Question:
Which one of the following is a Stock Resource/factor of production?
Which one of the following is a Stock Resource/factor of production?
Show Hint
Resource Classification: Land = Stock (snapshot in time); Labor, Capital, Entrepreneurship = Flow (over a duration).
Updated On: Jul 2, 2026
- Labour
- Working Capital
- Entrepreneurship
- Land
Show Solution
Verified By Collegedunia
The Correct Option is D
Approach Solution - 1
Economic resources are classified as either stock or flow:
Stock Resource: Quantified at a specific point in time. Land exemplifies a stock resource as its existence is independent of time and it is not depleted through use like labor or capital.
Flow Resource: Measured over a period. Labor (hours worked), working capital (utilized over time), and entrepreneurship (managerial effort over a duration) are examples of flow resources. Thus, only land constitutes a stock resource among the provided options.
Stock Resource: Quantified at a specific point in time. Land exemplifies a stock resource as its existence is independent of time and it is not depleted through use like labor or capital.
Flow Resource: Measured over a period. Labor (hours worked), working capital (utilized over time), and entrepreneurship (managerial effort over a duration) are examples of flow resources. Thus, only land constitutes a stock resource among the provided options.
Was this answer helpful?
0
0
Show Solution
Verified By Collegedunia
Approach Solution -2
Analogy-based test:
A useful test for stock versus flow is the "photograph versus movie" analogy: a stock is something you could measure by taking a snapshot at one instant, while a flow can only be measured over a stretch of time. Applying this test - Labour is measured in hours worked over a period, so it is a flow. Working Capital is capital in active use, replenished and consumed continuously, so it too is measured over a period, making it a flow. Entrepreneurship is valued through managerial effort exerted over time, again a flow.
Land, by contrast, can be measured by area at a single point in time regardless of whether it is being used that instant, which is exactly the "snapshot" test for a stock resource - confirming option (4).
A useful test for stock versus flow is the "photograph versus movie" analogy: a stock is something you could measure by taking a snapshot at one instant, while a flow can only be measured over a stretch of time. Applying this test - Labour is measured in hours worked over a period, so it is a flow. Working Capital is capital in active use, replenished and consumed continuously, so it too is measured over a period, making it a flow. Entrepreneurship is valued through managerial effort exerted over time, again a flow.
Land, by contrast, can be measured by area at a single point in time regardless of whether it is being used that instant, which is exactly the "snapshot" test for a stock resource - confirming option (4).
Was this answer helpful?
0
0
Top ICAR AIEEA Social Science Questions
- What was the percentage share of value of agricultural exports to national exports in 2021-22?
- RAFTAR stands for
- What is not true about the e-NAM?
- Total fish production in India in 2020-21 was
- Which of the following elements regulates the opening and closing of stomata?
View More Questions
Top ICAR AIEEA Economics Questions
- Given below are two statements:
Statement (I): DNA, RNA and proteins are micromolecules.
Statement (II): Nucleotide and amino acids are monomers of DNA/RNA and proteins, respectively.
In light of the above statements, choose the most appropriate answer from the options given below. - Given below are two statements:
Statement (I): Red cotton bug can be controlled by applying insecticide in soil.
Statement (II): Red cotton bug lays eggs in/on soil.
In light of the above statements, choose the most appropriate answer from the options given below. - Given below are two statements:
Statement (I): Most typical tropical crops are short-day plants while those of higher latitudes are generally long-day plants.
Statement (II): The duration of night or complete darkness is more important than the length of the day.
In light of the above statements, choose the most appropriate answer from the options given below. - Given below are two statements, one is labelled as Assertion (A) and other one labelled as Reason (R).
Assertion (A): The total expenditure made by a consumer on a normal goods decreases with the increase in its price.
Reason (R): The price elasticity of demand for the goods is elastic ($\varepsilon_d > 1$).
In light of the above statements, choose the most appropriate answer from the options given below. - In a perfect competition model, the change in which of the following costs/ imposition of taxes does not affect the equilibrium position of the firm in the short run.
(A). Increase in fixed cost
(B). Imposition of lump-sum tax
(C). Imposition of profit tax
(D). Imposition of specific sales tax (Per unit of output)
Choose the correct answer from the options given below:
View More Questions
Top ICAR AIEEA Questions
- Which of the following statements is false?
- Which of the following is an example of an inventory?
- According to Adam Smith, productivity gains could be brought about through .
- The supply curve for an artificially scarce good is .
- Which of the following would not be considered an opportunity cost of paid employment?
View More Questions