Which of the following describes a stock variable?
A) You save $100 each week.
B) You buy $10 worth of gasoline each week.
C) You earn $500 per week at your job.
D) You own $5,000 worth of government bonds.

Question

Which of the following describes a stock variable?  
A) You save $100 each week. 
B) You buy $10 worth of gasoline each week. 
C) You earn $500 per week at your job. 
D) You own $5,000 worth of government bonds.

Quizplus · Accepted Answer

A stock variable is a variable that is measured at a specific point in time and represents a quantity that exists at that point. Owning $5,000 worth of government bonds is a stock variable as it represents the quantity of bonds owned at a particular point in time. The other choices (A, B, and C) are flow variables as they represent a quantity that can vary over a period of time (e.g. saving, buying, earning).

Which of the Following Describes a Stock Variable