1.

Distinguish between stock and flow and give two examples for each.

Answer»

Difference between stock and flow :-

StockFlow
(1) Stock means that quantity of an Economic variable which is measured at a particular point of time.(1) Flow is that quantity of an economic Variable which is measured during the Period of time.
(2)Stock has no time dimension.(2) Flow has time dimension as per hour, Per day, per month and per year.
(3)Stock is a static concept.(3) Flow is a dynamic concept.
(4) Example :
(a) Quantity of money
(b) Wealth'
(c) The Amount of wheat stored
(d) Water in a reservoir.
(4) examples :
(a) Consumption
(b) Investment
(c) Income
(d) water in a river.



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