💹 Economics (Section II)National Testing Agency (NTA)

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Try a real Economics (Section II) question

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From the chapter: National Income Accounting — Aggregates, the Three Methods and Real GDP

Which one of the following is a flow variable?

Show the answer and why

Answer: C.

Income only means something per period — ₹10 lakh a year is a statement, ₹10 lakh on its own is not — so national income is a flow. Capital, wealth and the money supply on a stated date are all measured at a point of time, which makes them stocks; the date in the money-supply option is the giveaway.

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