In the Equation

question 54

Multiple Choice

In the equation
,the lack of a "bar" over the L means that it is:

• A)an exogenous variable.
• B)an endogenous variable.
• C)a parameter.
• D)constant.
• E)equal to one.

---

Definitions:

Competitive Equilibrium

A state in a market where supply equals demand, and the prices enable buyers and sellers to be in equilibrium.

Demand Equals Supply

A market equilibrium condition where the quantity demanded by consumers at a specific price level is exactly equal to the quantity supplied by producers.

Initial Endowment

The initial allocation of assets, goods, or resources that an individual or entity possesses before any transactions.

Pareto Optimal

An economic state where it is impossible to make one party better off without making at least one party worse off.