Question

Discuss the qualitive difference between an economy's "wealth" and "income". (world banks wealth report 2018)

Answer 1

Wealth is nothing but the net worth of an economy where the total wealth is the net assets of it minus the net liabilities. The income of an economy might vary from it as it tells about the amount generated in return to the goods produces and services offered by the country all in all. Usually the income measurement is done on the basis of a particular time interval such as annually etc. But it is not the same as wealth as every activity effects the wealth both in the short as well as the long run.