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 is a subset of wealth - all capital is wealth, but not all wealth is capital. Capital refers specifically to produced means of production (machinery, tools, buildings) used to produce other goods and services. Wealth includes anything that has value and can be exchanged - including consumer goods, money, and land - which are not necessarily used for production.

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