,Test Bank –IntroductoryEconometrics: A ModernApproach, 5thEdition by Jeffrey M. Wooldridge
n n n n n n n n n n n n
With PERFECT SOLUTION AVAILABLE OF ALL CHAPTERS
n n n n n n
Chapter 1 n
1. Econometrics is the branch of economics that . n n n n n n n
a. studies the behavior of individual economic agents inmaking 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 andsolve economic problems.
n n n n n n n n n n
Econometrics is based on the development of statistical n n n n n n n
methods for estimating economic relationships, testing
n n n n n n
economic theories, evaluating government and business
n n n n n n
policies.
n
2. Nonexperimental data is called . n n n n
a. cross-sectional data n
b. time series data
n n
c. observational data n
d. panel data n
3. Which of the following is true ofexperimental data?
n n n n n n n n
a. Experimental data are collected inlaboratory 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
4. An empirical analysis relies on
n n n n n to test a theory.
n n n
a. common sense n
b. ethicalconsiderations n
c. data
d. customs and conventions 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 n .
a. error term n
b. parameter
c. hypothesis
d. dependent variable n
6. Theparameters of aneconometric model
n . 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 strength of the relationship between thevariable under study and the 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
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 an econometric model n n n n
d. Testingof hypotheses n n
8. A data set that consistsof a sampleof individuals, households, firms, cities, states,countries, or a
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 n
a. cross-sectional data set n n
b. longitudinal data set n n
c. timeseries data set
n n n
d. experimental data set n n
9. Data onthe income of lawgraduates 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. time series data
n n
d. cross-sectional data n
10. A data set that consists of observations on avariable or several variables over time is called a data
n n n n n n n n n n n n n n n n n n
set.
n
a. binary
b. cross-sectional
c. time series
n
d. experimental
11. Which of the following is anexampleof time 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. Data onthe consumption of wheat by 200 households during a year.
n n n n n n n n n n n
c. Data on the gross domestic product of acountry over a period of 10 years.
n n n n n n n n n n n n n n
d. Dataon the number of vacancies in various departments of an organization on a particular month.
n n n n n n n n n n n n n n n
12. Which of the following refers to panel data?
n n n n n n n
a. Dataon the unemployment rate in a country over a 5-year period
n n n n n n n n n n n
b. Data on the birth rate, death rate and population growth rate in developing countries over a10- year
n n n n n n n n n n n n n n n n n
period.
n
c. Data onthe income of 5 members of a family on a particular year.
n n n n n n n n n n n n n
d. Dataon the priceof a company’s share during a year.
n n n n n n n n n n
, 13. Whichof the following is a difference between panel and pooled cross-sectional data?
n n n n n n n n n n n n
a. A panel data set consists ofdata on different cross-sectional units over a given periodof time while a
n n n n n n n n n n n n n n n n n n
pooled data set consists of data on the same cross-sectional units over a given period of time.
n n n n n n n n n n n n n n n n n
b. A panel data set consists of data on the same cross-sectional units over a givenperiod of time while a
n n n n n n n n n n n n n n n n n n n
pooled data set consists of data on different cross-sectional units over a given period of time
n n n n n n n n n n n n n n n n
c. A panel data consistsof data on a single variablemeasured at a given point in time while a pooled data
n n n n n n n n n n n n n n n n n n n n
set consists of data on the same cross-sectional units over a given period of time.
n n n n n n n n n n n n n n n
d. A panel data set consists of data on a single variablemeasured at a given point intime while a pooled data
n n n n n n n n n n n n n n n n n n n n n
set consists of data on more than one variable at a given point in time.
n n n n n n n n n n n n n n n
14. has a causal effect on n n n n n .
a. Income; unemployment n
b. Height; health n
c. Income; consumption n
d. Age; wage n
15. Which of the following is true? n n n n n
a. A variable has acausal effect on anothervariable if both variables increase or decrease
n n n n n n n n n n n n n n
simultaneously.
n
b. Thenotion of ‘ceteris paribus’ plays an important role in causal analysis.
n n n n n n n n n n n
c. Difficulty in inferring causality disappears when studying data at fairly high levelsof aggregation.
n n n n n n n n n n n n n
d. The problem of inferring causality arises if experimental data is used for analysis.
n n n n n n n n n n n n
16. Experimental data are sometimes called retrospective data. F n n n n n n n
17. An economicmodelconsistsofmathematicalequations that describe various relationships between
n n n n n n n n n n n
economic variables. T
n n n
18. A cross-sectional data set consists of observations on a variable or several variables over time. F
n n n n n n n n n n n n n n n
19. A time series data is also called a longitudinal data set. T
n n n n n n n n n n n
20. The notion of ceteris paribus means “other factors being equal.” T
n n n n n n n n n n
Chapter 2 n
1. A dependent variable is alsoknown as a(n)
n n n n n n n n .
