What are stock variables in economics?
A stock variable is a quantified variable that is measured at a particular point of time. Since, stock of capital, total money supply, and number of persons employed are a quantities measured at a particular point of time, these are stock variables.
Is investment a stock or a flow variable?
Investment is a stock variable since, at any one point in time, there is a fixed amount. Investment can get to be measured…
What is stock and flow with examples?
The concept of stock and flow is mainly used while computing the national income of a country. For Example: While savings is stock, investment is a flow, the distance between two places is a stock, but the speed of the vehicle is a flow. Similarly, income is a flow, whereas wealth is a stock.
What is the difference between the concept of stock and flow variables in macroeconomics?
Difference Between GDP and GNP….Difference between stock and flow.
| Stock | Flow |
|---|---|
| Definition | |
| Stock is defined as a variable that is measured at a particular point in time | Flow is defined as a variable which is measurable over a period of time |
| Time Dimension | |
| Stock does not have a time dimension attached with it | Flow has a time dimension attached with it |
What is flow variable in macroeconomics?
A flow variable is a variable that is measured over a specific period of time. A stock variable is a variable that is independent of time. Income is an example of a flow variable.
What is stock and flow in macroeconomics?
Thus, a stock refers to the value of an asset at a balance date (or point in time), while a flow refers to the total value of transactions (sales or purchases, incomes or expenditures) during an accounting period. Capital is a stock concept which yields a periodic income which is a flow concept.
What is the flow variable in macroeconomics?
What is flow and stock variables?
A flow variable is a variable that is measured over a specific period of time. A stock variable is a variable that is independent of time. Income is an example of a flow variable. To say one’s income is, for example, $1,000 is meaningless without a time dimension.
What is the difference between stock and flow variables write down examples?
A stock variable is measured at a particular point of time. For example, bank balance as on 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.
Which is a stock variable?
Stock variable is defined as a variable which is measured at a particular point of time. Stock is not time dimensional. It influences the flow. Example: wealth, capital, etc.
What is flow variables and stock variable?
A flow variable is a variable that is measured over a specific period of time. A stock variable is a variable that is independent of time.
What is flow in macroeconomics?
A flow is a quantity which is measured with reference to a period of time. Thus, flows are defined with reference to a specific period (length of time), e.g., hours, days, weeks, months or years. It has time dimension. National income is a flow.