Test Bank For Introductory Econometrics: A Modern Approach, 7th Edition By Jeffrey M. Wooldridge | VERIFIED.

Test Bank For Introductory Econometrics: A Modern Approach, 7th Edition By Jeffrey M. Wooldridge | VERIFIED. Econometricsisitheibranchiofieconomicsithat . a. studiesitheibehavioriofindividualieconomiciagentsiinimakingieconomicidecisions b. developsiandiusesistatisticalimethodsiforiestimatingieconomicirelationships c. dealsiwithitheiperformance,istructure,ibehavior,iandidecision-makingiofianieconomyiasiaiwhole d. appliesimathematicalimethodsitoirepresentieconomicitheoriesiandisolveieconomiciproblems. Answer:ib iDifficulty:iEasy Bloom’s:iKnowledge A-Head:iWhatis iEconometrics?BUSPROG: i Feedback:iEconometricsisitheibranchiofieconomicsithatidevelopsiandiusesistatisticalimethods iforestimating i ieconomicirelationships. 2. Nonexperimentalidataisicalled . a. cross-sectionalidata b. timeiseriesidata c. observationalidata d. panelidata Answer:ib iDifficulty:iEasy Bloom’s:iKnowledge A-Head:iWhatis iEconometrics?BUSPROG: i Feedback: 3. Whichiofitheifollowingisitrueiofiexperimentalidata? a. Experimentalidataiareicollectedinilaboratoryienvironmentsinitheinaturalisciences. b. Experimentalidataicannotibeicollectediniaicontrolledienvironment. c. Experimentalidataisisometimesicallediobservationalidata. d. Experimentalidataisisometimesicallediretrospectiveidata. Answer:ia iDifficulty:iEasy Bloom’s:iKnowledge A-Head:iWhatisiEconometrics? BUSPROG: Feedback: 4. Aniempiricalianalysisireliesion toitestiaitheory. a. commonisense b. ethicaliconsiderations c. data d. customsiandiconventions Answer:ic iDifficulty:iEasy Bloom’s:iKnowledge A-Head:iStepsiniEmpiricaliEconomic iAnalysisBUSPROG: i Feedback:iAniempiricalianalysisireliesionidataitoitestiaitheory. 5. Theitermi‘u’iinianieconometricimodelisiusuallyireferreditoiasithe . a. erroriterm b. parameter c. hypothesis d. dependentivariable Answer:ia iDifficulty:iEasy Bloom’s:iKnowledge A-Head:iStepsiniEmpiricaliEconomic iAnalysisBUSPROG: i Feedback:iTheitermiuiinianieconometricimodeliisicalleditheierroritermioridisturbanceiterm. 6. Theiparametersiofianieconometricimodel . a. includeialliunobservedifactorsiaffectingitheivariableibeingistudied b. describeitheistrengthiofitheirelationshipibetweenitheivariableiunderistudyianditheifactorsiaffectingiit c. referitoitheiexplanatoryivariablesincludedinitheimodel d. referitoitheipredictionsithaticanibeimadeiusingitheimodel Answer:ib iDifficulty:iEasy Bloom’s:iKnowledge A-Head:iStepsiniEmpiricaliEconomic iAnalysisBUSPROG: i Feedback:iTheiparametersiofianieconometricimodelidescribeitheidirectioniandistrengthiof itherelationship i ibetweenitheivariableiunderistudyianditheifactorsiaffectingiit. 7. Whichiofitheifollowingiisitheifirstistepiiniempiricalieconomicianalysis? a. Collectioniofidata b. Statementiofihypotheses c. Specificationiofianieconometricimodel d. Testingiofihypotheses Answer:ic iDifficulty:iEasy Bloom’s:iKnowledge A-Head:iStepsiniEmpiricaliEconomic iAnalysisBUSPROG: i Feedback:iTheifirstistepiiniempiricalieconomicianalysisisitheispecificationiofitheieconometricimodel. 8. Aidataisetithaticonsistsiofiaisampleiofiindividuals,ihouseholds,ifirms,icities,istates,icountries,ior iavariety i iofiotheriunits,itakeniatiaigivenipointiinitime,iisicalledia(n) . a. cross-sectionalidataiset b. longitudinalidataiset c. timeiseriesidataiset d. experimentalidataiset Answer:ia iDifficulty:iEasy Bloom’s:iKnowledge A-Head:iTheiStructureiofiEconomic iDataBUSPROG: i Feedback:iAidataisetithaticonsistsiofiaisampleiofindividuals,ihouseholds,ifirms,icities,istates,icountries,ori iaivarietyiofiotheriunits,itakeniatiaigivenipointiinitime,iisicallediaicross-sectionalidataiset. 