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Information about Stock Vs. Flow (economics)

Stock vs. flow
In economics, the distinction is often made between stock magnitudes and flow magnitudes. A "stock" is something one and has on hand at a point of time (say December 31), which may have been accumulated in the past. It would be measured in units (such as dollars or tons). On the other hand, a "flow" is something that occurs over time and would be measured per unit of time (dollars or tons per month, year, and so forth). The diagram contrasts the flows of new investment (and of depreciation or depletion) with the stock of capital currently on hand.

A person or country might have stocks of money, financial assets, liabilities, wealth, real means of production, capital, and human capital (or labor power). Flow magnitudes besides those shown in the diagram include income, spending, saving, debt repayment, labor, or stocks averaged over a unit of time, such as the money in circulation per year.

See also

References

  • George W. Harrison (1987). "stocks and flows," The , v. 4, pp. 506-09.
Economics is the social science that studies the production, distribution, and consumption of goods and services. The term economics comes from the Greek for oikos (house) and nomos (custom or law), hence "rules of the house(hold).
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Most generally, the accumulation of capital refers simply to the gathering or amassment of objects of value; the increase in wealth; or the creation of wealth. Capital can be generally defined as assets invested for profit.
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A diagram is a simplified and structured visual representation of concepts, ideas, constructions, relations, statistical data, anatomy etc used in all aspects of human activities to visualize and clarify the topic.
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Depreciation is a term used in accounting, economics and finance with reference to the fact that assets with finite lives lose value over time. (There is also a separate use in international finance to refer to a reduction in the exchange rate of a currency - see Depreciation
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In economics, capital or capital goods or real capital refers to already-produced durable goods available for use as a factor of production. Steam shovels (equipment) and office buildings (structures) are examples.
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Money is any token or other object that functions as a medium of exchange that is socially and legally accepted in payment for goods and services and in settlement of debts.
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asset is meant probable future economic benefits controlled by an entity as a result of past transactions or events and from which future economic benefits may be obtained.
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liability is anything that is a hindrance, or puts individuals at a disadvantage.

Financial accounting

In financial accounting, a liability is defined as an obligation of an entity arising from past
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In economics and business, wealth of a person or nation is the value of assets owned net of liabilities owed (to foreigners in the case of a nation) at a point in time. The assets include those that are tangible (land and capital) and financial (money, bonds, etc.).
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Means Of Production is a compilation of Aim's early 12" and EP releases, recorded between 1995 and 1998.

Track listing

  1. "Loop Dreams" – 5:30
  2. "Diggin' Dizzy" – 5:33
  3. "Let the Funk Ride" – 5:11
  4. "Original Stuntmaster" – 6:33

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Human capital refers to the stock of productive skills and technical knowledge embodied in labor. Many early economic theories refer to it simply as labor, one of three factors of production, and consider it to be a fungible resource -- homogeneous and easily interchangeable.
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Labour power (in German: Arbeitskraft, or labour force) is a crucial concept used by Karl Marx in his critique of capitalist political economy. He regarded labour power as the most important of the productive forces.
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Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a business.

Internationally, the accounting term income is synonymous to term revenue minus expenses.
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cost is the value of money that has been used up to produce something, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost.
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In common usage, saving generally means putting money aside, for example, by putting money in the bank or investing in a pension plan.

In a broader sense, saving is typically used to refer to economizing, cutting costs, or to rescuing someone or something.
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labour (or labor) is a measure of the work done by human beings. It is conventionally contrasted with such other factors of production as land and capital. There are theories which have created a concept called human capital (referring to the skills that workers possess, not
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worldwide view of the subject.
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Please help [ improve the article] or discuss these issues on the talk page.
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In common usage, saving generally means putting money aside, for example, by putting money in the bank or investing in a pension plan.

In a broader sense, saving is typically used to refer to economizing, cutting costs, or to rescuing someone or something.
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