Test Bank Introductory Econometrics A Modern Approach , 6th Edition A+

$35.00
Test Bank Introductory Econometrics A Modern Approach , 6th Edition A+

Test Bank Introductory Econometrics A Modern Approach , 6th Edition A+

$35.00
Test Bank Introductory Econometrics A Modern Approach , 6th Edition A+

Econometrics is the branch of economics that _____.​

a.

​studies the behavior of individual economic agents in making economic decisions

b.

​develops and uses statistical methods for estimating economic relationships

c.

​deals with the performance, structure, behavior, and decision-making of an economy as a whole

d.

​applies mathematical methods to represent economic theories and solve economic problems

ANSWER:

b

RATIONALE:

FEEDBACK: Econometrics is the branch of economics that develops and uses statistical methods for estimating economic relationships.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

What is Econometrics?

KEYWORDS:

Bloom’s: Knowledge

2. Nonexperimental data is called _____.​

a.

​cross-sectional data

b.

​observational data

c.

​time series data

d.

​panel data

ANSWER:

b

RATIONALE:

FEEDBACK: Nonexperimental data is called observational data.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

What is Econometrics?

KEYWORDS:

Bloom’s: Knowledge

3. Which of the following is true of experimental data?

a.

Experimental data are collected in laboratory environments in the natural sciences.

b.

Experimental data cannot be collected in a controlled environment.

c.

Experimental data is sometimes called observational data.

d.

Experimental data is sometimes called retrospective data.

ANSWER:

a

RATIONALE:

FEEDBACK: Experimental data are collected in laboratory environments in the natural sciences.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

What is Econometrics?

KEYWORDS:

Bloom’s: Knowledge

4. An empirical analysis relies on _____ to test a theory.

a.

common sense

b.

ethical considerations

c.

data

d.

customs and conventions

ANSWER:

c

RATIONALE:

FEEDBACK: An empirical analysis relies on data to test a theory.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

Steps in Empirical Economic Analysis

KEYWORDS:

Bloom’s: Knowledge

5. The term ‘u’ in an econometric model is usually referred to as the _____.

a.

error term

b.

parameter

c.

hypothesis

d.

dependent variable

ANSWER:

a

RATIONALE:

FEEDBACK: The term u in an econometric model is called the error term or disturbance term.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

Steps in Empirical Economic Analysis

KEYWORDS:

Bloom’s: Knowledge

6. The constants of econometric models are referred to as _____.​

a.

​parameters

b.

​statistics

c.

​error terms

d.

​hypotheses

ANSWER:

a

RATIONALE:

FEEDBACK: The constants of econometric models are referred to as parameters​.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

Steps in Empirical Economic Analysis

KEYWORDS:

Bloom's: Knowledge

7. The parameters of an econometric model _____.

a.

include all unobserved factors affecting the variable being studied

b.

describe the strength of the relationship between the variable under study and the factors affecting it

c.

refer to the explanatory variables included in the model

d.

refer to the predictions that can be made using the model

ANSWER:

a

RATIONALE:

FEEDBACK: The parameters of an econometric model describe the direction and strength of the relationship between the variable under study and the factors affecting it.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

Steps in Empirical Economic Analysis

KEYWORDS:

Bloom’s: Knowledge

8. Which of the following is the first step in empirical economic analysis?

a.

Collection of data

b.

Statement of hypotheses

c.

Specification of an econometric model

d.

