Introduction to Econometrics, Stock - Complete test bank - exam questions - quizzes (updated 2022)

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, Introduction to Econometrics, 4e (Stock/Watson) - - - - -




Chapter 1 Economic Questions and Data
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1.1 Multiple Choice Questions - -




1) Analyzing the behavior of unemployment rates across U.S. states in March of 2006 is an
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example of using: - -




A) time series data.
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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. - -




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




D) cross-sectional data. - -




Answer: B -




3) Analyzing the effect of minimum wage changes on teenage employment across the 48
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contiguous 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. -




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




Answer: B -




4) Panel data: -




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 groups. - - - - - -




Answer: A -




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




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, 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. - - - - -




Answer: 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: 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. - - - - - - - - - - -




B) one U.S. state increases minimum wages and an adjacent state does not, and
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employment differences are observed. - - -




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 school
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while others are not, and their end-of-year performance is compared holding constant other
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factors.
Answer: D -




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




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 than
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five. Answer: C
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9) Most economic data are obtained: - - - -




A) through randomized controlled experiments. - - -




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-world behavior.
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Answer: D -




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