Test bank Introduction to Econometrics (Global Edition) 4th
Edition By James Stock, Mark Watson All Chapters Covered
100% Complete A+ Study Guide Latest Version
FULL TEST BANK!!!
Test Bank
Z Page 1
, Introduction to Econometrics, 4e
(Stock/Watson) Chapter 1 Economic
Questions and Data
1.1 Multiple Choice Questions
1) Analyzing the behavior of unemployment rates across U.S. states in March of 2006
Z
is an example of using:
A) time series data.
B) panel data.
C) cross-sectional data.
D) experimental
data. Answer: 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.
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B) time series data.
Z
C) panel data.
D) cross-
sectional data.Answer:
B
3) Analyzing the effect of minimum wage changes on teenage employment across the
48c ontiguous U.S. states from 1980 to 2004 is an example of using:
A) time series data.
B) panel data.
C) having a treatment group vs. a control group, since only teenagers receive minimum wages.
D) cross-
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Z Page 2
, sectional data.Answer:
B
4) Panel data:
A) is also called longitudinal data.
B) is the same as time series data.
C) studies a group of people at a point in time.
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D) typically uses control and
treatment groups. Answer: A
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Z Page 3
, 5) Econometrics can be defined as follows with the exception of:
Z Z Z
A) the science of testing economic theory.
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. Answer: D
6) To provide quantitative Answers to policy questions:
A) it is typically sufficient to use common sense.
B) you should interview the policy makers involved.
C) you should examine empirical evidence.
D) is typically impossible since policy questions are not
quantifiable. Answer: C
7) An example of a randomized controlled experiment is when:
A) households receive a tax rebate in one year but not the other.
B) one U.S. state increases minimum wages and an adjacent state does not,
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ande mployment differences are observed.
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C) random variables are controlled for by holding constant other factors.
D) some 5th graders in a specific elementary school are allowed to use computers at
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schoolw hile others are not, and their end-of-
Z
year performance is compared holding constant otherfactors.
Answer: D
8) Ideal randomized controlled experiments in economics are:
A) often performed in practice.
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B) often used by the Federal Reserve to study the effects of monetary policy.
C) useful because they give a definition of a causal effect.
Test Bank
Z Page 4
Edition By James Stock, Mark Watson All Chapters Covered
100% Complete A+ Study Guide Latest Version
FULL TEST BANK!!!
Test Bank
Z Page 1
, Introduction to Econometrics, 4e
(Stock/Watson) Chapter 1 Economic
Questions and Data
1.1 Multiple Choice Questions
1) Analyzing the behavior of unemployment rates across U.S. states in March of 2006
Z
is an example of using:
A) time series data.
B) panel data.
C) cross-sectional data.
D) experimental
data. Answer: C
2) Studying inflation in the United States from 1970 to 2006 is an example of using:
Z
A) randomized controlled experiments.
Z
B) time series data.
Z
C) panel data.
D) cross-
sectional data.Answer:
B
3) Analyzing the effect of minimum wage changes on teenage employment across the
48c ontiguous U.S. states from 1980 to 2004 is an example of using:
A) time series data.
B) panel data.
C) having a treatment group vs. a control group, since only teenagers receive minimum wages.
D) cross-
Test Bank
Z Page 2
, sectional data.Answer:
B
4) Panel data:
A) is also called longitudinal data.
B) is the same as time series data.
C) studies a group of people at a point in time.
Z
D) typically uses control and
treatment groups. Answer: A
Z
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Z Page 3
, 5) Econometrics can be defined as follows with the exception of:
Z Z Z
A) the science of testing economic theory.
B) fitting mathematical economic models to real-world data.
Z
C) a set of tools used for forecasting future values of economic variables.
Z
D) measuring the height of
economists. Answer: D
6) To provide quantitative Answers to policy questions:
A) it is typically sufficient to use common sense.
B) you should interview the policy makers involved.
C) you should examine empirical evidence.
D) is typically impossible since policy questions are not
quantifiable. Answer: C
7) An example of a randomized controlled experiment is when:
A) households receive a tax rebate in one year but not the other.
B) one U.S. state increases minimum wages and an adjacent state does not,
Z
ande mployment differences are observed.
Z
C) random variables are controlled for by holding constant other factors.
D) some 5th graders in a specific elementary school are allowed to use computers at
Z
schoolw hile others are not, and their end-of-
Z
year performance is compared holding constant otherfactors.
Answer: D
8) Ideal randomized controlled experiments in economics are:
A) often performed in practice.
Z
B) often used by the Federal Reserve to study the effects of monetary policy.
C) useful because they give a definition of a causal effect.
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Z Page 4
