Advertisements
Advertisements
Question
Distinguish between stock and flow variables with suitable examples.
Solution
| Basis of Difference | Stock Variables | Flow Variables |
| Definition | A stock variable is measured at a particular point in time. For example, the bank balance as of October 01, 2010 is Rs 5000. | A flow variable is measured over an interval of time. For example, interest earned on bank deposits for 1 year, i.e., from October 01, 2009, to September 30, 2010. |
| Time Element | They do not have an element of time attached to them | They have an element of time attached to them, such as 1 year, 6 months, 10 days, etc. |
| Nature | These are static in nature. | These are dynamic in nature. |
| Examples | Capital, Bank deposits, Water in a tank. | Capital formation, Interest on capital, Water flowing in a stream. |
APPEARS IN
RELATED QUESTIONS
Define stocks.
Giving reasons categories the following into stock and flow:-
(i) Capital
(ii) Saving
(iii) Gross domestic product
(iv) Wealth
Define flows.
Distinguish between stock and flows. Give an example of each.
Distinguish between stocks and flows. Give two examples of each.
Define flow variables.
Distinguish between stock and flow. Between net investment and capital, which is a stock and which is a flow? Compare net investment and capital with flow of water into a tank.
Define the following: Flow Variables
Real flow is the flow of ____________.
Increase in Stock of Capital is known as:
Which of the following is stock?
Which one of the following is included in ‘Stock’?
Which one is included inflow?
Which of the following is not flow?
