TestBank–Introductory Econometrics: AModern Approach,5th
n n n n n n n n
Edition by Jeffrey M. Wooldridge n n n n n
WithPERFECT SOLUTIONAVAILABLEOFALLCHAPTERS
n n n n n n
Chapter 1 n
1. Econometrics is the branch of economics that . n n n n n n
a. studies the behavior of individual economic agents in making economic decisions
n n n n n n n n n n
b. develops and uses statistical methods for estimating economic relationships
n n n n n n n n
c. deals with the performance, structure, behavior, and decision-making of an economy as a whole
n n n n n n n n n n n n n
d. applies mathematical methods to represent economic theories and solve economic problems.
n n n n n n n n n n
Answer: b n
Difficulty: Easy
n n
Bloom’s:Knowledge
n n
A-Head: WhatisEconometrics?
n n n
BUSPROG:
n
Feedback: Econometrics is the branchofeconomicsthatdevelopsanduses statisticalmethods for
n n n n n n n n n n n n n
estimating economic relationships.
n n n
2. Nonexperimental data is called n n n .
a. cross-sectional data n
b. timeseries data
n n
c. observational data n
d. panel data
n
Answer: b n
Difficulty: Easy
n n
Bloom’s:Knowledge
n n
A-Head: WhatisEconometrics?
n n n
BUSPROG:
n
Feedback:
3. Whichof the following is true of experimental data?
n n n n n n n n
a. Experimental data are collected in laboratory 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
Answer: a n
Difficulty:Easy
n n
Bloom’s: Knowledge
n
A-Head: What is Econometrics?
n n n
,BUSPROG:
Feedback:
4. Anempirical analysis relies on
n n n n to test atheory.n n n
a. common sense n
b. ethical considerations n
c. data
d. customs andconventions n n
Answer: c n
Difficulty:Easy
n n
Bloom’s: Knowledge n
A-Head: Steps inEmpirical EconomicAnalysis
n n n n n
BUSPROG:
n
Feedback:Anempirical analysis relies ondata to test atheory.
n n n n n n n n n n
5. The term ‘u’ in an econometric model is usually referred to as the
n n n n n n n n n n n n .
a. errorterm n
b. parameter
c. hypothesis
d. dependent variable n
Answer: a n
Difficulty:Easy
n n
Bloom’s: Knowledge n
A-Head: Steps inEmpirical EconomicAnalysis
n n n n n
BUSPROG:
n
Feedback: Theterm uin aneconometricmodel is called the error termor disturbance term.
n n n n n n n n n n n n n n n
6. The parameters of aneconometric model
n . n n n n
a. include all unobserved factors affecting the variable being studied
n n n n n n n n
b. describe the strengthof the relationship between thevariable under study andthe factors affecting it
n n n n n n n n n n n n n n n
c. refer to the explanatory variables included in the model
n n n n n n n n
d. refer to the predictions that can be made using the model
n n n n n n n n n n
Answer: b n
Difficulty: Easy
n n
Bloom’s:Knowledge
n n
A-Head: Steps inEmpirical EconomicAnalysis
n n n n n
BUSPROG:
n
Feedback: The parametersof aneconometricmodel describe thedirectionand strength of the
n n n n n n n n n n n n n
relationship between the variable under study and the factors affecting it.
n n n n n n n n n n n
,7. Whichof the followingis the first step in empirical economic analysis?
n n n n n n n n n n n
a. Collectionof data n n
b. Statementof hypotheses n n
c. Specification of aneconometric model n n n n
d. Testingof hypotheses n n
Answer: c n
Difficulty:Easy
n n
Bloom’s: Knowledge n
A-Head: Steps inEmpirical EconomicAnalysis
n n n n n
BUSPROG:
n
Feedback: The first step in empirical economic analysis is the specification of the econometric model.
n n n n n n n n n n n n n n
8. A data set thatconsistsof asampleof individuals,households, firms,cities,states,countries, ora
n n n n n n n n n n n n n n n n
variety of other units, taken at a given point in time, is called a(n)
n n n . n n n n n n n n n n n
a. cross-sectional data set n n
b. longitudinal data set n n
c. time series data set
n n n
d. experimental data set n n
Answer: a n
Difficulty:Easy
n n
Bloom’s: Knowledge n
A-Head: The Structureof EconomicData
n n n n n
BUSPROG:
n
Feedback: Adataset thatconsistsof a sampleofindividuals, households, firms,cities, states, countries, or a
n n n n n n n n n n n n n n n n n
variety of other units, taken at a given point in time, is called a cross-sectional data set.
n n n n n n n n n n n n n n n n n
9. Data onthe income oflaw graduates collected at different times during the same year is
n n n n n n n n n n n n n n n .
