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CSEET · Economic and Business Environment · National Income Accounting and Related Concepts

In national income accounting, which of the following is a 'stock' variable rather than a 'flow' variable?

The total capital stock of machinery on 31 March is a stock variable because it is measured at a single point in time. GDP, monthly wages and quarterly exports are measured over a period of time, so they are flow variables.

  1. AGross Domestic Product of India in a financial year
  2. BWages paid to workers during a month
  3. CTotal capital stock of machinery in the country on 31 MarchCorrect
  4. DExports of goods during a quarter

Explanation

A stock is measured at a point in time, while a flow is measured over a period. Capital stock on 31 March is a point-in-time quantity. GDP, wages for a month and quarterly exports are all measured over a period, so they are flows.

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