What is the difference between an endogenous variable and an exogenous variable?
What will be an ideal response?
An endogenous variable is a variable explained by an economic model. An exogenous variable is a variable that is taken as given and is not explained by an economic model.
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Assume that Joe is willing to produce a hamburger for $1, and Mary is willing to pay $3 for a hamburger. Which of the following is true?
A. Joe and Mary cannot make a mutually beneficial exchange. B. Joe and Mary will only trade if the equilibrium price is less than $1. C. Joe and Mary can make a mutually beneficial exchange. D. Joe and Mary will not trade in equilibrium.
The value of a producer's output minus the value of all intermediate goods used in the production of that output is called the producer's
A) net output. B) accounting profit. C) value added. D) profit margin.
The third largest source of government tax revenues that contributes roughly 10 percent to total revenues is:
A. payroll tax. B. personal income tax. C. corporate income tax. D. excise tax.
Demand-pull inflation is most pronounced during a recession (as opposed to the recovery phase of the business cycle)
a. True b. False Indicate whether the statement is true or false