made economics as a form of welfare economics

  2. The law of demand is always true

  3. All capital is wealth but all wealth is not capital

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Capital refers to wealth that is used to produce more wealth, such as machinery, buildings, and tools. All capital is indeed wealth because it has economic value, but not all wealth qualifies as capital - for example, a painting owned for personal enjoyment is wealth but not capital. Robbins defined economics as the science of scarcity and choice, not welfare economics.

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