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1. Econometrics is the branch of economics that vn . vn vn vn vn vn
a. studies the behavior of individual economic agents in making economic decisions
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b. develops and uses statistical methods for estimating economic relationships
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c. deals with the performance, structure, behavior, and decision-making of an economy as a whole
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d. applies mathematical methods to represent economic theories and solve economic problems.
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Answer: b vn
Difficulty:
vn
Easy
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Bloom’s: Knowledge
vn
A-Head: What is
vn vn
Econometrics? BUSPROG:
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Feedback: Econometrics is the branch of economics that develops and uses statistical methods for
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estimating economic relationships.
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2. Nonexperimental data is called vn vn vn .
a. cross-sectional data vn
b. time series data
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c. observational data vn
d. panel data
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Answer: b vn
Difficulty:
vn
Easy
vn
Bloom’s: Knowledge
vn
A-Head: What is
vn vn
Econometrics? BUSPROG:
vn vn
Feedback:
3. Which of the following is true of experimental data?
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a. Experimental data are collected in laboratory environments in the natural sciences.
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b. Experimental data cannot be collected in a controlled environment.
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c. Experimental data is sometimes called observational data.
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d. Experimental data is sometimes called retrospective data.
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Answer: a vn
Difficulty:
vn
Easy
vn
Bloom’s: Knowledge
vn
A-Head: What is Econometrics?
vn vn vn
,BUSPROG:
Feedback:
4. An empirical analysis relies on
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a. common sense vn
b. ethical considerations vn
c. data
d. customs and conventions vn vn
Answer: c vn
Difficulty:
vn
Easy
vn
Bloom’s: Knowledge vn
A-Head: Steps in Empirical Economic Analysis
vn vn vn vn vn
BUSPROG:
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Feedback: An empirical analysis relies on data to test a theory.
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5. The term ‘u’ in an econometric model is usually referred to as the
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a. error term vn
b. parameter
c. hypothesis
d. dependent variable vn
Answer: a vn
Difficulty:
vn
Easy
vn
Bloom’s: Knowledge vn
A-Head: Steps in Empirical Economic Analysis
vn vn vn vn vn
BUSPROG:
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Feedback: The term u in an econometric model is called the error term or disturbance term.
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6. The parameters of an econometric model
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a. include all unobserved factors affecting the variable being studied
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b. describe the strength of the relationship between the variable under study and the factors
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affecting it
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c. refer to the explanatory variables included in the model
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d. refer to the predictions that can be made using the model
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Answer: b vn
Difficulty:
vn
Easy
vn
Bloom’s: Knowledge vn
A-Head: Steps in Empirical Economic Analysis
vn vn vn vn vn
BUSPROG:
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Feedback: The parameters of an econometric model describe the direction and strength of the
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, relationship between the variable under study and the factors affecting it.
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1. Econometrics is the branch of economics that vn . vn vn vn vn vn
a. studies the behavior of individual economic agents in making economic decisions
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b. develops and uses statistical methods for estimating economic relationships
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c. deals with the performance, structure, behavior, and decision-making of an economy as a whole
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d. applies mathematical methods to represent economic theories and solve economic problems.
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Answer: b vn
Difficulty:
vn
Easy
vn
Bloom’s: Knowledge
vn
A-Head: What is
vn vn
Econometrics? BUSPROG:
vn vn
Feedback: Econometrics is the branch of economics that develops and uses statistical methods for
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estimating economic relationships.
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2. Nonexperimental data is called vn vn vn .
a. cross-sectional data vn
b. time series data
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c. observational data vn
d. panel data
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Answer: b vn
Difficulty:
vn
Easy
vn
Bloom’s: Knowledge
vn
A-Head: What is
vn vn
Econometrics? BUSPROG:
vn vn
Feedback:
3. Which of the following is true of experimental data?
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a. Experimental data are collected in laboratory environments in the natural sciences.
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b. Experimental data cannot be collected in a controlled environment.
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c. Experimental data is sometimes called observational data.
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d. Experimental data is sometimes called retrospective data.
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Answer: a vn
Difficulty:
vn
Easy
vn
Bloom’s: Knowledge
vn
A-Head: What is Econometrics?
vn vn vn
,BUSPROG:
Feedback:
4. An empirical analysis relies on
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a. common sense vn
b. ethical considerations vn
c. data
d. customs and conventions vn vn
Answer: c vn
Difficulty:
vn
Easy
vn
Bloom’s: Knowledge vn
A-Head: Steps in Empirical Economic Analysis
vn vn vn vn vn
BUSPROG:
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Feedback: An empirical analysis relies on data to test a theory.
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5. The term ‘u’ in an econometric model is usually referred to as the
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a. error term vn
b. parameter
c. hypothesis
d. dependent variable vn
Answer: a vn
Difficulty:
vn
Easy
vn
Bloom’s: Knowledge vn
A-Head: Steps in Empirical Economic Analysis
vn vn vn vn vn
BUSPROG:
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Feedback: The term u in an econometric model is called the error term or disturbance term.
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6. The parameters of an econometric model
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a. include all unobserved factors affecting the variable being studied
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b. describe the strength of the relationship between the variable under study and the factors
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affecting it
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c. refer to the explanatory variables included in the model
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d. refer to the predictions that can be made using the model
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Answer: b vn
Difficulty:
vn
Easy
vn
Bloom’s: Knowledge vn
A-Head: Steps in Empirical Economic Analysis
vn vn vn vn vn
BUSPROG:
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Feedback: The parameters of an econometric model describe the direction and strength of the
vn vn vn vn vn vn vn vn vn vn vn vn vn
, relationship between the variable under study and the factors affecting it.
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