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What are Flow and Stock? Video Lecture | Economics Class 12 - Commerce

FAQs on What are Flow and Stock? Video Lecture - Economics Class 12 - Commerce

1. What is flow in economics?

Ans. In economics, flow refers to the movement of goods, services, and money between different sectors of the economy. This includes the production, distribution, and consumption of goods and services, as well as the flow of income and expenditure within an economic system.

2. What is stock in economics?

Ans. In economics, stock refers to the accumulation of goods, services, or assets at a particular point in time. It represents the quantity or value of something at a given moment, rather than the flow or rate of its movement. Stocks can include physical goods, financial assets, or even the inventory of a business.

3. How are flow and stock related in economics?

Ans. Flow and stock are interrelated concepts in economics. While flow refers to the movement or transfer of goods, services, and money, stock represents the accumulation or quantity of these items at a specific point in time. Flow affects stock as it determines the changes in the quantity or value of stocks over time.

4. Can you provide an example to illustrate the difference between flow and stock?

Ans. Sure! Let's consider a simple example of a bakery. The flow would be the production and sale of bread on a daily basis. Each day, the bakery produces and sells a certain number of loaves. The stock, on the other hand, would be the inventory of bread the bakery has at a given moment, which represents the accumulation of the loaves it has produced but not yet sold.

5. How do flow and stock impact the overall economy?

Ans. The interplay between flow and stock is essential for understanding the functioning of an economy. Flow represents the economic activity and transactions happening within a period, while stock reflects the current state of accumulation. By analyzing flow and stock, economists can gain insights into the overall economic performance, including production levels, consumption patterns, investment behavior, and financial stability.

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Sep 28, 2025 Last updated

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