How is wealth defined in economic terms?

Wealth in economic terms is defined as the value of assets that an individual or entity possesses, minus any liabilities they owe. This definition captures the net worth of a person or organization, emphasizing the ownership of valuable resources such as cash, real estate, stocks, and other financial instruments, while subtracting any debts or obligations that diminish this value.

Assets represent items of economic value that can provide future benefits, while liabilities include all debts or obligations. The difference between these two is what constitutes wealth. This measure focuses on the net accumulation of resources, which reflects an individual's economic status and capacity for consumption, investment, and savings.

The other choices provide concepts relevant to economics but do not accurately define wealth. Earnings represent income flows, goods used for trade relates more to commerce and exchange rather than wealth per se, and government-issued currency signifies a form of monetary supply rather than wealth as a broader concept. Understanding wealth through the lens of net assets versus liabilities provides a clearer picture of an economic agent's financial health.