Test Bank
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,Test Bank
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, IntroductiontoEconometrics,4e(Stock/Watson)
r1 Chapter 1 Economic Questionsand Data
r1 r1 - r1
1.1 r1 r1 MultipleChoiceQuestions
1) Analyzingthebehaviorofunemploymentratesacross U.S.statesin Marchof2006is an 1r - 1r
r1 exampleofusing:
A) timeseriesdata.
B) paneldata.
C) cross-sectionaldata.
D) experimentaldata.
Answer: C
r1 r1
2) Studying inflationinthe United Statesfrom 1970to 2006 is an exampleofusing:
- 1r 1r 1r 1r 1r - 1r 1r
A) randomized controlledexperiments.
-
B) time seriesdata. -
C) paneldata.
D) cross-sectionaldata.
Answer: B
r1 r1
3) Analyzingtheeffectofminimumwagechangesonteenageemploymentacrossthe48 1r
r1 contiguous U.S. statesfrom 1980 to 2004 is an exampleofusing:
r1 r1 r1 r1 r1 r1 r1 r1
A) timeseriesdata.
B) paneldata.
C) havingatreatment groupvs.acontrolgroup, - r 1 r 1 sinceonlyteenagersreceive minimum wages.
- -
D) cross-sectionaldata.
Answer: B
r1 r1
4) Paneldata:
A) isalsocalledlongitudinaldata.
B) isthesameas timeseriesdata. r1
C) studiesagroupofpeople at apointin time. - - -
D) typicallyusescontrolandtreatmentgroups.
Answer: A
r1 r1
5) Econometricscanbedefined as followswiththeexception of: r1 r1 -
Test Bank
- Page 3
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, A) thescienceoftestingeconomictheory.
B) fittingmathematicaleconomic modelsto real-world data. - - -
C) asetoftoolsusedforforecastingfuturevaluesofeconomicvariables.
D) measuring theheightofeconomists. -
r1 Answer: D r1
6) Toprovidequantitative answerstopolicyquestions: r1
A) it is typicallysufficienttouse commonsense.
- r1 -
B) youshouldinterviewthepolicymakersinvolved.
C) youshouldexamineempiricalevidence.
D) istypicallyimpossiblesincepolicyquestionsarenotquantifiable.
r 1 Answer: C r1
7) Anexampleof arandomizedcontrolled experimentiswhen:
r 1 -
A) householdsreceiveataxrebatein oneyearbutnot theother. - -
B) oneU.S. stateincreasesminimumwagesand an adjacentstatedoes not, and
1r r1 - r1 r1
r1 employment differencesareobserved.
r1
C) randomvariablesarecontrolled forbyholding constantotherfactors. - -
D) some5th gradersin aspecificelementaryschoolareallowed tousecomputers at school
- - - r1 r1 -
r 1 whileothersarenot, andtheirend-of-yearperformanceiscomparedholding constantother
r1 -
r1 factors.
Answer: D r1
8) Idealrandomizedcontrolled experimentsineconomics are: - -
A) oftenperformedinpractice.
B) oftenusedbythe Federal Reservetostudytheeffectsofmonetarypolicy.
r1 r1
C) usefulbecausetheygivea definition ofacausaleffect. - -
D) sometimesusedbyuniversities todeterminewhograduates infouryears ratherthan - - - - r 1
r 1 five. Answer: C
r1 r1
9) Mosteconomicdataareobtained:
A) throughrandomizedcontrolledexperiments.
B) bycalibrationmethods.
C) throughtextbook examplestypicallyinvolvingten observationpoints.
- -
D) byobservingreal-worldbehavior.
r1 Answer: D r1
Test Bank - Page 4
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- Page 1
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,Test Bank
- Page 2
-
, IntroductiontoEconometrics,4e(Stock/Watson)
r1 Chapter 1 Economic Questionsand Data
r1 r1 - r1
1.1 r1 r1 MultipleChoiceQuestions
1) Analyzingthebehaviorofunemploymentratesacross U.S.statesin Marchof2006is an 1r - 1r
r1 exampleofusing:
A) timeseriesdata.
B) paneldata.
C) cross-sectionaldata.
D) experimentaldata.
Answer: C
r1 r1
2) Studying inflationinthe United Statesfrom 1970to 2006 is an exampleofusing:
- 1r 1r 1r 1r 1r - 1r 1r
A) randomized controlledexperiments.
-
B) time seriesdata. -
C) paneldata.
D) cross-sectionaldata.
Answer: B
r1 r1
3) Analyzingtheeffectofminimumwagechangesonteenageemploymentacrossthe48 1r
r1 contiguous U.S. statesfrom 1980 to 2004 is an exampleofusing:
r1 r1 r1 r1 r1 r1 r1 r1
A) timeseriesdata.
B) paneldata.
C) havingatreatment groupvs.acontrolgroup, - r 1 r 1 sinceonlyteenagersreceive minimum wages.
- -
D) cross-sectionaldata.
Answer: B
r1 r1
4) Paneldata:
A) isalsocalledlongitudinaldata.
B) isthesameas timeseriesdata. r1
C) studiesagroupofpeople at apointin time. - - -
D) typicallyusescontrolandtreatmentgroups.
Answer: A
r1 r1
5) Econometricscanbedefined as followswiththeexception of: r1 r1 -
Test Bank
- Page 3
-
, A) thescienceoftestingeconomictheory.
B) fittingmathematicaleconomic modelsto real-world data. - - -
C) asetoftoolsusedforforecastingfuturevaluesofeconomicvariables.
D) measuring theheightofeconomists. -
r1 Answer: D r1
6) Toprovidequantitative answerstopolicyquestions: r1
A) it is typicallysufficienttouse commonsense.
- r1 -
B) youshouldinterviewthepolicymakersinvolved.
C) youshouldexamineempiricalevidence.
D) istypicallyimpossiblesincepolicyquestionsarenotquantifiable.
r 1 Answer: C r1
7) Anexampleof arandomizedcontrolled experimentiswhen:
r 1 -
A) householdsreceiveataxrebatein oneyearbutnot theother. - -
B) oneU.S. stateincreasesminimumwagesand an adjacentstatedoes not, and
1r r1 - r1 r1
r1 employment differencesareobserved.
r1
C) randomvariablesarecontrolled forbyholding constantotherfactors. - -
D) some5th gradersin aspecificelementaryschoolareallowed tousecomputers at school
- - - r1 r1 -
r 1 whileothersarenot, andtheirend-of-yearperformanceiscomparedholding constantother
r1 -
r1 factors.
Answer: D r1
8) Idealrandomizedcontrolled experimentsineconomics are: - -
A) oftenperformedinpractice.
B) oftenusedbythe Federal Reservetostudytheeffectsofmonetarypolicy.
r1 r1
C) usefulbecausetheygivea definition ofacausaleffect. - -
D) sometimesusedbyuniversities todeterminewhograduates infouryears ratherthan - - - - r 1
r 1 five. Answer: C
r1 r1
9) Mosteconomicdataareobtained:
A) throughrandomizedcontrolledexperiments.
B) bycalibrationmethods.
C) throughtextbook examplestypicallyinvolvingten observationpoints.
- -
D) byobservingreal-worldbehavior.
r1 Answer: D r1
Test Bank - Page 4
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