Question

Distinguish between stock and flows. Give an example of each.

Answer 1

Stock	Flow
A stock is a variable which is measured at a particular time.	Flow is a variable which is measured over a long period of time
A stock is stat	Flow is dynamic
The time dimension is not applied to the stock concept.	The time dimension is applied to the flow concept
Examples: National wealth and bank deposits	Examples: National income and interest on capital

In a tank of water, the flow of water can be considered a flow variable and the stock of water can be considered a stock variable because it can be measured at a particular point of time. Capital is like the stock of water in the tank at a particular point of time, whereas net investment is like the flow of water into the tank.