Question 1

Why is a random error term included in an econometric model?

Accepted Answer

A) because many economic models have not been well developed yet and need to allow for inaccuracies 
B) because some people are irrational 
C) because there is intrinsic uncertainty in any economic activity due to individual decision making 
D) because most estimating techniques are not well suited to work with a deterministic model. 
A) because many economic models have not been well developed yet and need to allow for inaccuracies 
B) because some people are irrational 
C) because there is intrinsic uncertainty in any economic activity due to individual decision making 
D) because most estimating techniques are not well suited to work with a deterministic model. C

Question 2

Suppose you stand outside a store and randomly give some shoppers coupons as they enter while other shoppers receive none.You then record how much each shopper spends in the store.The data you collect are

Accepted Answer

A) survey data 
B) random data 
C) experimental data 
D) selective data 
A) survey data 
B) random data 
C) experimental data 
D) selective data C

Question 3

What does NBER stand for?

Accepted Answer

A) Northern Banks Emergency Reserves 
B) Normally Balanced Econometric Regression 
C) National Bureau of Economic Research 
D) National Business and Economic Regulators 
A) Northern Banks Emergency Reserves 
B) Normally Balanced Econometric Regression 
C) National Bureau of Economic Research 
D) National Business and Economic Regulators C

Question 4

What does it mean for a panel data set to be balanced?

Accepted Answer

A) males and females are equally represented in the sample 
B) the observations are equally split before and after the event being studied 
C) the number of observations in the treatment and control group are equal 
D) each unit of observation is observed for the same number of time periods 
A) males and females are equally represented in the sample 
B) the observations are equally split before and after the event being studied 
C) the number of observations in the treatment and control group are equal 
D) each unit of observation is observed for the same number of time periods

Question 5

Which regional Federal Reserve Bank provides access to large amounts of economic data through FRED?

Accepted Answer

A) Boston 
B) New York 
C) San Francisco 
D) St.Louis 
A) Boston 
B) New York 
C) San Francisco 
D) St.Louis

Question 6

The parameters estimated using econometric methods are generally used for ___________________ or _____________________.

Accepted Answer

A) testing hypotheses,predicting 
B) confirming,denying effects of policy. 
C) validation,repudiation. 
D) generating data,probability distributions. 
A) testing hypotheses,predicting 
B) confirming,denying effects of policy. 
C) validation,repudiation. 
D) generating data,probability distributions.

Question 7

Refer to the following equation: Qs = $\beta$1 +$\beta$2P + $\beta$3Pr + $\beta$4Ps + $\beta$5TAX + e
Where Qs is annual quantity supplied,P is the price of the product,Pr is the price of resources,Ps is the price of goods that are substitutes in production,and TAX is the excise tax on the product.This equation is

Accepted Answer

A) an economic model 
B) an econometric model 
C) a market model 
D) a non-linear model 
A) an economic model 
B) an econometric model 
C) a market model 
D) a non-linear model

Question 8

Economic theory provides a basis for which variables are relevant and should be included in an econometric model.But econometrics provides tools to estimate ____________________ which tells us ________________________________.

Accepted Answer

A) a model,the functional form that should be used. 
B) causality,why it happens that way 
C) a parameter,how much or to what degree things change. 
D) variables,the probability of a specific outcome. 
A) a model,the functional form that should be used. 
B) causality,why it happens that way 
C) a parameter,how much or to what degree things change. 
D) variables,the probability of a specific outcome.

Question 9

Refer to the following equation: Qs = $\beta$1 +$\beta$2P + $\beta$3Pr + $\beta$4Ps + $\beta$5TAX + e
Where Qs is annual quantity supplied,P is the price of the product,Pr is the price of resources,Ps is the price of goods that are substitutes in production,and TAX is the excise tax on the product.In this equation $\beta$1 represents

Accepted Answer

A) a parameter to be estimated 
B) the random error term 
C) the predicted quantity supplied 
D) the equilibrium quantity 
A) a parameter to be estimated 
B) the random error term 
C) the predicted quantity supplied 
D) the equilibrium quantity

Question 10

Which of the following is NOT generally included in the study of econometrics?

Accepted Answer

A) using economic data to estimate relationships 
B) testing economic hypotheses 
C) predicting economic outcomes 
D) developing new economic relationships. 
A) using economic data to estimate relationships 
B) testing economic hypotheses 
C) predicting economic outcomes 
D) developing new economic relationships.

Question 11

Consider the following model: Qd = f(P,Ps,Pc,INC)
Where Qd is quantity demanded of a particular product per month,P is the price of the product,Ps is the price of substitutes,Pc is the price of complements,and INC is monthly income.
This equation represents

Accepted Answer

A) a non-linear model 
B) an economic model 
C) an econometric model 
D) a challenge to the law of demand. 
A) a non-linear model 
B) an economic model 
C) an econometric model 
D) a challenge to the law of demand.

