Asked by Willie Alfaro Mora on Jun 28, 2024

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Which of the following is correct?

A) Income is a stock concept, and wealth is a flow concept.
B) Both income and wealth are flow concepts.
C) Both income and wealth are stock concepts.
D) Income is a flow concept, and wealth is a stock concept.

Stock Concept

A financial term referring to the ownership of shares in a company or the total value of goods available in inventory.

Flow Concept

Economic measures that are defined over a period of time, such as income or expenditure, contrasted with stock concepts measured at a point in time.

Wealth

The accumulation of valuable financial assets and physical possessions which can be used to produce more income or sold for monetary value.

  • Differentiate the principles of income versus wealth, along with their allocation.
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AK
Ambika KandelJul 05, 2024
Final Answer :
D
Explanation :
Income is a flow concept because it refers to the amount of money received over a period of time, while wealth is a stock concept because it refers to the accumulation of valuable resources or assets at a given point in time.