Question

Identify which of the following is a `Stock' variable:

• A. Monthly Salary of a teacher
• B. Distance between Delhi and Mumbai
• C. Annual Interest on savings
• D. Quantity of wheat produced in a year

Hint:

Stock is measured at a point in time (e.g., wealth, population, water in a tank). Flow is measured over a period of time (e.g., income, production, expenditure).

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
Variables in economics are classified as either Stock or Flow depending on whether they are measured at a point in time or over a period of time.

Step 2: Detailed Explanation:
A Stock variable is measured at a particular point in time and has no time dimension. A Flow variable is measured over a period of time (per day, per month, per year).
- Monthly Salary: measured per month -- it is a Flow.
- Distance between Delhi and Mumbai: this is a fixed quantity measured at a point -- it is a Stock.
- Annual Interest: measured per year -- it is a Flow.
- Quantity of wheat produced in a year: measured over a year -- it is a Flow.

Step 3: Final Answer:
Distance between Delhi and Mumbai is a Stock variable.