An example of a stock variable in economic theory will be _____
A) the amount of money saved by an individual each week.
B) the amount of money spent on buying gasoline each month.
C) the weekly grocery bill of an average household.
D) the total value of the government bonds held by an individual.
E) the total fiscal spending during a particular quarter.

Question

Quizplus · Accepted Answer

A stock variable is a quantity that is measured at a specific point in time, such as the total value of the government bonds held by an individual. This is different from a flow variable, which is measured over a period of time, such as the amount of money saved by an individual each week (choice A) or the weekly grocery bill of an average household (choice C). The amount of money spent on buying gasoline each month (choice B) is also a flow variable. The total fiscal spending during a particular quarter (choice E) is a flow variable as it is measured over a specific period of time.

An Example of a Stock Variable in Economic Theory Will