Question 12

Which of the following variables is most likely to be quantitative?

Accepted Answer

A) gender 
B) education 
C) income 
D) employment 
A) gender 
B) education 
C) income 
D) employment

Question 13

Of the following steps in conducting empirical economic research,which one should be performed last?

Accepted Answer

A) find appropriate data that can be used for estimation 
B) build an economic model guided by economic theory 
C) evaluate and analyze the consequences and implications of the results 
D) estimate parameters and test hypotheses 
A) find appropriate data that can be used for estimation 
B) build an economic model guided by economic theory 
C) evaluate and analyze the consequences and implications of the results 
D) estimate parameters and test hypotheses

Question 14

Which of the following sections usually comes first in a research report?

Accepted Answer

A) state of problem 
B) description of data 
C) review of literature on the topic 
D) economic model 
A) state of problem 
B) description of data 
C) review of literature on the topic 
D) economic model

Why is a random error term included in an econometric model?

Suppose you stand outside a store and randomly give some shoppers coupons as they enter while other shoppers receive none.You then record how much each shopper spends in the store.The data you collect are

What does NBER stand for?

What does it mean for a panel data set to be balanced?

Which regional Federal Reserve Bank provides access to large amounts of economic data through FRED?

The parameters estimated using econometric methods are generally used for _ or ___.

Economic theory provides a basis for which variables are relevant and should be included in an econometric model.But econometrics provides tools to estimate which tells us ____________.

Which of the following is NOT generally included in the study of econometrics?

Consider the following model: Q^d = f(P,P^s,P^c,INC) Where Q^dis quantity demanded of a particular product per month,P is the price of the product,P^s is the price of substitutes,P^cis the price of complements,and INC is monthly income. This equation represents

Which of the following variables is most likely to be quantitative?

Of the following steps in conducting empirical economic research,which one should be performed last?

Which of the following sections usually comes first in a research report?

Pp : Prob, Probability Primer, Probability Primer

The Simple Linear Regression Model

Interval Estimation and Hypothesis Testing

Prediction, Goodness-Of-Fit and Modeling Issues

The Multiple Regression Model

Further Inference in the Multiple Regression Model

Using Indicator Variables

Heteroskedasticity

Regression With Time Series Data: Stationary Variables

Random Regressors and Moment Based Estimation

Simultaneous Equations Models

Regression With Time Series Data: Nonstationary Variables

Vector Error Correction and Vector Autoregressive Models

Time-Varying Volatility and Arch Models

Panel Data Models

Qualitative and Limited Dependent Variable Models

Filters

Exam 1: An Introduction to Econometrics

Why is a random error term included in an econometric model?

Suppose you stand outside a store and randomly give some shoppers coupons as they enter while other shoppers receive none.You then record how much each shopper spends in the store.The data you collect are

What does NBER stand for?

What does it mean for a panel data set to be balanced?

Which regional Federal Reserve Bank provides access to large amounts of economic data through FRED?

The parameters estimated using econometric methods are generally used for ___________________ or _____________________.

Economic theory provides a basis for which variables are relevant and should be included in an econometric model.But econometrics provides tools to estimate ____________________ which tells us ________________________________.

Which of the following is NOT generally included in the study of econometrics?

Consider the following model: Qd = f(P,Ps,Pc,INC) Where Qd is quantity demanded of a particular product per month,P is the price of the product,Ps is the price of substitutes,Pc is the price of complements,and INC is monthly income. This equation represents

Which of the following variables is most likely to be quantitative?

Of the following steps in conducting empirical economic research,which one should be performed last?

Which of the following sections usually comes first in a research report?

Pp : Prob, Probability Primer, Probability Primer

The Simple Linear Regression Model

Interval Estimation and Hypothesis Testing

Prediction, Goodness-Of-Fit and Modeling Issues

The Multiple Regression Model

Further Inference in the Multiple Regression Model

Using Indicator Variables

Heteroskedasticity

Regression With Time Series Data: Stationary Variables

Random Regressors and Moment Based Estimation

Simultaneous Equations Models

Regression With Time Series Data: Nonstationary Variables

Vector Error Correction and Vector Autoregressive Models

Time-Varying Volatility and Arch Models

Panel Data Models

Qualitative and Limited Dependent Variable Models

Filters

The parameters estimated using econometric methods are generally used for _ or ___.

Economic theory provides a basis for which variables are relevant and should be included in an econometric model.But econometrics provides tools to estimate which tells us ____________.

Consider the following model: Q^d = f(P,P^s,P^c,INC) Where Q^dis quantity demanded of a particular product per month,P is the price of the product,P^s is the price of substitutes,P^cis the price of complements,and INC is monthly income. This equation represents