Suppose There Is a Theory That Several Things Influence the Price

question 14

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

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Definitions:

Promissory Note

A financial instrument containing a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Maker

In terms of financial instruments, the maker is the party that creates or issues the instrument, such as a check or promissory note.

Payee

The party in a financial transaction who receives payment.

Note Receivable

A written promise that entitles the holder to receive a specified amount of money from another party at a future date.