In an Economic Model

question 65

Multiple Choice

In an economic model:

• A) exogenous variables and endogenous variables are both fixed when they enter the model.
• B) endogenous variables and exogenous variables are both determined within the model.
• C) endogenous variables affect exogenous variables.
• D) exogenous variables affect endogenous variables.

---

Definitions:

Work Sheet

An internal document used by accountants to organize and adjust financial information before generating official financial statements.

Net Income

The profit amount left for a company following the subtraction of all expenditures and tax payments from its gross revenue.

Income Statement Credit Column

A section on the income statement where credits or revenues are recorded.

Balance Sheet

A document that captures the financial standing of a company at a certain date, outlining its assets, debts, and the equity held by shareholders.