The distinction between exogenous and endogenous variables is important because:
a. Endogenous variables are determined within the Three-Sector-Model while exogenous variables are not. Exogenous variables are therefore treated as shocks to the Three-Sector-Model.
b. Exogenous variables are fixed by definition.
c. Endogenous variables are fixed by definition.
d. Exogenous variables are determined within the Three-Sector-Model while endogenous variables are not. Endogenous variables are therefore treated as shocks to the three markets.
e. Endogenous variables are real factors while exogenous variables are nominal factors.
.A
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If the current exchange rate is 1.00 euro per dollar and the expected exchange rate at the end of the month rises to 1.20 euros per dollar, then the demand for dollars ________ because people expect holding of dollars to become ________ profitable
A) decreases; more B) increases; less C) increases; more D) does not change; neither more nor less E) decreases; less
________ of people work at firms that have 50 or more employees
A) Less than 25 percent B) About 50 percent C) More than 75 percent D) Close to 97 percent
If autonomous consumption is greater than zero and the marginal propensity to consume is greater than zero, but less than one, the consumption function will first be above and then below the 45 degree line
a. True b. False Indicate whether the statement is true or false
At point A, 
A. MC = MR. B. The firm would do worst by shutting down. C. MC > MR. D. The firm is making positive economic profit.