Suppose there is a theory that several things influence the price of fish in Halifax,one of which is the weather during the fishing season.When examining the determinants of the price of fish,the weather is
A)an endogenous variable,as it influences the price of fish.
B)an exogenous variable,as it is determined outside the theory.
C)a stock,as it influences the quantity of fish caught.
D)an act of God and,therefore,has no legitimate connection with the theory.
E)an endogenous variable,as it is determined within the theory.

Question

Quizplus · Accepted Answer

The weather is not determined within the theory of the determinants of the price of fish and is therefore an exogenous variable. It is influenced by factors outside the theory, such as climate patterns and atmospheric conditions.

Suppose There Is a Theory That Several Things Influence the Price