TEST BANK - INTRODUCTORY ECONOMETRICS: A MODERN APPROACH, 5TH EDITION BY JEFFREY M. WOOLDRIDGE

TEST BANK - INTRODUCTORY ECONOMETRICS: A MODERN APPROACH, 5TH EDITION BY JEFFREY M. WOOLDRIDGE-1. Econometrics is the branch of economics that . a. studies the behavior of individual economic agents in making economic decisions b. develops and uses statistical methods for estimating economic relationships c. deals with the performance, structure, behavior, and decision-making of an economy as a whole d. applies mathematical methods to represent economic theories and solve economic 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 collected in laboratory environments in the natural sciences. b. Experimental data cannot be collected in a controlled environment. c. Experimental data is sometimes called observational data. d. Experimental data is sometimes called retrospective data. Answer: a Difficulty: Easy 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 referred 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 affecting the variable being studied b. describe the strength of the relationship between 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