Suppose There Is a Theory That Several Things Influence the Price

question 95

Multiple Choice

Suppose there is a theory that several things influence the price of fish in Halifax,one of which is the weather during the fishing season.When examining the determinants of the price of fish,the weather is

• A)an endogenous variable,as it influences the price of fish.
• B)an exogenous variable,as it is determined outside the theory.
• C)a stock,as it influences the quantity of fish caught.
• D)an act of God and,therefore,has no legitimate connection with the theory.
• E)an endogenous variable,as it is determined within the theory.

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Definitions:

Economic Efficiency

A scenario in which the allocation of resources is aimed at maximizing the creation of goods and services.

Benefits Exceed

A term indicating that the advantages or positive outcomes of a decision or situation outweigh the costs or negative outcomes.

Activity Costs

The expenses associated with specific activities or processes within a business, often analyzed for cost management purposes.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that sellers are willing to supply, holding other factors constant.