Question:

Which of the following is a stock?

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To distinguish a stock from a flow, ask if it's measured "at a point in time" (stock) or "per unit of time" (flow). Think of a bathtub: the amount of water in it is a stock, while the water coming from the faucet is a flow.
  • Wealth
  • Saving
  • Export
  • None of these
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The Correct Option is A

Solution and Explanation

In economics, it's important to distinguish between stock and flow variables.

A stock is a quantity measured at a specific point in time. It represents a cumulative amount.
A flow is a quantity measured over a period of time.
Applying these definitions:

(A) Wealth: This is the total value of assets a person owns at a particular moment. It is a stock. (e.g., "As of today, his wealth is \$1 million").
(B) Saving: This is the part of income not spent over a period (e.g., a month or year). It is a flow. (e.g., "She saves \$500 per month").
(C) Export: This is the value of goods and services sold to other countries over a period (e.g., a quarter or year). It is a flow.
Therefore, wealth is the stock variable among the options.
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