If We Seek to Explain the Number of Seats Sold

question 70

Multiple Choice

If we seek to explain the number of seats sold on a particular air route,say Toronto to Halifax,over a one- year period,we would consider many variables.Which of the following variables would be endogenous to our theory?

• A)the number of airline seats sold on this route
• B)the price of jet fuel
• C)the average salary of Canadian airline pilots
• D)the number of fog days in Halifax
• E)the unemployment rate in Toronto

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Definitions:

Rent Expense

This outlines the cost incurred by a business to use property or equipment as part of its operational activities for a certain period.

Wages Expense

The total cost incurred by a company to compensate its employees, including salaries, wages, and other forms of employee benefits.

Operating Revenues

The income earned by a company from its normal business activities, typically from the sale of goods and services to customers.

Cash Sales

Transactions where goods or services are paid for with cash at the time of the sale, rather than on credit.