Testing of hypotheses

ANSWER:

c

RATIONALE:

FEEDBACK: The first step in empirical economic analysis is the specification of the econometric model.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

Steps in Empirical Economic Analysis

KEYWORDS:

Bloom’s: Knowledge

9. A data set that consists of a sample of individuals, households, firms, cities, states, countries, or a variety of other units, taken at a given point in time, is called a(n) _____.

a.

cross-sectional data set

b.

longitudinal data set

c.

time series data set

d.

experimental data set

ANSWER:

a

RATIONALE:

FEEDBACK: A data set that consists of a sample of individuals, households, firms, cities, states, countries, or a variety of other units, taken at a given point in time, is called a cross-sectional data set.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

The Structure of Economic Data

KEYWORDS:

Bloom’s: Knowledge

10. Data on the income of law graduates collected at different times during the same year is _____.

a.

panel data

b.

experimental data

c.

time series data

d.

cross-sectional data

ANSWER:

d

RATIONALE:

FEEDBACK: A data set that consists of a sample of individuals, households, firms, cities, states, countries, or a variety of other units, taken at a given point in time, is called a cross-sectional data set. Therefore, data on the income of law graduates on a particular year are examples of cross-sectional data.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic - BUSPROG: Analytic

TOPICS:

The Structure of Economic Data

KEYWORDS:

Bloom’s: Application

11. A data set that consists of observations on a variable or several variables over time is called a _____ data set.

a.

binary

b.

cross-sectional

c.

time series

d.

experimental

ANSWER:

c

RATIONALE:

FEEDBACK: A time-series data set consists of observations on a variable or several variables over time.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

The Structure of Economic Data

KEYWORDS:

Bloom’s: Knowledge

12. ​Which of the following is true of time series data?

a.

​The time series data is easier to analyze than cross-sectional data.

b.

​The time series data are independent across time.

c.

​The chronological ordering of observations in a time series conveys potentially important information.

d.

​A time series data set consists of observations on a variable or several variables at a given time.

ANSWER:

c

RATIONALE:

FEEDBACK: The chronological ordering of observations in a time series conveys potentially important information.

POINTS:

1

DIFFICULTY:

Moderate

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

The Structure of Economic Data

KEYWORDS:

Bloom’s: Knowledge

13. Which of the following is an example of time series data?

a.

Data on the unemployment rates in different parts of a country during a year.

b.

Data on the consumption of wheat by 200 households during a year.

c.

Data on the gross domestic product of a country over a period of 10 years.

d.

Data on the number of vacancies in various departments of an organization on a particular month.

ANSWER:

c

RATIONALE:

FEEDBACK: A time-series data set consists of observations on a variable or several variables over time. Therefore, data on the gross domestic product of a country over a period of 10 years is an example of time series data.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic - BUSPROG: Analytic

TOPICS:

The Structure of Economic Data

KEYWORDS:

Bloom’s: Application

14. Which of the following refers to panel data?

a.

Data on the unemployment rate in a country over a 5-year period

b.

Data on the birth rate, death rate and population growth rate in developing countries over a 10-year period.

c.

Data on the income of 5 members of a family on a particular year.

d.

Data on the price of a company’s share during a year.

ANSWER:

b

RATIONALE:

FEEDBACK: A panel data set consists of a time series for each cross-sectional member in the data set. Therefore, data on the birth rate, death rate and infant mortality rate in developing countries over a 10-year period refers to panel data.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic - BUSPROG: Analytic

TOPICS:

The Structure of Economic Data

KEYWORDS:

Bloom’s: Application

15. Which of the following is a difference between panel and pooled cross-sectional data?

a.

A panel data set consists of data on different cross-sectional units over a given period of time while a pooled data set consists of data on the same cross-sectional units over a given period of time.

b.

A panel data set consists of data on the same cross-sectional units over a given period of time while a pooled data set consists of data on different cross-sectional units over a given period of time

c.

A panel data consists of data on a single variable measured at a given point in time while a pooled data set consists of data on the same cross-sectional units over a given period of time.

d.

A panel data set consists of data on a single variable measured at a given point in time while a pooled data set consists of data on more than one variable at a given point in time.

ANSWER:

b

RATIONALE:

FEEDBACK: A panel data set consists of data on the same cross-sectional units over a given period of time while a pooled data set consists of data on the same cross-sectional units over a given period of time.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

The Structure of Economic Data

KEYWORDS:

Bloom’s: Knowledge

16. _____ has a causal effect on _____.

a.

