Question

Which of the following falls under National wealth?

• A. Bill of exchange
• B. Rivers
• C. Skill
• D. Buildings

Hint:

To identify national wealth, look for collective, non-excludable natural resources or public infrastructure (such as rivers, forests, mineral deposits, public roads, and railways) that belong to the country as a whole.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
In economics, "wealth" refers to any stock of assets that has exchange value and can generate utility or income.
Wealth is classified into individual wealth, social/communal wealth, and national wealth.
National wealth consists of the total stock of all tangible and intangible assets (both natural and man-made) owned by the nation as a collective whole, which contribute to its economic output.

Step 2: Detailed Explanation:
Let us analyze each of the given options:
1. Bill of exchange (A):
This is a financial instrument representing a debt obligation between two private parties.
While it is an asset for the holder, it is an equal liability for the issuer.
In national accounting, these private financial assets and liabilities cancel each other out, so they are not counted as part of the net national wealth.
2. Rivers (B):
Rivers are a major natural resource owned collectively by the nation.
They supply water for drinking, agriculture, industrial use, and hydroelectric power generation, driving economic development.
Since they are a public, natural asset owned by the country, they are a classic example of National Wealth.
Therefore, this option is correct.
3. Skill (C):
Skill represents individual human capital.
While it is highly valuable, it is an intangible, personal asset that cannot be directly traded or owned by the nation as a collective physical asset.
4. Buildings (D):
While some buildings are public property (and thus part of national wealth), the term "buildings" generally refers to private residential or commercial properties, which are classified as individual or corporate wealth.

Step 3: Final Answer:
Rivers are a natural asset that falls under the category of National wealth.
Therefore, the correct option is (B).