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

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, IntroductiontoEconometrics,4e(Stock/Watson)
a2 Chapter 1 Economic Questionsand Data
a2 a2 - a2




1.1 a2 a 2 MultipleChoiceQuestions


1) Analyzingthebehaviorofunemploymentratesacross U.S.statesin Marchof2006is an 2a - a2




a2 exampleofusing:
A) timeseriesdata.
B) paneldata.
C) cross-sectionaldata.
D) experimentaldata.
Answer: C
a2 a2




2) Studying inflationinthe United Statesfrom 1970 to 2006 is an exampleofusing:
- a2 a2 a2 a2 a2 - a2 a2




A) randomized controlledexperiments.
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B) time seriesdata. -




C) paneldata.
D) cross-sectionaldata.
Answer: B
a2 a2




3) Analyzingtheeffectofminimumwagechangesonteenageemploymentacrossthe48 2a




a2 contiguous U.S. statesfrom 1980 to 2004 is an exampleofusing:
a2 a2 a2 a2 a2 a2 a2 a2




A) timeseriesdata.
B) paneldata.
C) havingatreatment groupvs.acontrolgroup, - a 2 a 2 sinceonlyteenagersreceive minimum wages.
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D) cross-sectionaldata.
Answer: B
a2 a2




4) Paneldata:
A) isalsocalledlongitudinaldata.
B) isthesameas timeseriesdata. a2




C) studiesagroupofpeople at apointin time. - - -




D) typicallyusescontrolandtreatmentgroups.
Answer: A
a2 a2




5) Econometricscanbedefined as followswiththeexception of: a2 a2 -




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, A) thescienceoftestingeconomictheory.
B) fittingmathematicaleconomic modelsto real-world data. - - -




C) asetoftoolsusedforforecastingfuturevaluesofeconomicvariables.
D) measuring theheightofeconomists. -




a2 Answer: D a2




6) Toprovidequantitative answerstopolicyquestions: a2




A) it is typicallysufficienttouse commonsense.
- a2 -




B) youshouldinterviewthepolicymakersinvolved.
C) youshouldexamineempiricalevidence.
D) istypicallyimpossiblesincepolicyquestionsarenotquantifiable.
a 2 Answer: C a2




7) Anexampleof arandomizedcontrolled experimentiswhen:
a 2 -




A) householdsreceiveataxrebatein oneyearbutnot theother. - -




B) oneU.S. stateincreasesminimumwagesand an adjacentstatedoes not, and
a2 a2 - a2 a2




a2 employment differencesareobserved. a2




C) randomvariablesarecontrolled forbyholding constantotherfactors. - -




D) some5th gradersin aspecificelementaryschoolareallowed tousecomputers at school
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a 2 whileothersarenot, andtheirend-of-yearperformanceiscomparedholding constantother
a2 -




a2 factors.
Answer: D a2




8) Idealrandomizedcontrolled experimentsineconomics are: - -




A) oftenperformedinpractice.
B) oftenusedbythe Federal Reservetostudytheeffectsofmonetarypolicy.
a2 a2




C) usefulbecausetheygivea definition ofacausaleffect. - -




D) sometimesusedbyuniversities todeterminewhograduates infouryears ratherthan - - - -




a 2 a 2 five. Answer: C
a2 a2




9) Mosteconomicdataareobtained:
A) throughrandomizedcontrolledexperiments.
B) bycalibrationmethods.
C) throughtextbook examplestypicallyinvolvingten observationpoints.
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D) byobservingreal-worldbehavior.
a2 Answer: D a2




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