Question

Select the statement that accurately represents the concepts of stocks and flows:

A) The number of students enrolled in a university is a stock; the number of students who graduate each year is a flow.
B) The number of chairs in a conference room is a flow; the number of chairs produced by a manufacturer is a stock.
C) The amount of water in a glass is a flow; the rate at which water is poured into the glass is a stock.
D) The quantity of groceries bought by a person is a flow; the number of items stocked in a grocery store is a stock.

Answer 1

Option A accurately represents the concepts of stocks (a quantity at one point in time) and flows (a quantity measured over a period of time), such as the number of enrolled students being a stock and the number of yearly graduates being a flow.

Step-by-step explanation:

The correct statement that accurately represents the concepts of stocks and flows is: A) The number of students enrolled in a university is a stock; the number of students who graduate each year is a flow. In this context, a 'stock' refers to a quantity measured at one point in time, while a 'flow' refers to a quantity measured over a period of time. Stocks are like snapshots, capturing an amount at a particular instant, such as the number of chairs or the number of students enrolled at a university. Flows, on the other hand, are like movies, capturing the movement or transfer over time, such as the rate at which students graduate or chairs are produced.

Flow rate is a concept often used in physics, particularly within the realm of fluid dynamics, representing the volume of a substance that flows past a point during a given time. In financial contexts, flows can refer to movements of money, such as financial investments or dividends over time.