Which of these is NOT a flow concept?

Question

Question

This question was previously asked in

SSC CHSL Exam 2023 Tier-I Official Paper (Held On: 02 Aug, 2023 Shift 3)

Answer 1

The correct answer is Number of machines used in a factory.

Key Points

Flow concept refers to a variable that is measured over a period of time, such as revenue, expenses, production, or consumption.
Profit of a corporation and output produced by a firm are flow concepts because they are measured over a specific period, such as a year, a quarter, or a month.
Interest expense on a loan is also a flow concept because it represents the amount of money paid or accrued over time to borrow money.
Number of machines used in a factory is NOT a flow concept because it is a stock concept that represents the quantity of a resource at a specific point in time, rather than the rate of change or flow of that resource.
Other examples of stock concepts include inventory, capital, assets, liabilities, and equity.

Additional Information

Any quantity that can be measured over time is referred to as flow, whereas stock refers to any quantity that can only be measured at a specific moment in time.
The flow and the stock are mutually dependent.
Stock affects flow because more capital will result in a higher flow of services.
Flow affects stock; for example, an economy's increased money supply leads to an increase in the total amount of money.