a. explanatory variable n
b. controlvariable n
c. predictor variable n
d. response variable n
n n n n n n n n n n n n
With PERFECT SOLUTION AVAILABLE OF ALL CHAPTERS
n n n n n n
Chapter 1 n
1. Econometrics is the branch of economics that . n n n n n n n
a. studies the behavior of individual economic agents inmaking 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 andsolve economic problems.
n n n n n n n n n n
Econometrics is based on the development of statistical n n n n n n n
methods for estimating economic relationships, testing
n n n n n n
economic theories, evaluating government and business
n n n n n n
policies.
n
2. Nonexperimental data is called . n n n n
a. cross-sectional data n
b. time series data
n n
c. observational data n
d. panel data n
3. Which of the following is true ofexperimental data?
n n n n n n n n
a. Experimental data are collected inlaboratory 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
4. An empirical analysis relies on
n n n n n to test a theory.
n n n
a. common sense n
b. ethicalconsiderations n
c. data
d. customs and conventions 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 n .
a. error term n
b. parameter
c. hypothesis
d. dependent variable n
6. Theparameters of aneconometric model
n . 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 strength of the relationship between thevariable under study and the 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
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 an econometric model n n n n
d. Testingof hypotheses n n
8. A data set that consistsof a sampleof individuals, households, firms, cities, states,countries, or a
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 n
a. cross-sectional data set n n
b. longitudinal data set n n
c. timeseries data set
n n n
d. experimental data set n n
9. Data onthe income of lawgraduates 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. time series data
n n
d. cross-sectional data n
10. A data set that consists of observations on avariable or several variables over time is called a data
n n n n n n n n n n n n n n n n n n
set.
n
a. binary
b. cross-sectional
c. time series
n
d. experimental
11. Which of the following is anexampleof time 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. Data onthe consumption of wheat by 200 households during a year.
n n n n n n n n n n n
c. Data on the gross domestic product of acountry over a period of 10 years.
n n n n n n n n n n n n n n
d. Dataon the number of vacancies in various departments of an organization on a particular month.
n n n n n n n n n n n n n n n
12. Which of the following refers to panel data?
n n n n n n n
a. Dataon the unemployment rate in a country over a 5-year period
n n n n n n n n n n n
b. Data on the birth rate, death rate and population growth rate in developing countries over a10- year
n n n n n n n n n n n n n n n n n
period.
n
c. Data onthe income of 5 members of a family on a particular year.
n n n n n n n n n n n n n
d. Dataon the priceof a company’s share during a year.
n n n n n n n n n n
, 13. Whichof the following is a difference between panel and pooled cross-sectional data?
n n n n n n n n n n n n
a. A panel data set consists ofdata on different cross-sectional units over a given periodof time while a
n n n n n n n n n n n n n n n n n n
pooled data set consists of data on the same cross-sectional units over a given period of time.
n n n n n n n n n n n n n n n n n
b. A panel data set consists of data on the same cross-sectional units over a givenperiod of time while a
n n n n n n n n n n n n n n n n n n n
pooled data set consists of data on different cross-sectional units over a given period of time
n n n n n n n n n n n n n n n n
c. A panel data consistsof data on a single variablemeasured at a given point in time while a pooled data
n n n n n n n n n n n n n n n n n n n n
set consists of data on the same cross-sectional units over a given period of time.
n n n n n n n n n n n n n n n
d. A panel data set consists of data on a single variablemeasured at a given point intime while a pooled data
n n n n n n n n n n n n n n n n n n n n n
set consists of data on more than one variable at a given point in time.
n n n n n n n n n n n n n n n
14. has a causal effect on n n n n n .
a. Income; unemployment n
b. Height; health n
c. Income; consumption n
d. Age; wage n
15. Which of the following is true? n n n n n
a. A variable has acausal effect on anothervariable if both variables increase or decrease
n n n n n n n n n n n n n n
simultaneously.
n
b. Thenotion of ‘ceteris paribus’ plays an important role in causal analysis.
n n n n n n n n n n n
c. Difficulty in inferring causality disappears when studying data at fairly high levelsof aggregation.
n n n n n n n n n n n n n
d. The problem of inferring causality arises if experimental data is used for analysis.
n n n n n n n n n n n n
16. Experimental data are sometimes called retrospective data. F n n n n n n n
17. An economicmodelconsistsofmathematicalequations that describe various relationships between
n n n n n n n n n n n
economic variables. T
n n n
18. A cross-sectional data set consists of observations on a variable or several variables over time. F
n n n n n n n n n n n n n n n
19. A time series data is also called a longitudinal data set. T
n n n n n n n n n n n
20. The notion of ceteris paribus means “other factors being equal.” T
n n n n n n n n n n
Chapter 2 n
1. A dependent variable is alsoknown as a(n)
n n n n n n n n .
a. explanatory variable n
b. controlvariable n
c. predictor variable n
d. response variable n
