A stock variable is measured at a point of time, while a flow variable is measured over a period of time. Which of the following is a stock variable?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Capital (machines and buildings) of a firm on 31 March
The capital of a firm is measured at a point of time, so it is a stock. Income in a month, exports in a year and consumption in a week each have meaning only for a period of time, so they are flows.