In an Economic Model, an Endogenous Variable Is

question 38

Multiple Choice

In an economic model, an endogenous variable is

• A) a stand-in for more complicated variables.
• B) determined by the model itself.
• C) determined outside the model.
• D) a variable that has no effect on the workings of the model.
• E) closely linked to a closed economy.

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Definitions:

Marginal Cost

The uptick in aggregate cost due to the output of an extra unit of a product or service.

Monopolist

An entity that is the sole provider of a particular product or service in a market, possessing significant market power and control over prices.

Output

The amount of goods or services produced by a person, machine, factory, or company within a certain period.

Demand Schedule

A diagram indicating the volume of goods or services that consumers can and will buy at assorted prices.