Question:
Which one of the following is a Stock Resource/ factor of production?
Which one of the following is a Stock Resource/ factor of production?
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A quick test to identify stock vs flow:
"If I do not use this resource today, is its productive service saved for tomorrow?"
- If Yes $\implies$ Stock Resource (e.g., Land, Machinery).
- If No $\implies$ Flow Resource (e.g., Labour, Wind).
"If I do not use this resource today, is its productive service saved for tomorrow?"
- If Yes $\implies$ Stock Resource (e.g., Land, Machinery).
- If No $\implies$ Flow Resource (e.g., Labour, Wind).
Updated On: Jul 13, 2026
- Labour
- Working Capital
- Entrepreneurship
- Land
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Verified By Collegedunia
The Correct Option is D
Solution and Explanation
Step 1: Understanding the Concept:
In agricultural and resource economics, factors of production are categorized based on their temporal availability and storage capacity as either "Stock" (Fund) resources or "Flow" resources.
Step 2: Detailed Explanation:
Let us understand the difference between Stock and Flow resources:
1. Stock (Fund) Resources:
These are resources whose productive services can be stored for future use if they are not used immediately.
Their physical existence does not diminish or disappear if left unused in a particular production cycle.
Examples include Land, machinery, buildings, and fertilizer stocks.
If you do not farm a piece of land today, the land remains intact for farming next season.
2. Flow Resources:
These are resources that provide services continuously over time, but these services cannot be stored.
If they are not utilized at a given moment, the potential service is lost forever.
Examples include Labour (unutilized labor-hours today are lost), solar radiation, wind, and flowing water.
- Entrepreneurship and Working Capital are generally evaluated under financial or organizational classifications rather than primary physical resource stocks.
- Thus, among the options, Land is a classic example of a Stock Resource.
Step 3: Final Answer:
The correct option is (D).
In agricultural and resource economics, factors of production are categorized based on their temporal availability and storage capacity as either "Stock" (Fund) resources or "Flow" resources.
Step 2: Detailed Explanation:
Let us understand the difference between Stock and Flow resources:
1. Stock (Fund) Resources:
These are resources whose productive services can be stored for future use if they are not used immediately.
Their physical existence does not diminish or disappear if left unused in a particular production cycle.
Examples include Land, machinery, buildings, and fertilizer stocks.
If you do not farm a piece of land today, the land remains intact for farming next season.
2. Flow Resources:
These are resources that provide services continuously over time, but these services cannot be stored.
If they are not utilized at a given moment, the potential service is lost forever.
Examples include Labour (unutilized labor-hours today are lost), solar radiation, wind, and flowing water.
- Entrepreneurship and Working Capital are generally evaluated under financial or organizational classifications rather than primary physical resource stocks.
- Thus, among the options, Land is a classic example of a Stock Resource.
Step 3: Final Answer:
The correct option is (D).
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