An Endogenous Variable

question 6

Multiple Choice

An endogenous variable

• A) is the independent variable in an economic model.
• B) is assumed to be determined by factors outside the scope of the model.
• C) is the impulse that causes a change in the exogenous variable.
• D) is the response to a change in the exogenous variable.
• E) is the rental rate of capital in the labor demand equation.

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Definitions:

Retail Method

A pricing strategy used to estimate the value of a store's merchandise by considering the initial cost of inventory and its markup to retail price.

Cost To Retail Price

A pricing strategy where the selling price of an item is determined by adding a margin to its cost.

Retail Method

An accounting method used in the retail industry to estimate inventory value, based on the ratio of the cost of goods to the retail price.

Estimated Inventory

An approximation of the amount of inventory a company has, often used when actual counts are not feasible, based on sales and receipts data.