Introduction to Econometrics 4th Edition by James Stock and Mark Watson. ISBN-
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. Chapters 1-19
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, Introduction to Econometrics 4th Edition by James Stock and Mark Watson. ISBN-
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. Chapters 1-19
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Introduction to Econometrics, 4e (Stock/Watson)
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xw d Chapter 1 wd w d Economic Questions and Data wd wd wd
1.1 Multiple Choice Questions wd wd
1) Analyzing the behavior of unemployment rates across U.S. states in March of 2006
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A) time series data.
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B) panel data. wd
C) cross-sectional data. wd
D) experimental data wd
.Answer: wdwd C
2) Studying inflation in the United States from 1970 to 2006 is an example of using:
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A) randomized controlled experiments. sx wd
B) time series data.
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C) panel data. wd
D) cross-
sectional data.Answer:wd
B
3) Analyzing the effect of minimum wage changes on teenage employment across t
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he 4 8contiguous U.S. states from 1980 to 2004 is an example of using:
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A) time series data.
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B) panel data. wd
C) having a treatment group vs. a control group, since only teenagers receive minimum wages.
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D) cross-
sectional data.Answer wd
:
B
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, Introduction to Econometrics 4th Edition by James Stock and Mark Watson. ISBN-
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4). Panel data:1-19
Chapters
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A) is also called longitudinal data.
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B) is the same as time series data.
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C) studies a group of people at a point in time.
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D) typically uses control and treatment groupswd wd wd wd wd
.Answer: wd wd A
5) Econometrics can be defined as follows with the exception of: wd wd wd wd wd wd wd wd wd
A) the science of testing economic theory.
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B) fitting mathematical economic models to real-world data.
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C) a set of tools used for forecasting future values of economic variables.
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D) measuring the height of economists wd wd wd wd
.Answer: wd wd D
6) To provide quantitative answers to policy questions:
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A) it is typically sufficient to use common sense.
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B) you should interview the policy makers involved.
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C) you should examine empirical evidence.
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D) is typically impossible since policy questions are not quantifiable
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.Answer: wdwd C
7) An example of a randomized controlled experiment is when:
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A) households receive a tax rebate in one year but not the other.
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B) one U.S. state increases minimum wages and an adjacent state does not
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, an demployment differences are observed.
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C) random variables are controlled for by holding constant other factors.
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D) some 5th graders in a specific elementary school are allowed to use computers at
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scho olwhile others are not, and their end-of-
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year performance is compared holding constant otherfactors. Ans
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wer: w d D
8) Ideal randomized controlled experiments in economics are:
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A) often performed in practice. wd wd wd
B) often used by the Federal Reserve to study the effects of monetary policy.
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C) useful because they give a definition of a causal effect.
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D) sometimes used by universities to determine who graduates in four years rather
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wd tha nfive. Answer:
wd w d w d C
Test Ban wd Page 3
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, Introduction to Econometrics 4th Edition by James Stock and Mark Watson. ISBN-
wd wd wd wd wd wd wd wd wd wd wd
. Chapters 1-19
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9) Most economic data are obtained:
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A) through randomized controlled experiments.
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B) by calibration methods.
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C) through textbook examples typically involving ten observation points.
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D) by observing real-
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world behavior.Answer:
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10) One of the primary advantages of using econometrics over typical results from eco
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nomi ctheory, is that:
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A) it potentially provides you with quantitative answers for a policy problem rather than s
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impl ysuggesting the direction (positive/negative) of the response.
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B) teaching you how to use statistical packages
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C) learning how to invert a 4 by 4 matrix.
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D) all of the above
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. Answer:
wd w d A
11) In a randomized controlled experiment:
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A) there is a control group and a treatment group.
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B) you control for the effect that random numbers are not truly randomly generated
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C) you control for random answers
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D) the control group receives treatment on even days only
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.Answer: wd wd A
12) The reason why economists do not use experimental data more frequently is for al
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l of t hefollowing reasons EXCEPT that real-world experiments:
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A) cannot be executed in economics.
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B) with humans are difficult to administer.
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C) are often unethical.
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D) have flaws relative to ideal randomized controlled experiments
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.Answer: wd wd A
13) The most frequently used experimental or observational data in econometrics are
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of th efollowing type:
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A) cross-sectional data. wd
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L
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. Chapters 1-19
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Test Ban
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, Introduction to Econometrics 4th Edition by James Stock and Mark Watson. ISBN-
wd wd wd wd wd wd wd wd wd wd wd
. Chapters 1-19
wd wd
Introduction to Econometrics, 4e (Stock/Watson)
wd wd wd wd s
xw d Chapter 1 wd w d Economic Questions and Data wd wd wd
1.1 Multiple Choice Questions wd wd
1) Analyzing the behavior of unemployment rates across U.S. states in March of 2006
wd wd wd wd wd wd wd wd wd wd wd wd
wd is a nexample of using:
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A) time series data.
