What is the difference between a flow variable and a stock variable?
A) A stock variable is a variable that is measured over a specific period of time while a flow variable is a variable that is independent of time.
B) A flow variable is a variable that is measured in units of current prices while a stock variable is measured using prices from a base period.
C) A flow variable is a variable that is measured over a specific period of time while a stock variable is a variable that is independent of time.
D) A stock variable is a variable that is measured in units of current prices while a flow variable is measured using prices from a base period.

Question

Quizplus · Accepted Answer

A flow variable is measured over a specific period of time while a stock variable is a variable that is independent of time. Therefore, option C is correct. Option A is incorrect because both flow and stock variables are measured over a specific period of time but they differ in their nature. Option B and D are incorrect because the measuring units of variables are not the defining characteristic of flow and stock variables.

What Is the Difference Between a Flow Variable and a Stock