TEST BANK FOR Introductory Econometrics: A Modern Approach 7th Edition by Jeffrey M. Wooldridge

,Test Bank –IntroductoryEconometrics: A ModernApproach, 5thEdition by Jeffrey M. Wooldridge
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With PERFECT SOLUTION AVAILABLE OF ALL CHAPTERS
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Chapter 1 n




1. Econometrics is the branch of economics that . n n n n n n n




a. studies the behavior of individual economic agents inmaking economic decisions
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b. develops and uses statistical methods for estimating economic relationships
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c. deals with the performance, structure, behavior, and decision-making of an economy as a whole
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d. applies mathematical methods to represent economic theories andsolve economic problems.
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Econometrics is based on the development of statistical n n n n n n n




methods for estimating economic relationships, testing
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economic theories, evaluating government and business
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policies.
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2. Nonexperimental data is called . n n n n




a. cross-sectional data n




b. time series data
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c. observational data n




d. panel data n




3. Which of the following is true ofexperimental data?
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a. Experimental data are collected inlaboratory environments in the natural sciences. n n n n n n n n n n




b. Experimental data cannot be collected in a controlled environment. n n n n n n n n




c. Experimental data is sometimes called observational data. n n n n n n




d. Experimental data is sometimes called retrospective data. n n n n n n




4. An empirical analysis relies on
n n n n n to test a theory.
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a. common sense n




b. ethicalconsiderations n




c. data
d. customs and conventions n n




5. The term ‘u’ in an econometric model is usually referred to as the
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a. error term n




b. parameter
c. hypothesis
d. dependent variable n




6. Theparameters of aneconometric model
n . n n n n n




a. include all unobserved factors affecting the variable being studied
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,b. describe the strength of the relationship between thevariable under study and the factors affecting it
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c. refer to the explanatory variables included in the model
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d. refer to the predictions that can be made using the model
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7. Whichof the followingis the first step in empirical economic analysis?
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a. Collectionof data n n




b. Statementof hypotheses n n




c. Specification of an econometric model n n n n




d. Testingof hypotheses n n




8. A data set that consistsof a sampleof individuals, households, firms, cities, states,countries, or a
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variety of other units, taken at a given point in time, is called a(n)
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a. cross-sectional data set n n




b. longitudinal data set n n




c. timeseries data set
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d. experimental data set n n




9. Data onthe income of lawgraduates collected at different times during the same year is
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a. panel data n




b. experimental data n




c. time series data
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d. cross-sectional data n




10. A data set that consists of observations on avariable or several variables over time is called a data
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set.
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a. binary
b. cross-sectional
c. time series
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d. experimental

11. Which of the following is anexampleof time series data?
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a. Data onthe unemployment rates in different parts of a country during a year.
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b. Data onthe consumption of wheat by 200 households during a year.
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c. Data on the gross domestic product of acountry over a period of 10 years.
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d. Dataon the number of vacancies in various departments of an organization on a particular month.
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12. Which of the following refers to panel data?
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a. Dataon the unemployment rate in a country over a 5-year period
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b. Data on the birth rate, death rate and population growth rate in developing countries over a10- year
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period.
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c. Data onthe income of 5 members of a family on a particular year.
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d. Dataon the priceof a company’s share during a year.
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, 13. Whichof the following is a difference between panel and pooled cross-sectional data?
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a. A panel data set consists ofdata on different cross-sectional units over a given periodof time while a
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pooled data set consists of data on the same cross-sectional units over a given period of time.
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b. A panel data set consists of data on the same cross-sectional units over a givenperiod of time while a
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pooled data set consists of data on different cross-sectional units over a given period of time
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c. A panel data consistsof data on a single variablemeasured at a given point in time while a pooled data
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set consists of data on the same cross-sectional units over a given period of time.
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d. A panel data set consists of data on a single variablemeasured at a given point intime while a pooled data
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set consists of data on more than one variable at a given point in time.
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14. has a causal effect on n n n n n .
a. Income; unemployment n




b. Height; health n




c. Income; consumption n




d. Age; wage n




15. Which of the following is true? n n n n n




a. A variable has acausal effect on anothervariable if both variables increase or decrease
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simultaneously.
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b. Thenotion of ‘ceteris paribus’ plays an important role in causal analysis.
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c. Difficulty in inferring causality disappears when studying data at fairly high levelsof aggregation.
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d. The problem of inferring causality arises if experimental data is used for analysis.
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16. Experimental data are sometimes called retrospective data. F n n n n n n n




17. An economicmodelconsistsofmathematicalequations that describe various relationships between
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economic variables. T
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18. A cross-sectional data set consists of observations on a variable or several variables over time. F
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19. A time series data is also called a longitudinal data set. T
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20. The notion of ceteris paribus means “other factors being equal.” T
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Chapter 2 n




1. A dependent variable is alsoknown as a(n)
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a. explanatory variable n




b. controlvariable n




c. predictor variable n




d. response variable n