Asked by Saadak Ahmed Mohamud on Jun 15, 2024
Verified
An example of a flow variable in economics is:
A) the total amount of bank loan taken by Emily.
B) the value of an apartment owned by Jerome.
C) the price of an antique painting used to decorate an office.
D) the earnings of Malaya from piano classes each month.
E) the total value of the U.S.treasury bonds held by China.
Flow Variable
An economic measure that represents something measured over a specific period of time, such as income or expenditure, which contrasts with stock variables that are measured at a specific point in time.
Piano Classes
Structured lessons focused on teaching the skills and theory required to play the piano, often involving both practical and theoretical components.
Treasury Bonds
Long-term government debt securities with a fixed interest rate and maturity of more than 10 years.
- Compare and contrast stock variables with flow variables in an economic setting.
Verified Answer
GS
Ganesh SivaramalingamJun 20, 2024
Final Answer :
D
Explanation :
A flow variable is a measure of something over a period of time, such as monthly earnings from piano classes. Option A is a stock variable as it does not indicate any period of time. Options B and C are assets and not related to any flow of income or expenditure. Option E is a stock variable as it represents the total value of bonds held at a certain point in time.
Learning Objectives
- Compare and contrast stock variables with flow variables in an economic setting.