Which of the Following Statements Regarding Exogenous and Endogenous Variables

question 57

Multiple Choice

Which of the following statements regarding exogenous and endogenous variables is correct?

• A)The set of exogenous variables in any economic model should take into account the rich detail of the world and so should be limitless.
• B)Endogenous variables will always be determined within the model.
• C)Exogenous variables change as a result of changes in endogenous variables.
• D)The only variables that are relevant to the market equilibrium are the endogenous variables, as they are determined within the model.

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Definitions:

Extrinsic Factors

External elements or influences that affect behavior, motivation, and outcomes, such as rewards or punishments that are not inherently related to the activity being performed.

Intrinsic Factors

Elements or motivations originating from within an individual, driving behavior for the sake of personal satisfaction or fulfillment.

Productivity

Productivity measures the efficiency of production in terms of the amount of output produced per unit of input, such as labor or materials.

Job Morale

The overall sentiment, outlook, and satisfaction of employees in their workplace environment.