Briefly describe in your own words the difference between a stock and a flow. For each of the following activities, determine whether it is a stock concept or a flow concept:
(a) Sue earns $5.75 per hour working at the Burger Barn.
(b) On his way home from work, Sam finds a ten-dollar bill.
(c) Upon graduation, John accepts a job with a salary of $2000.
(d) Jennifer saves 10% of her monthly income.
(e) Alex saves $1,000 a year.
(f) Japan has a capital to labor ratio of 10 where China has a capital to labor ratio of 2.
A stock variable is measured at a specific point of time, whereas a flow variable is measured over (during) a specified period of time. Therefore:
(a) Sue's earning - Flow variable (earning per period of 1 hour)
(b) Finding $10 bill - Stock variable (She finds it at a point of time)
(c) John's salary - Flow variable (earning per period of 1 year)
(d) Jennifer's saving - Flow variable (saving per period of 1 month)
(e) Alex's saving - Flow variable (saving per period of 1 year)
(f) capital-labor ratio - Stock variable
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