Test Bank –Introductory Econometrics: A Modern Approach, 5th
!| !| !| !| !| !| !| !|
Edition by Jeffrey M. Wooldridge
!| !| !| !| !|
With PERFECT SOLUTION AVAILABLE OF ALL CHAPTERS
!| !| !| !| !| !|
Chapter !|1
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
A-Head: !|Steps !|in !|Empirical !|Economic !|Analysis
!|BUSPROG:
Feedback: !|The !|parameters !|of !|an !|econometric !|model !|describe !|the !|direction !|and !|strength !|of !|the
, !| relationship !|between !|the !|variable !|under !|study !|and !|the !|factors !|affecting !|it.
!| !| !| !| !| !| !| !|
Edition by Jeffrey M. Wooldridge
!| !| !| !| !|
With PERFECT SOLUTION AVAILABLE OF ALL CHAPTERS
!| !| !| !| !| !|
Chapter !|1
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
A-Head: !|Steps !|in !|Empirical !|Economic !|Analysis
!|BUSPROG:
Feedback: !|The !|parameters !|of !|an !|econometric !|model !|describe !|the !|direction !|and !|strength !|of !|the
, !| relationship !|between !|the !|variable !|under !|study !|and !|the !|factors !|affecting !|it.
