IntroductoryEconometncs; A Modern Approach 7th Edition
by Jeffrey M. Wooldridge (Author)
INTRODUCTORY
ECONOMETRICS
TestBank–IntroductoryEconometrics:AModernApproach,5th
, EditionbyJeffreyM.Wooldridge
WithPERFECTSOLUTIONAVAILABLEOFALLCHAPTERS
1. Econometrics is the branch of economics that .
a. studies the behavior of individual economic agents in making economic decisions
b. develops and uses statistical methods for estimatingKeconomic relationships
c. deals with the performance, structure, behavior, and decision-making of an economy as a whole
d. applies mathematical methods to represent economic theories and solve economic problems.
Answer: b Diff
iculty: Easy
Bloom’s: Knowledge
A-
Head: What is Econometrics? B
USPROG:
Feedback: Econometrics is the branch of economics that develops and usesKstatistical methods for estima
ting economic relationships.
2. Nonexperimental data is called .
a. cross-sectional data
b. time series data
c. observational data
d. panel data
Answer: b Diff
iculty: Easy
Bloom’s: Knowledge
A-
Head: What is Econometrics? B
USPROG:
Feedback:
3. Which of the followingKisKtrue of experimental data?
a. Experimental data are collected in laboratory environments in the natural sciences.
b. Experimental data cannot be collected in a controlled environment.
c. Experimental data is sometimes called observational data.
d. Experimental data isKsometimes called retrospective data.
Answer: a Diff
iculty: Easy
Bloom’s: Knowledge
A-Head: What is Econometrics?
,BUSPROG:
Feedback:
4. An empirical analysis relies on to test a theory.
a. common sense
b. ethical considerations
c. data
d. customs and conventions
Answer: c Diffi
culty: Easy
Bloom’s: Knowledge
A-
Head: Steps in Empirical Economic Analysis BUSP
ROG:
Feedback: An empirical analysis relies on data to test a theory.
5. The term ‘u’ in an econometric model is usually referred to as the .
a. error term
b. parameter
c. hypothesis
d. dependent variable
Answer: a Diff
iculty: Easy
Bloom’s: Knowledge
A-
Head: Steps in Empirical Economic Analysis BUSP
ROG:
Feedback: The term u in an econometric model is called the error term or disturbance term.
6. The parameters of an econometric model .
a. include all unobserved factors affecting the variable being studied
b. describe the strength of the relationship between the variable under study and the factors affecting it
c. refer to the explanatory variables included in the model
d. refer to the predictions that can be made using the model
Answer: b Diff
iculty: Easy
Bloom’s: Knowledge
A-
Head: Steps in Empirical Economic Analysis BUSP
ROG:
Feedback: The parameters of an econometric model describe the direction and strength of the relationsh
ip between the variable under study and the factors affecting it.
, 7. Which of the following is the first step in empirical economic analysis?
a. Collection of data
b. Statement of hypotheses
c. Specification of an econometric model
d. TestingKof hypotheses
Answer: c Diffi
culty: Easy
Bloom’s: Knowledge
A-
Head: Steps in Empirical Economic Analysis BUSP
ROG:
Feedback: The first step in empirical economic analysis is the specification of the econometricKmodel.
8. A data set that consists of a sample of individuals, households, firms, cities, states, countries, or a
variety of other units, taken at a given point in time, is called a(n) .
a. cross-sectional data set
b. longitudinal data set
c. time series data set
d. experimental data set
Answer: a Diff
iculty: Easy
Bloom’s: Knowledge
A-
Head: The Structure of Economic Data BUSPROG:
Feedback: A data set that consists of a sample of individuals, households, firms, cities, states, countries,
or a variety of other units, taken at a given point in time, is called a cross-sectional data set.
9. Data on the income of law graduates collected at different times during the same year is .
a. panel data
b. experimental data
c. time series data
d. cross-sectional data
Answer: d Diff
iculty: Easy
Bloom’s: Application
A-
Head: The Structure of Economic Data BUSPROG:
Analytic