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B) panel data. wd
C) cross-sectional data. wd
D) experimental data wd
.Answer: wdwd C
2) Studying inflation in the United States from 1970 to 2006 is an example of using:
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A) randomized controlled experiments. sx wd
B) time series data.
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C) panel data. wd
D) cross-
sectional data.Answer:wd
B
3) Analyzing the effect of minimum wage changes on teenage employment across t
wd wd wd wd wd wd wd wd wd wd wd
he 4 8contiguous U.S. states from 1980 to 2004 is an example of using:
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A) time series data.
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B) panel data. wd
C) having a treatment group vs. a control group, since only teenagers receive minimum wages.
wd wd wd wd wd wd wd wd wd wd wd wd wd
D) cross-
sectional data.Answer wd
:
B
Test Banwd Page 2
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, Introduction to Econometrics 4th Edition by James Stock and Mark Watson. ISBN-
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4). Panel data:1-19
Chapters
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A) is also called longitudinal data.
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B) is the same as time series data.
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C) studies a group of people at a point in time.
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D) typically uses control and treatment groupswd wd wd wd wd
.Answer: wd wd A
5) Econometrics can be defined as follows with the exception of: wd wd wd wd wd wd wd wd wd
A) the science of testing economic theory.
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B) fitting mathematical economic models to real-world data.
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C) a set of tools used for forecasting future values of economic variables.
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D) measuring the height of economists wd wd wd wd
.Answer: wd wd D
6) To provide quantitative answers to policy questions:
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A) it is typically sufficient to use common sense.
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B) you should interview the policy makers involved.
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C) you should examine empirical evidence.
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D) is typically impossible since policy questions are not quantifiable
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.Answer: wdwd C
7) An example of a randomized controlled experiment is when:
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A) households receive a tax rebate in one year but not the other.
wd wd wd wd wd wd wd wd wd wd wd
B) one U.S. state increases minimum wages and an adjacent state does not
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, an demployment differences are observed.
wd wd w d wd wd
C) random variables are controlled for by holding constant other factors.
wd wd wd wd wd wd wd wd wd
D) some 5th graders in a specific elementary school are allowed to use computers at
wd wd wd wd wd wd wd wd wd wd wd wd wd w
scho olwhile others are not, and their end-of-
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year performance is compared holding constant otherfactors. Ans
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wer: w d D
8) Ideal randomized controlled experiments in economics are:
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A) often performed in practice. wd wd wd
B) often used by the Federal Reserve to study the effects of monetary policy.
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C) useful because they give a definition of a causal effect.
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D) sometimes used by universities to determine who graduates in four years rather
wd wd wd wd wd wd wd wd wd wd wd
wd tha nfive. Answer:
wd w d w d C
Test Ban wd Page 3
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k
, Introduction to Econometrics 4th Edition by James Stock and Mark Watson. ISBN-
wd wd wd wd wd wd wd wd wd wd wd
. Chapters 1-19
wd wd
9) Most economic data are obtained:
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A) through randomized controlled experiments.
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B) by calibration methods.
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C) through textbook examples typically involving ten observation points.
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D) by observing real-
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world behavior.Answer:
wd wd wd D
10) One of the primary advantages of using econometrics over typical results from eco
wd wd wd wd wd wd wd wd wd wd wd wd
nomi ctheory, is that:
wd wd wd
A) it potentially provides you with quantitative answers for a policy problem rather than s
wd wd wd wd wd wd wd wd wd wd wd wd wd
impl ysuggesting the direction (positive/negative) of the response.
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B) teaching you how to use statistical packages
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C) learning how to invert a 4 by 4 matrix.
wd wd wd wd wd wd wd wd
D) all of the above
wd wd wd
. Answer:
wd w d A
11) In a randomized controlled experiment:
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A) there is a control group and a treatment group.
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B) you control for the effect that random numbers are not truly randomly generated
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C) you control for random answers
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D) the control group receives treatment on even days only
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.Answer: wd wd A
12) The reason why economists do not use experimental data more frequently is for al
wd wd wd wd wd wd wd wd wd wd wd wd wd
l of t hefollowing reasons EXCEPT that real-world experiments:
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A) cannot be executed in economics.
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B) with humans are difficult to administer.
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C) are often unethical.
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D) have flaws relative to ideal randomized controlled experiments
wd wd wd wd wd wd wd
.Answer: wd wd A
13) The most frequently used experimental or observational data in econometrics are
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of th efollowing type:
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A) cross-sectional data. wd
Test Ban
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