Distinguish between stocks and flows. Give an example of each. (Class 12)
Distinguish between stocks and flows. Give an example of each. (Class 12)
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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
