Question 1

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 2

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 3

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, Okun's 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 4

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 5

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 6

The accompanying graph   Is an example of

Accepted Answer

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

Question 7

The reason why economists do not use experimental data more frequently is for all of the following reasons except that real-world experiments

Accepted Answer

A) cannot be executed in economics. 
B) with humans are difficult to administer. 
C) are often unethical. 
D) have flaws relative to ideal randomized controlled experiments. 
A) cannot be executed in economics. 
B) with humans are difficult to administer. 
C) are often unethical. 
D) have flaws relative to ideal randomized controlled experiments.

Question 8

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 9

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 10

The most frequently used experimental or observational data in econometrics are of the following type:

Accepted Answer

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

Question 11

In a randomized controlled experiment

Accepted Answer

A) there is a control group and a treatment group. 
B) you control for the effect that random numbers are not truly randomly generated 
C) you control for random answers 
D) the control group receives treatment on even days only. 
A) there is a control group and a treatment group. 
B) you control for the effect that random numbers are not truly randomly generated 
C) you control for random answers 
D) the control group receives treatment on even days only.

Question 12

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.

Question 13

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 14

One of the primary advantages of using econometrics over typical results from economic theory, is that

Accepted Answer

A) it potentially provides you with quantitative answers for a policy problem rather than simply suggesting the direction (positive/negative)of the response. 
B) teaching you how to use statistical packages 
C) learning how to invert a 4 by 4 matrix. 
D) all of the above. 
A) it potentially provides you with quantitative answers for a policy problem rather than simply suggesting the direction (positive/negative)of the response. 
B) teaching you how to use statistical packages 
C) learning how to invert a 4 by 4 matrix. 
D) all of the above.

Question 15

In the graph below, the vertical axis represents average real GDP growth for 65 countries over the period 1960-1995, and the horizontal axis shows the average trade share within these countries.   This is an example of

Accepted Answer

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

Question 16

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 17

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.

Econometrics can be defined as follows with the exception of

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.

To provide quantitative answers to policy questions

Ideal randomized controlled experiments in economics are

The accompanying graph Is an example of

The reason why economists do not use experimental data more frequently is for all of the following reasons except that real-world experiments

Most economic data are obtained

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

The most frequently used experimental or observational data in econometrics are of the following type:

In a randomized controlled experiment

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

The accompanying graph is an example of

One of the primary advantages of using econometrics over typical results from economic theory, is that

In the graph below, the vertical axis represents average real GDP growth for 65 countries over the period 1960-1995, and the horizontal axis shows the average trade share within these countries. This is an example of

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

Panel data

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

Exam 1: Economic Questions and Data

Econometrics can be defined as follows with the exception of

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.

To provide quantitative answers to policy questions

Ideal randomized controlled experiments in economics are

The accompanying graph Is an example of

The reason why economists do not use experimental data more frequently is for all of the following reasons except that real-world experiments

Most economic data are obtained

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

The most frequently used experimental or observational data in econometrics are of the following type:

In a randomized controlled experiment

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

The accompanying graph is an example of

One of the primary advantages of using econometrics over typical results from economic theory, is that

In the graph below, the vertical axis represents average real GDP growth for 65 countries over the period 1960-1995, and the horizontal axis shows the average trade share within these countries. This is an example of

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

Panel data

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