Distinguish between stocks and flows. Give an example of each. (Class 12)
Distinguish between stocks and flows. Give an example of each. (Class 12)
Anurag Pathak Changed status to publish December 3, 2023
Distinguish between Stocks and Flows
| Stocks | Flows |
| Stock refers to the value of a variable at a point of time | Flow refers to the value of a variable during a period of time |
| Stock is not time-dimensional. it is measured at a specific point of time. | Flow is time dimensional, It is measured per hour, per month or per year. |
| Stock impacts the flow. Greater the stock of capital, greater is the flow of goods and services. | Flow impacts the stock, Greater the flow of income, greater is the stock of wealth with the people. |
| It is a static concept. | It is a dynamic concept. |
Example of Stocks – National Wealth
Example of Flows – National Income
Anurag Pathak Changed status to publish December 3, 2023
