Question

State whether the following are stock or flow :

(i) Losses
(ii) Capital
(iii) Production
(iv) Wealth

Class XII
National income

Answer 1

Answer is option (ii)Capital ...."INCOME " is a flow.flow variable is measured over an interval of time for an year or between a year ;eg:- paying taxes, saving, consuming. stock variable is measured at one specific time, and represents a amount or quantity existing at that point in time eg on 1 the Oct 2014 . Debt, capital stock,deposit is a good example for stock.