Macroeconomic topic:
Stock and flow variable
Stock is a variable whose values are expressed at a given point of time but flow variables
are those whose values are expressed overtime for example, capital is a stock concept
whereas investment is a flow concept. Similarly wealth is a stock concept whereas
income is a flow concept. Sometimes a difference between the stock and flow variable are
expressed in terms of the example of a bathtub where the water flowing from the tap to
the tub is flow variable but the amount of water collected in the bathtub is stock variable.
National income
National income can be defined as the total income earned by the residents of a nation
due to their participation in different production work in a given period of time according
to Hicks productive work can be defined as work done through exchange that satisfies
the utility of others.
for example if different factors of production like land , labor, capital etc. participate in
productive activities by rendering productive works then the income that they earn will
not only be their personal income but also will be the part of the national income of the
nation.
Stock and flow variable
Stock is a variable whose values are expressed at a given point of time but flow variables
are those whose values are expressed overtime for example, capital is a stock concept
whereas investment is a flow concept. Similarly wealth is a stock concept whereas
income is a flow concept. Sometimes a difference between the stock and flow variable are
expressed in terms of the example of a bathtub where the water flowing from the tap to
the tub is flow variable but the amount of water collected in the bathtub is stock variable.
National income
National income can be defined as the total income earned by the residents of a nation
due to their participation in different production work in a given period of time according
to Hicks productive work can be defined as work done through exchange that satisfies
the utility of others.
for example if different factors of production like land , labor, capital etc. participate in
productive activities by rendering productive works then the income that they earn will
not only be their personal income but also will be the part of the national income of the
nation.