a. panel data n
b. experimental data n
c. timeseries data
n n
d. cross-sectional data n
Answer: d n
Difficulty:Easy
n n
Bloom’s: Application n
A-Head: The Structureof EconomicData
n n n n n
BUSPROG: Analytic
n n
, Feedback: A data set that consists of a sample of individuals, households, firms, cities, states, countries, or a
n n n n n n n n n n n n n n n n n
variety of other units, taken at a given point in time, is called a cross-sectional data set. Therefore, data on
n n n n n n n n n n n n n n n n n n n n
the income of law graduates on a particular year are examples of cross-sectional data.
n n n n n n n n n n n n n n
10. A data set that consists of observations on a variable or several variables over time is called a
n n n n n n n n n n n n n n n n n n
data set.
n n
a. binary
b. cross-sectional
c. time series n
d. experimental
Answer: c n
Difficulty:Easy
n n
Bloom’s: Knowledge n
A-Head: The Structureof EconomicData
n n n n n
BUSPROG:
n
Feedback: A time-series data set consists of observations on a variable or several variables over time.
n n n n n n n n n n n n n n n
11. Whichof the followingis an example oftime series data?
n n n n n n n n n n
a. Data onthe unemployment rates in different parts of a country during a year.
n n n n n n n n n n n n n
b. Dataonthe consumption of wheat by 200 households during a year.
n n n n n n n n n n n
c. Dataonthegross domestic product of a country over aperiod of 10 years.
n n n n n n n n n n n n n n
d. Dataonthe number ofvacancies invarious departments ofanorganization on a particular month.
n n n n n n n n n n n n n n n
Answer: c n
Difficulty:Easy
n n
Bloom’s: Application n
A-Head: The Structureof EconomicData
n n n n n
BUSPROG: Analytic
n n
Feedback: A time-series data set consists of observations on a variable or several variables over
n n n n n n n n n n n n n n
time. Therefore, data on the gross domestic product of a country over a period of 10 years is an example of
n n n n n n n n n n n n n n n n n n n n
time series data.
n n n
12. Whichof the followingrefers to panel data? n n n n n n n
a. Dataonthe unemploymentrate in a country over a5-year period
n n n n n n n n n n n
b. Dataonthe birthrate, death rateand populationgrowth ratein developing countries over a10-year
n n n n n n n n n n n n n n n n
period.
n
c. Dataonthe income of 5 members of a family ona particular year.
n n n n n n n n n n n n n
d. Dataonthe priceof a company’s share during a year.
n n n n n n n n n n
Answer: b n
Difficulty:Easy
n n
n n n n n n n n
Edition by Jeffrey M. Wooldridge n n n n n
WithPERFECT SOLUTIONAVAILABLEOFALLCHAPTERS
n n n n n n
Chapter 1 n
1. Econometrics is the branch of economics that . n n n n n n
a. studies the behavior of individual economic agents in making economic decisions
n n n n n n n n n n
b. develops and uses statistical methods for estimating economic relationships
n n n n n n n n
c. deals with the performance, structure, behavior, and decision-making of an economy as a whole
n n n n n n n n n n n n n
d. applies mathematical methods to represent economic theories and solve economic problems.
n n n n n n n n n n
Answer: b n
Difficulty: Easy
n n
Bloom’s:Knowledge
n n
A-Head: WhatisEconometrics?
n n n
BUSPROG:
n
Feedback: Econometrics is the branchofeconomicsthatdevelopsanduses statisticalmethods for
n n n n n n n n n n n n n
estimating economic relationships.
n n n
2. Nonexperimental data is called n n n .
a. cross-sectional data n
b. timeseries data
n n
c. observational data n
d. panel data
n
Answer: b n
Difficulty: Easy
n n
Bloom’s:Knowledge
n n
A-Head: WhatisEconometrics?
n n n
BUSPROG:
n
Feedback:
3. Whichof the following is true of experimental data?
n n n n n n n n
a. Experimental data are collected in laboratory 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
Answer: a n
Difficulty:Easy
n n
Bloom’s: Knowledge
n
A-Head: What is Econometrics?
n n n
,BUSPROG:
Feedback:
4. Anempirical analysis relies on
n n n n to test atheory.n n n
a. common sense n
b. ethical considerations n
c. data
d. customs andconventions n n
Answer: c n
Difficulty:Easy
n n
Bloom’s: Knowledge n
A-Head: Steps inEmpirical EconomicAnalysis
n n n n n
BUSPROG:
n
Feedback:Anempirical analysis relies ondata to test atheory.
n n n n n n n n n n
5. The term ‘u’ in an econometric model is usually referred to as the
n n n n n n n n n n n n .
a. errorterm n
b. parameter
c. hypothesis
d. dependent variable n
Answer: a n
Difficulty:Easy
n n
Bloom’s: Knowledge n
A-Head: Steps inEmpirical EconomicAnalysis
n n n n n
BUSPROG:
n
Feedback: Theterm uin aneconometricmodel is called the error termor disturbance term.
