A Flow Variable

question 34

Multiple Choice

A flow variable

• A) measures a process that takes place over a period of time
• B) is often used to measure the amount of wealth that a household has
• C) is related to the supply and demand of water
• D) measures a quantity in existence at a moment in time
• E) is a definition unique to economics

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Definitions:

Production Possibilities

Production possibilities refer to the different combinations of goods and services that an economy can produce given its available resources and technology, illustrated by the production possibilities frontier (PPF).

Consumer Goods

Products and services that are consumed by individuals or households to satisfy their immediate needs and wants.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing an action.

Autos

Short for automobiles, referring to passenger vehicles designed for personal transportation.