Wealth and Income

Wealth is a stock of goods existing at a given time that has a money value. It represents stored up facilities for the satisfaction of human wants. Economists have represents stored up facilities for the satisfaction of human wants. Economists have outlined utility, scarcity, marketability and external possession of man to be the fundamental attributes of wealth.

Income, on the other hand is a flow of goods and services yielded by wealth. In other words, wealth is a stock and income is a flow. The orchard of a person is his wealth and the annual production of fruits from orchard is his income. Similarly, the motor can of a person is wealth but what he earns by using it as using it as a taxi is called income.