In the bathtub analogy,which of the following is a stock variable?
A)the amount of investment
B)the rate of depreciation
C)the amount of capital-per worker
D)the Cobb-Douglass value

Question

Quizplus · Accepted Answer

A stock variable is a variable measured at a specific point in time. In the bathtub analogy, the amount of capital-per worker is a stock variable because it represents a specific amount of capital at a specific point in time (per worker). The amount of investment and rate of depreciation are flow variables because they represent changes over time. The Cobb-Douglass value is a function used to describe the relationship between inputs and output in production, but it is not a variable measured at a specific point in time.

In the Bathtub Analogy,which of the Following Is a Stock