Question
Distinguish between stock and flow variables with suitable examples.
| Basis of Difference | Stock Variables | Flow Variables |
| Definition | A stock variable is measured at a particular point of time. For example, bank balance as on October 01, 2010 is ₹ 5000. | A flow variable is measured over an interval of time. For example, interest earned on bank deposits for 1 year, i.e. from October 01, 2009 to September 30, 2010. |
| Time Element | They do not have an element of time attached to them. | They have an element of time attached to them such as 1 year, 6 months, 10 days, etc. |
| Nature | These are static in nature. | These are dynamic in nature. |
| Examples | Capital, Bank deposits, Water in a tank. | Capital formation, Interest on Capital, Water flowing in a stream. |
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| Units of x | TU |
| 1 | 11 |
| 2 | 21 |
| 3 | 30 |
| 4 | 38 |
| 5 | 45 |
| 6 | 51 |
| 7 | 56 |
| 8 | 60 |
| (Rs. lakhs) | ||
| 1 | Depreciation. | 20 |
| 2 | Intermediate cost. | 90 |
| 3 | Subsidy. | 5 |
| 4 | Sales. | 140 |
| 5 | Exports. | 7 |
| 6 | Change in stock. | (-)10 |
| 7 | Import of raw materials. | 3 |