TEST BANK for Introduction to Econometrics 4th Edition by James Stock and Mark Watson - All Chapters 1-19

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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xq w Chapter 1 qw q w Economic Questions and Data qw qw qw




1.1 Multiple Choice Questions qw qw




1) Analyzing the behavior of unemployment rates across U.S. states in March of 2006
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qw is a nexample of using:
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A) time series data.
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B) panel data. qw




C) cross-sectional data. qw




D) experimental data qw




.Answer: qwqw 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 qw




B) time series data.
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C) panel data. qw




D) cross-
sectional data.Answer:qw




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. qw




C) having a treatment group vs. a control group, since only teenagers receive minimum wages.
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D) cross-
sectional data.Answer qw


:
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 groupsqw qw qw qw qw




.Answer: q wq w A


5) Econometrics can be defined as follows with the exception of: qw qw qw qw qw qw qw qw qw




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 qw qw qw qw




.Answer: q wqw 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: qwqw 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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wscho 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: q w D


8) Ideal randomized controlled experiments in economics are:
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A) often performed in practice. qw qw qw




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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qw tha nfive. Answer:
qw q w q w C
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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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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:
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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: q wqw 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: q wqw 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. qw




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