Economic variables such as 'National Income' and 'profits' can be classified under which of the following heads ?

Flow concept

The most suitable classification for economic variables like "National Income" and "profits" is: Flow concept

Flow concept: This refers to economic variables measured over a period of time, indicating the movement or change in value. National income and profits perfectly fit this description as they represent the total value of goods and services produced (national income) or the earnings of a business (profits) within a specific period.

• Stock concept: This refers to economic variables measured at a specific point in time, like bank deposits or capital stock. National income and profits don't fall into this category because they represent the value of economic activity over a period of time (usually a year).
• Depreciation: This is a specific accounting term referring to the decrease in the value of an asset over time due to wear and tear. 
• Final goods: These are goods and services consumed directly by households or businesses, not used for further production.