In the reservoir analogy for stock versus flow, the stock of capital is similar to the:
A) Quality of water
B) Outflow of water
C) Inflow of water
D) Level of water

Question

Quizplus · Accepted Answer

The stock of capital in the reservoir analogy refers to the total amount of a particular asset, similar to the level of water in a reservoir which represents the total amount of water stored in the reservoir. Therefore, the correct choice is the level of water (choice D). Choices A, B, and C are related to the flow of water and do not correspond to the stock of capital.

In the Reservoir Analogy for Stock Versus Flow, the Stock