TEST BANK for Introduction to Econometrics 4th Edition by James Stock and Mark Watson - All Chapters 1-19

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, IntroductiontoEconometrics,4e(Stock/Watson)
r1 Chapter 1 Economic Questionsand Data
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1.1 r1 r1 MultipleChoiceQuestions


1) Analyzingthebehaviorofunemploymentratesacross U.S.statesin Marchof2006is an 1r - 1r




r1 exampleofusing:
A) timeseriesdata.
B) paneldata.
C) cross-sectionaldata.
D) experimentaldata.
Answer: C
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2) Studying inflationinthe United Statesfrom 1970to 2006 is an exampleofusing:
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A) randomized controlledexperiments.
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B) time seriesdata. -




C) paneldata.
D) cross-sectionaldata.
Answer: B
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3) Analyzingtheeffectofminimumwagechangesonteenageemploymentacrossthe48 1r




r1 contiguous U.S. statesfrom 1980 to 2004 is an exampleofusing:
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A) timeseriesdata.
B) paneldata.
C) havingatreatment groupvs.acontrolgroup, - r 1 r 1 sinceonlyteenagersreceive minimum wages.
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D) cross-sectionaldata.
Answer: B
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4) Paneldata:
A) isalsocalledlongitudinaldata.
B) isthesameas timeseriesdata. r1




C) studiesagroupofpeople at apointin time. - - -




D) typicallyusescontrolandtreatmentgroups.
Answer: A
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5) Econometricscanbedefined as followswiththeexception of: r1 r1 -




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, A) thescienceoftestingeconomictheory.
B) fittingmathematicaleconomic modelsto real-world data. - - -




C) asetoftoolsusedforforecastingfuturevaluesofeconomicvariables.
D) measuring theheightofeconomists. -




r1 Answer: D r1




6) Toprovidequantitative answerstopolicyquestions: r1




A) it is typicallysufficienttouse commonsense.
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B) youshouldinterviewthepolicymakersinvolved.
C) youshouldexamineempiricalevidence.
D) istypicallyimpossiblesincepolicyquestionsarenotquantifiable.
r 1 Answer: C r1




7) Anexampleof arandomizedcontrolled experimentiswhen:
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A) householdsreceiveataxrebatein oneyearbutnot theother. - -




B) oneU.S. stateincreasesminimumwagesand an adjacentstatedoes not, and
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r1 employment differencesareobserved.
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C) randomvariablesarecontrolled forbyholding constantotherfactors. - -




D) some5th gradersin aspecificelementaryschoolareallowed tousecomputers at school
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r 1 whileothersarenot, andtheirend-of-yearperformanceiscomparedholding constantother
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r1 factors.
Answer: D r1




8) Idealrandomizedcontrolled experimentsineconomics are: - -




A) oftenperformedinpractice.
B) oftenusedbythe Federal Reservetostudytheeffectsofmonetarypolicy.
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C) usefulbecausetheygivea definition ofacausaleffect. - -




D) sometimesusedbyuniversities todeterminewhograduates infouryears ratherthan - - - - r 1




r 1 five. Answer: C
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9) Mosteconomicdataareobtained:
A) throughrandomizedcontrolledexperiments.
B) bycalibrationmethods.
C) throughtextbook examplestypicallyinvolvingten observationpoints.
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D) byobservingreal-worldbehavior.
r1 Answer: D r1




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