Test Bank –Introductory Econometrics: A Modern
Approach, 8th Edition Author:Jeffrey M. Wooldridge
All Chapters Covered 100% Complete A+ Study
Guide Latest Version
FULL TEST BANK!!!
1|Page
, Cha pter 1
1. Econometrics is the branch of economics that .
a. studies the behavior of individual econom ic agents in making econom ic decisions
b. develops and uses statistical methods for estimating econom ic relationships
c. deals with the performance, structure, behavior, and decisio n-making of a n economy
as a w hole
d. applies mathematical methods to represe nt economic theories and solve eco nomic
problems.
Answer: b Difficulty: Easy
Bloom ’s: Knowledge
A-Head: What is Econometrics? BUSPROG:
Feedback: Econometrics is the branch of economics that develops and uses statistical methods for
estimating economic relationships.
2. Nonexperimental data is called .
a. cross-sectional data
b. time series data
c. observational data
d. panel data
Answer: b Difficulty: Easy
Bloom ’s: Knowledge
A-Head: What is Econometrics? BUSPROG:
Feedback:
3. Which of the following is true of experimental data?
a. Experimental data are colle cted in laboratory enviro nments in the natural sciences.
b. Experimental data cannot be collected in a controlle d environment.
c. Experimental data is som etimes called observational data.
d. Experimental data is som etimes called retrospective data.
Answer: a Difficulty: Easy
2|Page
, Bloom ’s: Knowledge
A-Head: What is Econometrics? BUSPROG:
Feedback:
4. An empirical analysis relies on to test a theory.
a. common sense
b. ethical considerations
c. data
d. customs and conventions
Answer: c
Difficulty: Easy
Bloom ’s: Knowledge
A-Head: Steps in Empirical Economic Analysis BUSPROG:
Feedback: An empirical analysis relies on data to test a theory.
5. The term ‘u’ in an econometric model is usually referre d to as the .
a. error term
b. parameter
c. hypothesis
d. dependent variable
Answer: a
Difficulty: Easy
Bloom ’s: Knowledge
A-Head: Steps in Empirical Economic Analysis BUSPROG:
Feedback: The term u in an econometric model is called the error term or disturbance
term.
6. The parameters of an econometric model .
a. include all unobserved factors affe cting the varia ble being studied
b. describe the strength of the relatio nship betwee n 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: b
Difficulty: Easy
Bloom ’s: Knowledge
A-Head: Steps in Empirical Economic Analysis BUSPROG:
3|Page
, Feedback: The parameters of an econometric model describe the direction and stre ngth
of the relatio nship between the variable under study and the factors affe cting it.
7. Which of the following is the first step in empirical econom ic analysis?
a. Collection of data
b. Statement of hypotheses
c. Specification of an econometric model
d. Testing of hypotheses
Answer: c
Difficulty: Easy
Bloom ’s: Knowledge
A-Head: Steps in Empirical Economic Analysis BUSPROG:
Feedback: The first step in empirical economic analysis is the specification of the
econometric model.
8. A data set that consists of a sa mple of individuals, house holds, 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
Difficulty: Easy
Bloom ’s: Knowledge
A-Head: The Structure of E conomic Data
BUSPROG:
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-sectio nal data set.
9. 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
Difficulty: Easy
4|Page
Approach, 8th Edition Author:Jeffrey M. Wooldridge
All Chapters Covered 100% Complete A+ Study
Guide Latest Version
FULL TEST BANK!!!
1|Page
, Cha pter 1
1. Econometrics is the branch of economics that .
a. studies the behavior of individual econom ic agents in making econom ic decisions
b. develops and uses statistical methods for estimating econom ic relationships
c. deals with the performance, structure, behavior, and decisio n-making of a n economy
as a w hole
d. applies mathematical methods to represe nt economic theories and solve eco nomic
problems.
Answer: b Difficulty: Easy
Bloom ’s: Knowledge
A-Head: What is Econometrics? BUSPROG:
Feedback: Econometrics is the branch of economics that develops and uses statistical methods for
estimating economic relationships.
2. Nonexperimental data is called .
a. cross-sectional data
b. time series data
c. observational data
d. panel data
Answer: b Difficulty: Easy
Bloom ’s: Knowledge
A-Head: What is Econometrics? BUSPROG:
Feedback:
3. Which of the following is true of experimental data?
a. Experimental data are colle cted in laboratory enviro nments in the natural sciences.
b. Experimental data cannot be collected in a controlle d environment.
c. Experimental data is som etimes called observational data.
d. Experimental data is som etimes called retrospective data.
Answer: a Difficulty: Easy
2|Page
, Bloom ’s: Knowledge
A-Head: What is Econometrics? BUSPROG:
Feedback:
4. An empirical analysis relies on to test a theory.
a. common sense
b. ethical considerations
c. data
d. customs and conventions
Answer: c
Difficulty: Easy
Bloom ’s: Knowledge
A-Head: Steps in Empirical Economic Analysis BUSPROG:
Feedback: An empirical analysis relies on data to test a theory.
5. The term ‘u’ in an econometric model is usually referre d to as the .
a. error term
b. parameter
c. hypothesis
d. dependent variable
Answer: a
Difficulty: Easy
Bloom ’s: Knowledge
A-Head: Steps in Empirical Economic Analysis BUSPROG:
Feedback: The term u in an econometric model is called the error term or disturbance
term.
6. The parameters of an econometric model .
a. include all unobserved factors affe cting the varia ble being studied
b. describe the strength of the relatio nship betwee n 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: b
Difficulty: Easy
Bloom ’s: Knowledge
A-Head: Steps in Empirical Economic Analysis BUSPROG:
3|Page
, Feedback: The parameters of an econometric model describe the direction and stre ngth
of the relatio nship between the variable under study and the factors affe cting it.
7. Which of the following is the first step in empirical econom ic analysis?
a. Collection of data
b. Statement of hypotheses
c. Specification of an econometric model
d. Testing of hypotheses
Answer: c
Difficulty: Easy
Bloom ’s: Knowledge
A-Head: Steps in Empirical Economic Analysis BUSPROG:
Feedback: The first step in empirical economic analysis is the specification of the
econometric model.
8. A data set that consists of a sa mple of individuals, house holds, 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
Difficulty: Easy
Bloom ’s: Knowledge
A-Head: The Structure of E conomic Data
BUSPROG:
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-sectio nal data set.
9. 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
Difficulty: Easy
4|Page
