Consider the following model of the labor market:
Labor supply: $L ^ { 5 } = \bar { a } \times w + \bar { \ell }$
Labor demand: $L ^ { d } = \bar { f } - w$

The endogenous variables are:
A) $\bar { f }$ and $\bar { a }$
B) $\bar { a }$ and the equilibrium wage, w
C) $\bar { f }$ and the equilibrium wage, w
D) the equilibrium quantity of labor, L, and wage, w
E) $\bar { a }$ and the equilibrium quantity of labor, L

Question

Consider the following model of the labor market:
Labor supply: $L ^ { 5 } = \bar { a } \times w + \bar { \ell }$
Labor demand: $L ^ { d } = \bar { f } - w$
 
The endogenous variables are:
A) $\bar { f }$ and   $\bar { a }$
B) $\bar { a }$ and the equilibrium wage, w
C) $\bar { f }$ and the equilibrium wage, w
D) the equilibrium quantity of labor, L, and wage, w
E) $\bar { a }$ and the equilibrium quantity of labor, L

Quizplus · Accepted Answer

The endogenous variables in a labor market model are typically the equilibrium wage (w) and the equilibrium quantity of labor (L), as these are determined within the model.

Consider the Following Model of the Labor Market: Labor Supply L5=aˉ×w+ℓˉL ^ { 5 } = \bar { a } \times w + \bar { \ell }L5=aˉ×w+ℓˉ

Consider the Following Model of the Labor Market:
Labor Supply $L ^ { 5 } = \bar { a } \times w + \bar { \ell }$