Identify the correct statement:
A. Flows are defined over a period of time
B. Stocks are defined at a particular point of time
C. Flows are defined at a particular point of time
D. Stocks are defined over a period of time
E. Flows and Stocks have no time dimension
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct statements are: A and B only
Explanation:
- Flows are defined over a period of time. Examples include income earned per month or the quantity of goods produced per year.
- Stocks are defined at a particular point in time. Examples include the amount of money in a bank account or the quantity of goods in inventory at a specific moment.
So, the correct answer is A and B only.