18. 'Income of the family' is the example of which variable?
(a) Stock
(b) Flow
(c) Both stock and flow
(d) Neither stock nor flow
19. Which of the following is not a flow variable?
(a) Income
(b) Capital formation
(c) Supply of money in a country
(d) Leakage of water from the overhead tank
20. Which of the following is a flow variable?
(a) Consumption
(b) Wealth
(c) Quantity of money
(d) None of these
21. Which of the following is a stock variable?
(a) Interest on capital
(b) Distance between Delhi and Manali
(c) Expenditure of money
(d) All of these
22. Flow of goods and services across different sectors of the economy is called:
(a) real flow
(b) circular flow
(c) monetary flow
(d) inventory flow
23. A car running between Delhi and Agra at a speed of 120 km/h includes:
(a) only stock variables
(b) only flow variables
(c) both a stock and a flow variable
(d) none of these
24. Depreciation reserve fund is needed for:
(a) inventory stock
(b) advertisement
(c) replacement investment
(d) none of these
Answers
Answer:
18) It is a flow variable because it is measured during a period of time.
Explanation:
20)National wealth is not an example of flow variable. It is a stock since it is measured at a point of time. National wealth is not time dimensional. It is not measured over a specified period of time like flow. Therefore, national wealth is a stock concept.
21) In the given question Distance from Delhi & Manali is a stock variable all others i.e. Interest on capital and Expenditure of Money are flows.
22) Flow of Goods and services and factors of production across different sectors in a barter economy is known as real flow since there are only exchange of goods and services in the barter economy. Real flow refers to the flow of goods and services across different sectors of the economy.
23) Velocity is a flow variable. This discussion on A car running between Delhi and Agra at a speed of 120 km/h includes:a)Only stock variablesb)Only flow variablesc)Both a stock and a flow variabled)None of theseCorrect answer is option 'B'.
24) Depreciation Reserve Fund helps in keeping the existing stock of capital integral and intact. In case, depreciation reserve fund is not maintained, the fixed assets (like plant and machinery) would wear out without replacement. Consequently, the production capacity of the producers would start dwindling.