In an Economic Model, an Endogenous Variable Is

question 38

Multiple Choice

In an economic model, an endogenous variable is

• A)a stand-in for more complicated variables.
• B)closely linked to a closed economy.
• C)determined outside the model.
• D)determined by the model itself.
• E)a variable that has no effect on the workings of the model.

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Definitions:

Year 1

Indicates the first year of a specific period of time, operation, or accounting period, setting the baseline for subsequent years.

Net Operating Income

The profit a company makes from its core business operations, excluding deductions of interest and taxes.

Operating Loss

A loss incurred when a company's operating expenses exceed its gross profits or revenues, indicating that the core operations are not profitable.

Absorption Costing

Absorption Costing is an accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.