Question 1

An example of a randomized controlled experiment is when

Accepted Answer

A) households receive a tax rebate in one year but not the other. 
B) one U.S.state increases minimum wages and an adjacent state does not, and employment differences are observed. 
C) random variables are controlled for by holding constant other factors. 
D) some 5th graders in a specific elementary school are allowed to use computers at school while others are not, and their end-of-year performance is compared
Holding constant other factors. 
A) households receive a tax rebate in one year but not the other. 
B) one U.S.state increases minimum wages and an adjacent state does not, and employment differences are observed. 
C) random variables are controlled for by holding constant other factors. 
D) some 5th graders in a specific elementary school are allowed to use computers at school while others are not, and their end-of-year performance is compared
Holding constant other factors. D

Question 2

Give at least three examples from economics where each of the following type of data
can be used: cross-sectional data, time series data, and panel data.

Accepted Answer

Answers will vary by student.At this level of economics, students most likely
have heard of the following use of cross-sectional data: earnings functions,
growth equations, the effect of class size reduction on student performance (in
this chapter), demand functions (in this chapter: cigarette consumption); time
series: the Phillips curve (in this chapter), consumption functions, Okuns' law;
panel data: various U.S.state panel studies on road fatalities (in this book),
unemployment rate and unemployment benefits variations, growth regressions
(across states and countries), and crime and abortion (Freakonomics).

Question 3

Econometrics can be defined as follows with the exception of

Accepted Answer

A) the science of testing economic theory. 
B) fitting mathematical economic models to real-world data. 
C) a set of tools used for forecasting future values of economic variables. 
D) measuring the height of economists. 
A) the science of testing economic theory. 
B) fitting mathematical economic models to real-world data. 
C) a set of tools used for forecasting future values of economic variables. 
D) measuring the height of economists. D

Question 4

Analyzing the behavior of unemployment rates across U.S.states in March of 2006 is an example of using

Accepted Answer

A) time series data. 
B) panel data. 
C) cross-sectional data. 
D) experimental data. 
A) time series data. 
B) panel data. 
C) cross-sectional data. 
D) experimental data.

Question 5

To provide quantitative answers to policy questions

Accepted Answer

A) it is typically sufficient to use common sense. 
B) you should interview the policy makers involved. 
C) you should examine empirical evidence. 
D) is typically impossible since policy questions are not quantifiable. 
A) it is typically sufficient to use common sense. 
B) you should interview the policy makers involved. 
C) you should examine empirical evidence. 
D) is typically impossible since policy questions are not quantifiable.

Question 6

The accompanying graph   is an example of

Accepted Answer

A) experimental data. 
B) cross-sectional data. 
C) a time series. 
D) longitudinal data. 
A) experimental data. 
B) cross-sectional data. 
C) a time series. 
D) longitudinal data.

Question 7

Most economic data are obtained

Accepted Answer

A) through randomized controlled experiments. 
B) by calibration methods. 
C) through textbook examples typically involving ten observation points. 
D) by observing real-world behavior. 
A) through randomized controlled experiments. 
B) by calibration methods. 
C) through textbook examples typically involving ten observation points. 
D) by observing real-world behavior.

Question 8

Panel data

Accepted Answer

A) is also called longitudinal data. 
B) is the same as time series data. 
C) studies a group of people at a point in time. 
D) typically uses control and treatment groups. 
A) is also called longitudinal data. 
B) is the same as time series data. 
C) studies a group of people at a point in time. 
D) typically uses control and treatment groups.

Question 9

Analyzing the effect of minimum wage changes on teenage employment across the 48 contiguous U.S.states from 1980 to 2004 is an example of using

Accepted Answer

A) time series data. 
B) panel data. 
C) having a treatment group vs.a control group, since only teenagers receive minimum wages. 
D) cross-sectional data. 
A) time series data. 
B) panel data. 
C) having a treatment group vs.a control group, since only teenagers receive minimum wages. 
D) cross-sectional data.

Question 10

Ideal randomized controlled experiments in economics are

Accepted Answer

A) often performed in practice. 
B) often used by the Federal Reserve to study the effects of monetary policy. 
C) useful because they give a definition of a causal effect. 
D) sometimes used by universities to determine who graduates in four years rather than five. 
A) often performed in practice. 
B) often used by the Federal Reserve to study the effects of monetary policy. 
C) useful because they give a definition of a causal effect. 
D) sometimes used by universities to determine who graduates in four years rather than five.

Question 11

Studying inflation in the United States from 1970 to 2006 is an example of using

Accepted Answer

A) randomized controlled experiments. 
B) time series data. 
C) panel data. 
D) cross-sectional data. 
A) randomized controlled experiments. 
B) time series data. 
C) panel data. 
D) cross-sectional data.

An example of a randomized controlled experiment is when

Give at least three examples from economics where each of the following type of data can be used: cross-sectional data, time series data, and panel data.

Econometrics can be defined as follows with the exception of

Analyzing the behavior of unemployment rates across U.S.states in March of 2006 is an example of using

To provide quantitative answers to policy questions

The accompanying graph is an example of

Most economic data are obtained

Panel data

Analyzing the effect of minimum wage changes on teenage employment across the 48 contiguous U.S.states from 1980 to 2004 is an example of using

Ideal randomized controlled experiments in economics are

Studying inflation in the United States from 1970 to 2006 is an example of using

Review of Probability

Review of Statistics

Linear Regression With One Regressor

Regression With a Single Regressor: Hypothesis Tests and Confidence Intervals

Linear Regression With Multiple Regressors

Hypothesis Tests and Confidence Intervals in Multiple Regression

Nonlinear Regression Functions

Assessing Studies Based on Multiple Regression

Regression With Panel Data

Regression With a Binary Dependent Variable

Instrumental Variables Regression

Experiments and Quasi-Experiments

Introduction to Time Series Regression and Forecasting

Estimation of Dynamic Causal Effects

Additional Topics in Time Series Regression

The Theory of Linear Regression With One Regressor

The Theory of Multiple Regression

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Exam 1: Economic Questions and Data

An example of a randomized controlled experiment is when

Give at least three examples from economics where each of the following type of data can be used: cross-sectional data, time series data, and panel data.

Econometrics can be defined as follows with the exception of

Analyzing the behavior of unemployment rates across U.S.states in March of 2006 is an example of using

To provide quantitative answers to policy questions

The accompanying graph is an example of

Most economic data are obtained

Panel data

Analyzing the effect of minimum wage changes on teenage employment across the 48 contiguous U.S.states from 1980 to 2004 is an example of using

Ideal randomized controlled experiments in economics are

Studying inflation in the United States from 1970 to 2006 is an example of using

Review of Probability

Review of Statistics

Linear Regression With One Regressor

Regression With a Single Regressor: Hypothesis Tests and Confidence Intervals

Linear Regression With Multiple Regressors

Hypothesis Tests and Confidence Intervals in Multiple Regression

Nonlinear Regression Functions

Assessing Studies Based on Multiple Regression

Regression With Panel Data

Regression With a Binary Dependent Variable

Instrumental Variables Regression

Experiments and Quasi-Experiments

Introduction to Time Series Regression and Forecasting

Estimation of Dynamic Causal Effects

Additional Topics in Time Series Regression

The Theory of Linear Regression With One Regressor

The Theory of Multiple Regression

Filters