Distinguish between stock and flow. Between net investment and capital which is a stock and which is a flow?
Distinguish between stock and flow. Between net investment and capital which is a stock and which is a flow?
Anurag Pathak Changed status to publish November 18, 2023
Distinguish between stock and flow
| Basis | Stock | Flow |
| Meaning | Stock variable refers to that variable, which is measured at a particular point of time | Flow variable refers to that variable, which is measured over a period of time |
| Time Dimension | It does not have a time dimension. | It has a time dimension as its magnitude can be measured over a period of time. |
| Nature of concept | It is a static concept | It is a dynamic concept |
| Examples | 1. Production of India as on 31.03.2023
2. Total number of Maruti Cars in Delhi. 3. Money supply (money in circulation). 4. National Wealth 5. Quantity of wheat stored. |
1. Number of births during 2023.
2. Maruti cars manufactured during January 2023. 3. Expenditure or transactions in money. 4. National Income. 5. Quantity of wheat produced. |
Net Investment is a flow as it is measured over a period of time.
Capital is a stock as it is measured at a point of time.
Anurag Pathak Changed status to publish November 18, 2023
