lOMoAR cPSD| 11700591
BE Test Bank - Summary Basic Econometrics
Test Bank –Introductory Econometrics: A Modern Approach, 5th Edition by Jeffrey
M. Wooldridge With PERFECT SOLUTION AVAILABLE OF ALL CHAPTERS
Chapter 1
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 estimating economic 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 Difficulty: Easy Bloom‘s: Knowledge
A-Head: What is Econometrics? BUSPROG:
Feedback: Econometrics is the branch of economics that develops and uses statistical
methods for estimating economic relationships.
2. Nonexperimental data is called .
a. cross-sectional data
b. time series data
c. observational data
d. panel data
Answer: c Difficulty: Easy Bloom‘s: Knowledge
A-Head: What is Econometrics? BUSPROG:
Feedback:
3. Which of the following is true 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 is sometimes called retrospective data.
Answer: a Difficulty: Easy Bloom‘s: Knowledge
A-Head: What is Econometrics? BUSPROG:
, lOMoAR cPSD| 11700591
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 Difficulty: Easy Bloom‘s: Knowledge
A-Head: Steps in Empirical Economic Analysis BUSPROG:
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 Difficulty: Easy Bloom‘s: Knowledge
A-Head: Steps in Empirical Economic Analysis BUSPROG:
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 Difficulty: Easy Bloom‘s: Knowledge
A-Head: Steps in Empirical Economic Analysis BUSPROG:
Feedback: The parameters of an econometric model describe the direction and strength of
the relationship 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
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c. Specification of an econometric model
d. Testing of hypotheses
Answer: c Difficulty: Easy Bloom‘s: Knowledge
A-Head: Steps in Empirical Economic Analysis BUSPROG:
Feedback: The first step in empirical economic analysis is the specification of the
econometric model.
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 Difficulty: 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 Difficulty: Easy
Bloom‘s: Application
A-Head: The Structure of Economic Data BUSPROG: Analytic
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. Therefore, data on the income of law graduates on a particular year are
examples of cross-sectional data.
10. A data set that consists of observations on a variable or several variables over time
, lOMoAR cPSD| 11700591
is called a data set.
a. binary
b. cross-sectional
c. time series
d. experimental
Answer: c Difficulty: Easy
Bloom‘s: Knowledge
A-Head: The Structure of Economic Data BUSPROG:
Feedback: A time-series data set consists of observations on a variable or several variables
over time.
11. Which of the following is an example of time series data?
a. Data on the unemployment rates in different parts of a country during a year.
b. Data on the consumption of wheat by 200 households during a year.
c. Data on the gross domestic product of a country over a period of 10 years.
d. Data on the number of vacancies in various departments of an organization on a
particular month.
Answer: c Difficulty: Easy
Bloom‘s: Application
A-Head: The Structure of Economic Data BUSPROG: Analytic
Feedback: A time-series data set consists of observations on a variable or several variables
over
time. Therefore, data on the gross domestic product of a country over a period of 10 years
is an example of time series data.
12. Which of the following refers to panel data?
a. Data on the unemployment rate in a country over a 5-year period
b. Data on the birth rate, death rate and population growth rate in developing countries
over a 10-year period.
c. Data on the income of 5 members of a family on a particular year.
d. Data on the price of a company‘s share during a year.
Answer: b Difficulty: Easy
Bloom‘s: Application
A-Head: The Structure of Economic Data BUSPROG: Analytic
BE Test Bank - Summary Basic Econometrics
Test Bank –Introductory Econometrics: A Modern Approach, 5th Edition by Jeffrey
M. Wooldridge With PERFECT SOLUTION AVAILABLE OF ALL CHAPTERS
Chapter 1
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 estimating economic 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 Difficulty: Easy Bloom‘s: Knowledge
A-Head: What is Econometrics? BUSPROG:
Feedback: Econometrics is the branch of economics that develops and uses statistical
methods for estimating economic relationships.
2. Nonexperimental data is called .
a. cross-sectional data
b. time series data
c. observational data
d. panel data
Answer: c Difficulty: Easy Bloom‘s: Knowledge
A-Head: What is Econometrics? BUSPROG:
Feedback:
3. Which of the following is true 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 is sometimes called retrospective data.
Answer: a Difficulty: Easy Bloom‘s: Knowledge
A-Head: What is Econometrics? BUSPROG:
, lOMoAR cPSD| 11700591
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 Difficulty: Easy Bloom‘s: Knowledge
A-Head: Steps in Empirical Economic Analysis BUSPROG:
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 Difficulty: Easy Bloom‘s: Knowledge
A-Head: Steps in Empirical Economic Analysis BUSPROG:
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 Difficulty: Easy Bloom‘s: Knowledge
A-Head: Steps in Empirical Economic Analysis BUSPROG:
Feedback: The parameters of an econometric model describe the direction and strength of
the relationship 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
, lOMoAR cPSD| 11700591
c. Specification of an econometric model
d. Testing of hypotheses
Answer: c Difficulty: Easy Bloom‘s: Knowledge
A-Head: Steps in Empirical Economic Analysis BUSPROG:
Feedback: The first step in empirical economic analysis is the specification of the
econometric model.
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 Difficulty: 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 Difficulty: Easy
Bloom‘s: Application
A-Head: The Structure of Economic Data BUSPROG: Analytic
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. Therefore, data on the income of law graduates on a particular year are
examples of cross-sectional data.
10. A data set that consists of observations on a variable or several variables over time
, lOMoAR cPSD| 11700591
is called a data set.
a. binary
b. cross-sectional
c. time series
d. experimental
Answer: c Difficulty: Easy
Bloom‘s: Knowledge
A-Head: The Structure of Economic Data BUSPROG:
Feedback: A time-series data set consists of observations on a variable or several variables
over time.
11. Which of the following is an example of time series data?
a. Data on the unemployment rates in different parts of a country during a year.
b. Data on the consumption of wheat by 200 households during a year.
c. Data on the gross domestic product of a country over a period of 10 years.
d. Data on the number of vacancies in various departments of an organization on a
particular month.
Answer: c Difficulty: Easy
Bloom‘s: Application
A-Head: The Structure of Economic Data BUSPROG: Analytic
Feedback: A time-series data set consists of observations on a variable or several variables
over
time. Therefore, data on the gross domestic product of a country over a period of 10 years
is an example of time series data.
12. Which of the following refers to panel data?
a. Data on the unemployment rate in a country over a 5-year period
b. Data on the birth rate, death rate and population growth rate in developing countries
over a 10-year period.
c. Data on the income of 5 members of a family on a particular year.
d. Data on the price of a company‘s share during a year.
Answer: b Difficulty: Easy
Bloom‘s: Application
A-Head: The Structure of Economic Data BUSPROG: Analytic
