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:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Unadjusted Trial Balance

A list of all the accounts and their balances from the general ledger before any adjusting entries are made.

Gross Profit

The difference between sales and the cost of goods sold.

Periodic Inventory Method

An accounting approach where inventory is physically counted at specific intervals to determine the cost of goods sold and ending inventory levels.