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
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. All of (i), (ii) and (ii).
Yes, all of these options - (i) Production of rice, (ii) Import of cloth, and (iii) Change in capital – can be considered examples of flow variables because they refer to quantitative measures representing movement or change within an economy over time. These flow variables play a crucial role in analyzing economic activities, predicting future trends, and formulating appropriate policies aimed at promoting sustainable development and improving living standards.