TEST BANK FOR Introductory Econometrics: A Modern Approach 7th Edition by Jeffrey M. Wooldridge

TestBank–Introductory Econometrics: AModern Approach,5th
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Edition by Jeffrey M. Wooldridge n n n n n




WithPERFECT SOLUTIONAVAILABLEOFALLCHAPTERS
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Chapter 1 n




1. Econometrics is the branch of economics that . n n n n n n




a. studies the behavior of individual economic agents in making economic decisions
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b. develops and uses statistical methods for estimating economic relationships
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c. deals with the performance, structure, behavior, and decision-making of an economy as a whole
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d. applies mathematical methods to represent economic theories and solve economic problems.
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Answer: b n




Difficulty: Easy
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Bloom’s:Knowledge
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A-Head: WhatisEconometrics?
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BUSPROG:
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Feedback: Econometrics is the branchofeconomicsthatdevelopsanduses statisticalmethods for
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estimating economic relationships.
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2. Nonexperimental data is called n n n .
a. cross-sectional data n




b. timeseries data
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c. observational data n




d. panel data
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Answer: b n




Difficulty: Easy
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Bloom’s:Knowledge
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A-Head: WhatisEconometrics?
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BUSPROG:
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Feedback:

3. Whichof the following is true of experimental data?
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a. Experimental data are collected in laboratory environments in the natural sciences.
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b. Experimental data cannot be collected in a controlled environment.
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c. Experimental data is sometimes called observational data.
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d. Experimental data is sometimes called retrospective data. n n n n n n




Answer: a n




Difficulty:Easy
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Bloom’s: Knowledge
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A-Head: What is Econometrics?
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,BUSPROG:
Feedback:

4. Anempirical analysis relies on
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a. common sense n




b. ethical considerations n




c. data
d. customs andconventions n n




Answer: c n




Difficulty:Easy
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Bloom’s: Knowledge n




A-Head: Steps inEmpirical EconomicAnalysis
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BUSPROG:
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Feedback:Anempirical analysis relies ondata to test atheory.
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5. The term ‘u’ in an econometric model is usually referred to as the
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a. errorterm n




b. parameter
c. hypothesis
d. dependent variable n




Answer: a n




Difficulty:Easy
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Bloom’s: Knowledge n




A-Head: Steps inEmpirical EconomicAnalysis
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BUSPROG:
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Feedback: Theterm uin aneconometricmodel is called the error termor disturbance term.
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6. The parameters of aneconometric model
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a. include all unobserved factors affecting the variable being studied
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b. describe the strengthof the relationship between thevariable under study andthe factors affecting it
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c. refer to the explanatory variables included in the model
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d. refer to the predictions that can be made using the model
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Answer: b n




Difficulty: Easy
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Bloom’s:Knowledge
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A-Head: Steps inEmpirical EconomicAnalysis
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BUSPROG:
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Feedback: The parametersof aneconometricmodel describe thedirectionand strength of the
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relationship between the variable under study and the factors affecting it.
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,7. Whichof the followingis the first step in empirical economic analysis?
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a. Collectionof data n n




b. Statementof hypotheses n n




c. Specification of aneconometric model n n n n




d. Testingof hypotheses n n




Answer: c n




Difficulty:Easy
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Bloom’s: Knowledge n




A-Head: Steps inEmpirical EconomicAnalysis
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BUSPROG:
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Feedback: The first step in empirical economic analysis is the specification of the econometric model.
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8. A data set thatconsistsof asampleof individuals,households, firms,cities,states,countries, ora
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variety of other units, taken at a given point in time, is called a(n)
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a. cross-sectional data set n n




b. longitudinal data set n n




c. time series data set
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d. experimental data set n n




Answer: a n




Difficulty:Easy
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Bloom’s: Knowledge n




A-Head: The Structureof EconomicData
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BUSPROG:
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Feedback: Adataset thatconsistsof a sampleofindividuals, households, firms,cities, states, countries, or a
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variety of other units, taken at a given point in time, is called a cross-sectional data set.
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9. Data onthe income oflaw graduates collected at different times during the same year is
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a. panel data n




b. experimental data n




c. timeseries data
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d. cross-sectional data n




Answer: d n




Difficulty:Easy
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Bloom’s: Application n




A-Head: The Structureof EconomicData
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BUSPROG: Analytic
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, Feedback: A data set that consists of a sample of individuals, households, firms, cities, states, countries, or a
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variety of other units, taken at a given point in time, is called a cross-sectional data set. Therefore, data on
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the income of law graduates on a particular year are examples of cross-sectional data.
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10. A data set that consists of observations on a variable or several variables over time is called a
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data set.
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a. binary
b. cross-sectional
c. time series n




d. experimental

Answer: c n




Difficulty:Easy
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Bloom’s: Knowledge n




A-Head: The Structureof EconomicData
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BUSPROG:
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Feedback: A time-series data set consists of observations on a variable or several variables over time.
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11. Whichof the followingis an example oftime series data?
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a. Data onthe unemployment rates in different parts of a country during a year.
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b. Dataonthe consumption of wheat by 200 households during a year.
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c. Dataonthegross domestic product of a country over aperiod of 10 years.
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d. Dataonthe number ofvacancies invarious departments ofanorganization on a particular month.
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Answer: c n




Difficulty:Easy
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Bloom’s: Application n




A-Head: The Structureof EconomicData
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BUSPROG: Analytic
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Feedback: A time-series data set consists of observations on a variable or several variables over
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time. Therefore, data on the gross domestic product of a country over a period of 10 years is an example of
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time series data.
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12. Whichof the followingrefers to panel data? n n n n n n n




a. Dataonthe unemploymentrate in a country over a5-year period
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b. Dataonthe birthrate, death rateand populationgrowth ratein developing countries over a10-year
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period.
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c. Dataonthe income of 5 members of a family ona particular year.
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d. Dataonthe priceof a company’s share during a year.
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Answer: b n




Difficulty:Easy
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