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Which of the following can be considered as an example of flow variable? (i) Production of rice (ii) Import of cloth (iii) Change in capital
Question

Which of the following can be considered as an example of flow variable?
(i) Production of rice
(ii) Import of cloth
(iii) Change in capital

A.

None of (i), (ii) and (iii)

B.

Only (iii)

C.

All of (i), (i) and (iii)

D.

Only (i) and (ii)

Correct option is C

The correct answer is (c) All of (i), (ii) and (iii).
Flow variables are measured over a period of time.
(i) Production of rice is a flow variable because it is measured over a specific period, such as a year.
(ii) Import of cloth is a flow variable because it is measured over a specific period.
(iii) Change in capital can also be considered a flow variable because it represents the difference in capital over a specific period.
Therefore, all (i), (ii), and (iii) can be considered examples of flow variables.

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