Distinguish...between...
•Stock and Flow variable with Examples..
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Meaning : It is that quantity of an economic variable which is measured at a particular point of time.
Time : It has no time dimension.
Concept : It is a static concept.
Examples : Quantity of money, wealth, etc.
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Meaning : It is that quantity of an economic variable which is measured during a period of time.
Time : It has time dimension as per hour, per day, per month.
Concept : It is a dynamic concept.
Examples : Consumption, investment, etc.
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Answer:
Stock
Definition :- Stock is defined as a variable that is measured at a particular point in time.
Time Dimension:- Stock does not have a time dimension attached with it.
Nature :- Stock is static in nature.
Influence:- Stock influences the flow, as such greater amount of capital will lead to greater flow of services.
Examples:- Bank deposits, capital, wealth, population
Flow
Definition:- Flow is defined as a variable which is measurable over a period of time.
Time Dimension:- Flow has a time dimension attached with it.
Nature:- Flow is dynamic in nature.
Influence:- Flow influences the stock, as in increased flow of money supply in an economy results in increase in the quantity of money.
Examples:- Capital formation, income, interest on capital, depreciation
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