Asked by Melissa Shular on Jun 29, 2024
Verified
Which of the following best describes a flow rather than a stock?
A) You own $5,000 worth of government bonds.
B) You own a $100,000 house.
C) You own a coin collection valued at $10,000.
D) You earn $500 per week.
E) You own a $45,000 automobile.
Flow Variable
A flow variable is an economic measure that represents a movement or quantity that is reported per unit of time, such as income per year or spending per month.
Government Bonds
Government Bonds are debt securities issued by a government to finance public expenditure, typically promising to pay periodic interest payments and to return the face value on maturity.
Coin Collection
Coin collection involves the gathering and studying of coins, often focusing on aspects such as design, production era, and historical significance.
- Discern between stock and flow variables as they apply to economics.
Verified Answer
IL
Isabelle LewisJun 30, 2024
Final Answer :
D
Explanation :
A flow refers to a rate or quantity of something that occurs over a period of time, such as earning $500 per week. The other choices all refer to stocks, meaning a static quantity of something owned or possessed, such as a house, collection, or car. While the value of those stocks may fluctuate, they are not a flow.
Learning Objectives
- Discern between stock and flow variables as they apply to economics.