Flow Variable

A quantity measured per unit of time period is known as a flow variable. It is a type of variable that measures the rate at which something is changing over time. Flow variables are used in economics, finance, and other fields to measure changes in quantities such as sales, profits, and inventory.

Examples of Flow Variables

Some examples of flow variables are:

- Income: The amount of money earned per month or year is a flow variable.
- Sales: The amount of products sold per day, week, or month is a flow variable.
- Production: The number of goods produced per hour, day, or week is a flow variable.
- Expenses: The amount of money spent per month or year is a flow variable.
- Inventory: The rate at which inventory is being replenished or depleted is a flow variable.

Difference between Flow and Stock Variables

Flow variables are different from stock variables, which measure the quantity of something at a specific point in time. Stock variables are also known as levels or balances. For example, the total amount of money in a bank account is a stock variable because it measures the amount of money at a specific point in time.

Conclusion

In conclusion, a quantity measured per unit of time period is known as a flow variable. It measures the rate at which something is changing over time, and it is different from a stock variable, which measures the quantity of something at a specific point in time.