Question

Which of the following is a stock variable?​

Answer 1

Answer:

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Explanation:

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Stock Variables: A stock is a quantity which is measurable at a particular point of time, e.g., 4 p.m., 1st January, Monday, 2010, etc. Capital is a stock variable. ... Thus, wealth is a stock since it can be measured at a point of time, but income is a flow because it can be measured over a period of time.

Answer 2

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Which of the following is a stock variable?​

1. Expenditure 2. Income 3. Wealth 4. Salary

Answer:

Correct option:

Wealth

Wealth is a stock variable.

Explanation:

stock variable (plural stock variables) is a term used to describe a type of stock (economics, accounting) A variable whose value is determined by a single point in time rather than a period of time.

A flow depicts change over time, whereas a stock depicts the quantity of a variable at a specific point in time.

• Because it can be measured at a specific point in time, wealth is a stock.
• Because it can be measured over a period of time, income is a flow.

• Salary and wealth change are both flows because they can be measured over time.

Stocks are identified at a specific point in time. As a result, wealth is a stock variable because it can be measured at a specific point in time.