Question

A variable which is measured with reference to 'a point of time' is called ________.

• A. Flow
• B. Stock
• C. Capital Goods
• D. None of the above

Hint:

Think of a photograph vs. a movie. A photograph is a 'Stock' (point in time), while a movie is a 'Flow' (duration of time).

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
Economic variables are classified based on their relationship with time—whether they represent a static quantity or a dynamic rate.
Step 2: Detailed Explanation:
1. Stock Variable: This is a quantity measured at a specific moment or point in time. Examples: Wealth on January 1st, money supply in the economy today, or the amount of water in a tank right now.
2. Flow Variable: This is a quantity measured over a duration or period of time (per hour, per month, per year). Examples: Monthly salary, annual GDP, or water flowing through a pipe per minute.
Step 3: Final Answer:
Since the question specifies "a point of time", it refers to a Stock variable.