Read the following statements carefully :
Statement I : Stock variables are measurable at a particular point of time.
Statement II : A change in any stock variable in a given time period is a flow variable.
In the light of the given statements, choose the correct option from the following :
Read the following statements carefully :
Statement I : Stock variables are measurable at a particular point of time.
Statement II : A change in any stock variable in a given time period is a flow variable.
In the light of the given statements, choose the correct option from the following :
Show Hint
- Both Statements I and II are true.
- Both Statements I and II are false.
- Statement I is true, but Statement II is false.
- Statement I is false, but Statement II is true.
The Correct Option is A
Solution and Explanation
A stock variable has value at a point of time, such as capital or wealth on 31 March. A flow variable is measured over a period, such as income per month.
Step 2: Check Statement I:
Stock variables are measured at a particular point of time. This is the definition, so Statement I is TRUE.
Step 3: Check Statement II:
A flow is the change in a stock over a period. For example, investment is the change in capital stock in a year.
So a change in a stock in a given period is a flow variable. Statement II is TRUE.
Step 4: Match:
Both true is option (A).
(B) says both are false, so it is wrong. (C) and (D) call one of them false, so they are wrong.
Final Answer:
Option (A): both statements are true.
Top CBSE CLASS XII Economics Questions
___________ farming is a system that is helpful in restoring, maintaining and enhancing the ecological balance.
(Choose the correct alternative to fill in the blank):The present day rapid industrial growth in China can be traced back to the economic reforms introduced in 1978, where ________ .
(Choose the correct alternative to fill in the blank):
(i) Initially reforms were initiated in agriculture, foreign trade and investment sectors.
(ii) The policy of dual pricing was adopted.
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Assertion (A): In the recent past, Indian economy has been facing the problem of jobless growth.
Reason (R): Jobless growth refers to a situation where an economy is able to produce more goods and services without generating additional employment.Read the following statements carefully:
Statement 1: India, Pakistan, and China have similar physical endowments but totally different political systems.
Statement 2: Both India and Pakistan laid great emphasis on creating a large private sector.Read the following statements carefully:
Statement 1: India, Pakistan and China have similar physical endowments, but totally different political systems.
Statement 2: Both India and Pakistan laid great emphasis on creating a large private sector.
Top CBSE CLASS XII Introduction to Macroeconomics Questions
Read the following text carefully :
“A country’s total National Income (NI) at the end of the year is ₹ 80,000 crore. During the same year, the Gross Domestic Product (GDP) increased by ₹ 10,000 crore. The depreciation on capital goods was ₹ 2,000 crore and National savings at the end of year is ₹ 15,000 crore. Additionally, country invested ₹ 8,000 crore in new capital goods industries.”
In the light of above text, categorise the items as ‘stock’ or ‘flow’ variables with valid arguments.
Money supply is a __________ variable, as it refers to the total volume of money held by the __________ at a particular point of time.
(Choose the correct option to fill in the blanks)
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