Question

The "Wealth of a Nation" can be best described as:

• A. The amount of forex reserves with the central bank of the economy
• B. The amount of gold in the domestic economy
• C. The productive capacity of the economy
• D. The amount of goods and services produced in the economy

Answer 1

The correct option is C

The productive capacity of the economy

Adam Smith described the wealth of nations as the productive capacity of nations to produce goods and services.