In building an economic model, variables that will be explained by the model are referred to as ________ variables
A) exogenous
B) endogenous
C) fluctuating
D) demonstrative
B
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Suppose the stock market rises, causing a rapid increase in consumers' wealth. This would lead to
a. a downward movement along the consumption function. b. a downward shift of the consumption function. c. an upward movement along the consumption function. d. an upward shift of the consumption function.
When Feeding America changed its food allocation system to one that resembled a market, each food program was given a number of "shares" that they could use in bidding against other food programs for the types of food that best met the needs of the
people using their programs. This is an example of how the market leads firms to provide consumers with the goods they want, which Adam Smith described by using the metaphor A) the invisible hand. B) ceteris paribus. C) don't look a gift horse in the mouth. D) don't bite the hand that feeds you.