1.In demand analysis, endogenous variables include:
a. the weather
b. consumer incomes
c. interest rates
d company advertising
2. Which of the following is a leading economic indicator?
a. average prime rate charged by banks
b. commercial and industrial loans outstanding
c. change in credit for business and consumer borrowing
d. ratio of constant dollar inventories to sales for manufacture and trade.
3. The returns to scale characteristic of a production system:
a. is measured by the way in which inputs can be varied in an unbroken marginal fashion rather than incrementally.
b. illustrates the distinct , or lumpy, pattern of input combination.
c. shows the relation between output and variation in only one of the inputs employed.
d. is the relation between output and variation in only one of the inputs employed.
4. In long-run equilibrium, the monopolistically competitive firm will set a price equal to:
a. average cost
b. average variable cost
c. marginal cost
d minimum long run average cost.
Answer 1: (D)
Endogenous variable is the one which can be controlled by the company. Advertising can definitely be controlled by the company.
Answer 2: ...
The solution answers the questions below in detail.