Distinguish between a stock and flow variables. Illustrate with exampl

1.	Distinguish between a stock and flow variables. Illustrate with examples.
Answer» Stock : It is a variable which can be measured at a particular point of time. Stock is a static concept e.g. wealth, money supply, inventory. Flow: It is a variable which can be measured over a given period of time. It is a dynamic concept, e.g: income, gross value added (GVA), changes in inventory

Distinguish between a stock and flow variables. Illustrate with examples.

Answer»

Stock :

It is a variable which can be measured at a particular point of time. Stock is a static concept e.g. wealth, money supply, inventory.

Flow:

It is a variable which can be measured over a given period of time. It is a dynamic concept,

e.g: income, gross value added (GVA), changes in inventory