classify the following into 'stock' and 'flow' by mentioned the reasons : (1) capital ,(2)savings
Answers
capital is a man made means of production. it is a stock because it is measured at a given point of time. saving it is the surplus of production over consumption. it is a flow as it is measured during a particular period of time
Capital and saving are stock or flow
Explanation:
Capital- Capital is the man made resources of production and it includes plant, machinery, equipment etc. it is a stock concept because it's quantity is measured at a particular point of time. we measure the total stock of plant, machinery, equipment at a fixed time making it stock concept.
Saving- Saving is the part of current income of a person, family etc which is kept aside for future use. It is a flow concept because it is measured during a period of time. we measure saving in terms of money during a month, year etc, making it flow concept.
Learn more:
Difference between stock and flow concept
https://brainly.in/question/3442736