Identify the flow variable from the following:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Annual Expenditure of a school.
A flow variable is a quantity measured over a specific period of time. The term "annual" indicates a period of one year, making the expenditure a flow variable.
The other options are stock variables, as they are measured at a specific point in time:
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Distance between Punjab and Haryana is a static measure.
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Bank balance is a value at a specific moment in time.
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Investment in this context refers to the value of a portfolio at a specific moment in time.