n n n n n n n n n n n n n n n
6. The parameters of aneconometric model
n . n n n n
a. include all unobserved factors affecting the variable being studied
n n n n n n n n
b. describe the strengthof the relationship between thevariable under study andthe factors affecting it
n n n n n n n n n n n n n n n
c. refer to the explanatory variables included in the model
n n n n n n n n
d. refer to the predictions that can be made using the model
n n n n n n n n n n
Answer: b n
Difficulty: Easy
n n
Bloom’s:Knowledge
n n
A-Head: Steps inEmpirical EconomicAnalysis
n n n n n
BUSPROG:
n
Feedback: The parametersof aneconometricmodel describe thedirectionand strength of the
n n n n n n n n n n n n n
relationship between the variable under study and the factors affecting it.
n n n n n n n n n n n
,7. Whichof the followingis the first step in empirical economic analysis?
n n n n n n n n n n n
a. Collectionof data n n
b. Statementof hypotheses n n
c. Specification of aneconometric model n n n n
d. Testingof hypotheses n n
Answer: c n
Difficulty:Easy
n n
Bloom’s: Knowledge n
A-Head: Steps inEmpirical EconomicAnalysis
n n n n n
BUSPROG:
n
Feedback: The first step in empirical economic analysis is the specification of the econometric model.
n n n n n n n n n n n n n n
8. A data set thatconsistsof asampleof individuals,households, firms,cities,states,countries, ora
n n n n n n n n n n n n n n n n
variety of other units, taken at a given point in time, is called a(n)
n n n . n n n n n n n n n n n
a. cross-sectional data set n n
b. longitudinal data set n n
c. time series data set
n n n
d. experimental data set n n
Answer: a n
Difficulty:Easy
n n
Bloom’s: Knowledge n
A-Head: The Structureof EconomicData
n n n n n
BUSPROG:
n
Feedback: Adataset thatconsistsof a sampleofindividuals, households, firms,cities, states, countries, or a
n n n n n n n n n n n n n n n n n
variety of other units, taken at a given point in time, is called a cross-sectional data set.
n n n n n n n n n n n n n n n n n
9. Data onthe income oflaw graduates collected at different times during the same year is
n n n n n n n n n n n n n n n .
a. panel data n
b. experimental data n
c. timeseries data
n n
d. cross-sectional data n
Answer: d n
Difficulty:Easy
n n
Bloom’s: Application n
A-Head: The Structureof EconomicData
n n n n n
BUSPROG: Analytic
n n
, Feedback: A data set that consists of a sample of individuals, households, firms, cities, states, countries, or a
n n n n n n n n n n n n n n n n n
variety of other units, taken at a given point in time, is called a cross-sectional data set. Therefore, data on
n n n n n n n n n n n n n n n n n n n n
the income of law graduates on a particular year are examples of cross-sectional data.
n n n n n n n n n n n n n n
10. A data set that consists of observations on a variable or several variables over time is called a
n n n n n n n n n n n n n n n n n n
data set.
n n
a. binary
b. cross-sectional
c. time series n
d. experimental
Answer: c n
Difficulty:Easy
n n
Bloom’s: Knowledge n
A-Head: The Structureof EconomicData
n n n n n
BUSPROG:
n
Feedback: A time-series data set consists of observations on a variable or several variables over time.
n n n n n n n n n n n n n n n
11. Whichof the followingis an example oftime series data?
n n n n n n n n n n
a. Data onthe unemployment rates in different parts of a country during a year.
n n n n n n n n n n n n n
b. Dataonthe consumption of wheat by 200 households during a year.
n n n n n n n n n n n
c. Dataonthegross domestic product of a country over aperiod of 10 years.
n n n n n n n n n n n n n n
d. Dataonthe number ofvacancies invarious departments ofanorganization on a particular month.
n n n n n n n n n n n n n n n
Answer: c n
Difficulty:Easy
n n
Bloom’s: Application n
A-Head: The Structureof EconomicData
n n n n n
BUSPROG: Analytic
n n
Feedback: A time-series data set consists of observations on a variable or several variables over
n n n n n n n n n n n n n n
time. Therefore, data on the gross domestic product of a country over a period of 10 years is an example of
n n n n n n n n n n n n n n n n n n n n
time series data.
n n n
12. Whichof the followingrefers to panel data? n n n n n n n
a. Dataonthe unemploymentrate in a country over a5-year period
n n n n n n n n n n n
b. Dataonthe birthrate, death rateand populationgrowth ratein developing countries over a10-year
n n n n n n n n n n n n n n n n
period.
n
c. Dataonthe income of 5 members of a family ona particular year.
n n n n n n n n n n n n n
d. Dataonthe priceof a company’s share during a year.
n n n n n n n n n n
Answer: b n
Difficulty:Easy
n n