9. Dataionitheiincomeiofilawigraduatesicollectediatidifferentitimesiduringitheisameiyearis . a. panelidata b. experimentalidata c. timeiseriesidata d. cross-sectionalidata Answer:id iDifficulty:iEasy Bloom’s:iApplication A-Head:iTheiStructureiofiEconomic iDataBUSPROG: i iAnalytic Feedback:iAidataisetithaticonsistsiofiaisampleiofindividuals,ihouseholds,ifirms,icities,istates,icountries,ori iaivarietyiofiotheriunits,itakeniatiaigivenipointiinitime,iisicallediaicross-sectionalidataiset. iTherefore,data i ionitheiincomeiofilawigraduatesioniaiparticulariyeariareiexamplesioficross-sectionalidata. 10. Aidataisetithaticonsistsiofiobservationsioniaivariableioriseveralivariablesioveritimeiisicallediai i dataiset. a. binary b. cross-sectional c. timeiseries d. experimental Answer:ic iDifficulty:iEasy Bloom’s:iKnowledge A-Head:iTheiStructureiofiEconomic iDataBUSPROG: i Feedback:iAitime-seriesidataiseticonsistsiofiobservationsioniaivariableioriseveralivariablesioveritime. 11. Whichiofitheifollowingiisianiexampleiofitimeiseriesidata? a. Dataionitheiunemploymentiratesinidifferentipartsiofiaicountryiduringiaiyear. b. Dataionitheiconsumptioniofiwheatibyi200ihouseholdsiduringiaiyear. c. Dataionitheigrossidomesticiproductiofiaicountryioveriaiperiodiofi10iyears. d. Dataionitheinumberiofivacanciesinivariousidepartmentsiofianiorganizationioniaiparticularimonth. Answer:ic iDifficulty:iEasy Bloom’s:iApplication A-Head:iTheiStructureiofiEconomic iDataBUSPROG: i iAnalytic Feedback:iAitime-seriesidataiseticonsistsiofiobservationsioniaivariableioriseveralivariablesiover time.iTherefore,idataionitheigrossidomesticiproductiofiaicountryioveriaiperiodiofi10iyearsisianiexampleofi itimeiseriesidata. 12. Whichiofitheifollowingirefersitoipanelidata? a. Dataionitheiunemploymentirateiiniaicountryioveriai5-yeariperiod b. Dataionitheibirthirate,ideathirateiandipopulationigrowthirateinidevelopingicountriesioveriai10- yearperiod. i c. Dataionitheincomeiofi5imembersiofiaifamilyioniaiparticulariyear. d. Dataionitheipriceiofiaicompany’sishareiduringiaiyear. Answer:ib iDifficulty:iEasy Bloom’s:iApplication A-Head:iTheiStructureiofiEconomic iDataBUSPROG: i iAnalytic Feedback:iAipanelidataiseticonsistsiofiaitimeiseriesiforieachicross-sectionalimemberiinitheidataiset. iTherefore,idataionitheibirthirate,ideathirateiandinfantimortalityirateinidevelopingicountriesioveriai10-year i iperiodirefersitoipanelidata. 13. Whichiofitheifollowingiisiaidifferenceibetweenipaneliandipooledicross-sectionalidata? a. Aipanelidataiseticonsistsiofidataionidifferenticross-sectionaliunitsioveriaigiveniperiodiofitimeiwhile iapooled i idataiseticonsistsiofidataionitheisameicross-sectionaliunitsioveriaigiveniperiodiofitime. b. Aipanelidataiseticonsistsiofidataionitheisameicross-sectionaliunitsioveriaigiveniperiodiofitimeiwhile iapooled i idataiseticonsistsiofidataionidifferenticross-sectionaliunitsioveriaigiveniperiodiofitime c. Aipanelidataiconsistsiofidataioniaisingleivariableimeasurediatiaigivenipointiinitimeiwhileiaipooled idataset i iconsistsiofidataionitheisameicross-sectionaliunitsioveriaigiveniperiodiofitime. d. Aipanelidataiseticonsistsiofidataioniaisingleivariableimeasurediatiaigivenipointiinitimeiwhileia ipooleddata i iseticonsistsiofidataionimoreithanioneivariableiatiaigivenipointiinitime. Answer:ib iDifficulty:iEasy Bloom’s:iKnowledge A-Head:iTheiStructureiofiEconomic iDataBUSPROG: i Feedback:iAipanelidataiseticonsistsiofidataionitheisameicross-sectionaliunitsioveriaigiveniperiodiof itimewhile i iaipooledidataiseticonsistsiofidataionitheisameicross-sectionaliunitsioveriaigiveniperiodiofitime. 