TESTBANK for Introduction to Econometrics Top Predicted Questions and Answers

A data set containing the number of adults with college degrees in each of the US states in 2009 is _____ data. Select one: a. cross-section b. flow c. panel d. time series - a. cross-section A data set that has observations on one entity at multiple points in time is classified as _____. Select one: a. time series data b. panel data c. cross-section data d. flow data - a. time series data Consider the model Qd = f(P,Ps,Pc,INC) where Qd is quantity demanded of a particular product per month, P is the price of the product, Ps is the price of substitutes, Pc is the price of complements, and INC is monthly income. This equation represents _____. Select one: a. an interval forecast b. an econometric model c. a non-linear model d. an economic model - an economic model Economic theory provides a basis for which variables are relevant and should be included in an econometric model. But econometrics provides tools to estimate _____ which tells us _____. Select one: a. variables; the probability of a specific outcome b. causality; why it happens that way c. a parameter; how much or to what degree things change d. a model; the functional form that should be used - a parameter; how much or to what degree things change Of the following steps in conducting empirical economic research, which one should be performed last? Select one: a. Build an economic model guided by economic theory. b. Evaluate and analyze the consequences and implications of the results. c. Estimate parameters and test hypotheses. d. Find appropriate data that can be used for estimation. - Evaluate and analyze the consequences and implications of the results. Refer to the equation QS = β1 + β2P + β3Pr + β4PS + β5TAX + e, where QS is annual quantity supplied, P is the price of the product, Pr is the price of resources, PS is the price of goods that are substituted in production, and TAX is the excise tax on the product. This equation is _____. Select one: a. an economic model b. an econometric model c. a market model d. a non-linear model - an econometric model Refer to the equation QS = β1 + β2P + β3Pr + β4PS + β5TAX + e, where QS is annual quantity supplied, P is the price of the product, Pr is the price of resources, PS is the price of goods that are substitutes in production, and TAX is the excise tax on the product. In this equation, β1represents _____ Select one: a. a parameter to be estimated b. the random error term