Choose the Statement That Best Describes How Endogenous Variables Differ

question 45

Multiple Choice

Choose the statement that best describes how endogenous variables differ from exogenous variables.

• A)An endogenous variable is a function of the exogenous variable, and both are stock variables.
• B)An endogenous variable is explained outside the theory and influences an exogenous variable while an exogenous variable is explained within the theory.
• C)An endogenous variable is explained within the theory, while an exogenous variable influences the endogenous variables but is determined outside the theory.
• D)An exogenous variable is a function of the endogenous variable, and both are flow variables.
• E)An endogenous variable is a flow, while an exogenous variable is a stock.

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Definitions:

Standard Price

The predetermined cost of acquiring a product or receiving a service under normal conditions.

Pounds

Often refers to a unit of weight used primarily in the British imperial and United States customary systems.

Materials Variance

The difference between the actual cost of materials used in production and the expected (standard) cost of those materials.

Price Variances

The difference between the actual cost of a good or service and its standard or expected cost, which can be favorable or unfavorable.