Consider the distinction between “stock” and “flow” variables. Which of the following variables are ALL “flow” variables?Group of answer choicesInvestment, savings, capitalGDP, investment, wealthGDP, investment, consumptionInvestment, savings, wealth
Question
Consider the distinction between “stock” and “flow” variables. Which of the following variables are ALL “flow” variables?Group of answer choicesInvestment, savings, capitalGDP, investment, wealthGDP, investment, consumptionInvestment, savings, wealth
Solution
The correct answer is "GDP, investment, consumption". These are all flow variables because they are measured over a period of time. GDP is the total value of goods and services produced over a specific time period. Investment is the amount of money spent on capital goods in a certain time period. Consumption is the total spending by households on goods and services during a given period. On the other hand, stock variables such as capital and wealth are measured at a specific point in time.
Similar Questions
Gross domestic product:Question 24Select one:a.is a flow variable.b.is a stock variable.c.could be either a flow variable or a stock variable depending on the time period considered.d.is neither a flow nor a stock variable; it is a statistic.
Which of the following are flows?Group of answer choicesConsumption, workers hired, capitalInvestment, budget deficit, incomeInvestment, debt, incomeConsumption, unemployment, household deficit
Classify the following economic flows as transactions, revaluations (holding gains/losses), and other changes in the volume of assets and liabilities by placing them in the appropriate box. 1. The consumption of fixed capital(macroeconomic depreciation)
The statement of cash flows is a financial statement that shows Blank______.Multiple choice question.assets and liabilitiesrevenues and expensescash receipts and disbursementschanges in stockholders equity
Assets, liabilities, and owners' equity are the major accounts listed on ______.Multiple choice question.a profit and loss statementan income statementa balance sheeta statement of cash flows
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.