14. i hasiaicausalieffection . a. Income;iunemployment b. Height;ihealth c. Income;iconsumption d. Age;iwage Answer:ic Difficulty: iModerateBloom’s: i iApplication A-Head:iCausalityianditheiNotioniofiCeterisiParibusiniEconometric iAnalysisBUSPROG: i iAnalytic Feedback:iIncomeihasiaicausalieffectioniconsumptionibecauseianiincreaseiniincomeileadsitoianincrease i iiniconsumption. 15. Whichiofitheifollowingiisitrue? a. Aivariableihasiaicausalieffectionianotherivariableiifibothivariablesincreaseior idecreasesimultaneously. i b. Theinotioniofi‘ceterisiparibus’iplaysianimportantiroleinicausalianalysis. c. Difficulty ininferringicausalityidisappearsiwhenistudyingidataiatifairlyihighilevelsiofiaggregation. d. Theiproblemiofinferringicausalityiarisesifiexperimentalidataiisiusediforianalysis. Answer: i b iDifficulty:iModerate Bloom’s:iKnowledge A-Head:iCausalityianditheiNotioniofiCeterisiParibusiniEconometric iAnalysisBUSPROG: i Feedback:iTheinotioniofi‘ceterisiparibus’iplaysianimportantiroleinicausalianalysis. 16. Experimentalidataiareisometimesicallediretrospectiveidata. Answer:iFalse iDifficulty:iEasy iBloom’s:iKnowledge A-Head:iWhatis iEconometrics?BUSPROG: i Feedback:iNonexperimentalidataiareisometimesicallediretrospectiveidata. 17. Anieconomicimodeliconsistsiofimathematicaliequationsithatidescribeivariousirelationships ibetweeneconomic i ivariables. Answer:iTrue iDifficulty:iEasy iBloom’s:iKnowledge A-Head:iStepsiniEmpiricaliEconomic iAnalysisBUSPROG: i Feedback:iAnieconomicimodeliconsistsiofimathematicaliequationsithatidescribeivarious irelationshipsbetween i ieconomicivariables. 18. Aicross-sectionalidataiseticonsistsiofiobservationsioniaivariableioriseveralivariablesioveritime. Answer:iFalse iDifficulty:iEasy iBloom’s:iKnowledge A-Head:iTheiStructureiofiEconomic iDataBUSPROG: i Feedback:iAitimeiseriesidataiseticonsistsiofiobservationsioniaivariableioriseveralivariablesiovertime. i 19. Aitimeiseriesidataiisialsoicallediailongitudinalidataiset. Answer:iFalse iDifficulty:iEasy iBloom’s:iKnowledge A-Head:iTheiStructureiofiEconomic iDataBUSPROG: i Feedback:iAitimeiseriesidataiisialsoicallediailongitudinalidataiset. 20. Theinotionioficeterisiparibusimeansi“otherifactorsibeing iequal.”Answer: i iTrue Difficulty:iEasy iBloom’s:iKnowledge A-Head:iCausalityianditheiNotioniofiCeterisiParibusiniEconometric iAnalysisBUSPROG: i Feedback:iTheinotionioficeterisiparibusimeansi“otherifactorsibeingiequal.” Chapteri2 1. Aidependentivariableiisialsoiknowniasia(n) . a. explanatoryivariable b. controlivariable c. predictorivariable d. responseivariable Answer:id iDifficulty:iEasy Bloom’s:iKnowledge A-Head:iDefinitioniofitheiSimpleiRegression iModelBUSPROG: i Feedback:iAidependentivariableiisiknowniasiairesponseivariable. 2. Ifiaichangeiinivariableixicausesiaichangeiinivariableiy,ivariableixiisicalledithe . a. dependentivariable b. explainedivariable c. explanatoryivariable d. response ivariableAnswer: i ic Difficulty:iEasy Bloom’s:iComprehension A-Head:iDefinitioniofitheiSimpleiRegression iModelBUSPROG: i Feedback:iIfiaichangeiinivariableixicausesiaichangeinivariableiy,ivariableixiisicalleditheiindependentvariable i ioritheiexplanatoryivariable. 3. Initheiequationiyi= β0 + β1 i i i i ixi+iu, β0 isithe . a. dependentivariable b. independentivariable c. slopeiparameter d. interceptiparameter Answer:id iDifficulty:iEasy Bloom’s:iKnowledge A-Head:iDefinitioniofitheiSimpleiRegression iModelBUSPROG: i Feedback:iInitheiequationiyi= β0 + β1 i i i i ixi+iu, β0 isitheinterceptiparameter. 4. Initheiequationiyi= β0 + β1 i i i i ixi+iu,iwhatiisitheiestimatedivalueiofi i i β0 i i i i ?