Income; unemployment

b.

Height; health

c.

Income; consumption

d.

Age; wage

ANSWER:

c

RATIONALE:

FEEDBACK: Income has a causal effect on consumption because an increase in income leads to an increase in consumption.

POINTS:

1

DIFFICULTY:

Moderate

NATIONAL STANDARDS:

United States - BUSPROG: Analytic - BUSPROG: Analytic

TOPICS:

Causality and the Notion of Ceteris Paribus in Econometric Analysis

KEYWORDS:

Bloom’s: Application

17. Which of the following is true?

a.

A variable has a causal effect on another variable if both variables increase or decrease simultaneously.

b.

The notion of ‘ceteris paribus’ plays an important role in causal analysis.

c.

Difficulty in inferring causality disappears when studying data at fairly high levels of aggregation.

d.

The problem of inferring causality arises if experimental data is used for analysis.

ANSWER:

b

RATIONALE:

FEEDBACK: The notion of ‘ceteris paribus’ plays an important role in causal analysis.

POINTS:

1

DIFFICULTY:

Moderate

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

Causality and the Notion of Ceteris Paribus in Econometric Analysis

KEYWORDS:

Bloom’s: Knowledge

18. Which of the following terms measures the association between two variables?

a.

Casual effect

b.

​Independence

c.

​Average

d.

​Correlation

ANSWER:

d

RATIONALE:

FEEDBACK: The association between two variables are measured by correlation.​

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

Causality and the Notion of Ceteris Paribus in Econometric Analysis

KEYWORDS:

Bloom's: Comprehension

19. Experimental data are sometimes called retrospective data.

a.

True

b.

False

ANSWER:

False

RATIONALE:

FEEDBACK: Nonexperimental data are sometimes called retrospective data.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

What is Econometrics?

KEYWORDS:

Bloom’s: Knowledge

20. ​Experimental data are easy to obtain in the social sciences.

a.

True

b.

False

ANSWER:

False

RATIONALE:

FEEDBACK: ​Experimental data are more difficult to obtain in the social sciences.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

What is Econometrics?

KEYWORDS:

Bloom's: Knowledge

21. An economic model consists of mathematical equations that describe various relationships between economic variables.

a.

True

b.

False

ANSWER:

True

RATIONALE:

FEEDBACK: An economic model consists of mathematical equations that describe various relationships between economic variables.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

Steps in Empirical Economic Analysis

KEYWORDS:

Bloom’s: Knowledge

22. ​Random sampling complicates the analysis of cross-sectional data.

a.

True

b.

False

ANSWER:

False

RATIONALE:

FEEDBACK: An important feature of cross-sectional data is that we can often assume that they have been obtained byrandom samplingfrom the underlying population and it simplifies the analysis of cross-sectional data.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

The Structure of Economic Data

KEYWORDS:

Bloom's: Knowledge

23. A cross-sectional data set consists of observations on a variable or several variables over time.

a.

True

b.

False

ANSWER:

False

RATIONALE:

FEEDBACK: A time series data set consists of observations on a variable or several variables over time.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

The Structure of Economic Data

KEYWORDS:

Bloom’s: Knowledge

24. A time series data is also called a longitudinal data set.

a.

True

b.

False

ANSWER:

False

RATIONALE:

FEEDBACK: A panel data is also called a longitudinal data set.

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

The Structure of Economic Data

KEYWORDS:

Bloom’s: Knowledge

25. The notion ofceteris paribusmeans “other factors being equal.”​

a.

True

b.

False

ANSWER:

True

RATIONALE:

FEEDBACK: The notion of ceteris paribus means “other factors being equal.”

POINTS:

1

DIFFICULTY:

Easy

NATIONAL STANDARDS:

United States - BUSPROG: Analytic

TOPICS:

Causality and the Notion of Ceteris Paribus in Econometric Analysis

KEYWORDS:

Bloom’s: Knowledge

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