McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Economics (BA Economics) .
| 101. |
A ______ is a value that may change within the scope of a given problem or set of operations |
| A. | constant |
| B. | variable |
| C. | function |
| D. | exponent |
| Answer» B. variable | |
| 102. |
__________ variable is a factor that is not itself under study but affects the measurement of the study variables or the examination of their relationships. |
| A. | exogenous |
| B. | endogenous |
| C. | extraneous |
| D. | dependent |
| Answer» C. extraneous | |
| 103. |
An index number is used: |
| A. | to measure changes in quantity |
| B. | to measure changes in demand |
| C. | to measure changes in a variable over time |
| D. | to measure changes in price |
| Answer» C. to measure changes in a variable over time | |
| 104. |
The ratio of a new price to the base year price is called the: |
| A. | price absolute |
| B. | price decrease |
| C. | price increase |
| D. | price relative |
| Answer» D. price relative | |
| 105. |
A simple aggregate quantity index is used to: |
| A. | measure the change in price of a product |
| B. | measure the change in quantity of a product |
| C. | measure the overall change in quantity of a range of products |
| D. | measure the overall change in price of a range of products |
| Answer» D. measure the overall change in price of a range of products | |
| 106. |
A simple aggregate price index: |
| A. | ignores relative quantities |
| B. | compares relative quantities to relative prices |
| C. | considers relative quantities |
| D. | compares absolute prices to absolute quantities |
| Answer» A. ignores relative quantities | |
| 107. |
This index measures the change from month to month in the cost of a representative ‘basket’ of goods and services of the type bought by a typical household |
| A. | paasche price index |
| B. | retail price index |
| C. | laspeyres price index |
| D. | financial times index |
| Answer» B. retail price index | |
| 108. |
The Laspeyres and Paasche index are examples of: |
| A. | weighted price index only |
| B. | aggregate index numbers |
| C. | weighted index numbers |
| D. | weighted quantity index only |
| Answer» C. weighted index numbers | |
| 109. |
The Laspeyres price index: |
| A. | regards the current year quantities as fixed |
| B. | regards the base year quantities as fixed |
| C. | regards the base year prices as fixed |
| D. | regards the current quality as fixed |
| Answer» B. regards the base year quantities as fixed | |
| 110. |
A scaling factor is used to: |
| A. | change a simple index to a weighted index |
| B. | convert the paasche index to a laspeyres index |
| C. | change an aggregate index to a weighted index |
| D. | change the base year |
| Answer» D. change the base year | |
| 111. |
The distinctive feature of the ______ index is that it uses a group of commodities purchased in the base period as the basis for comparison |
| A. | paasche’s |
| B. | laspeyres |
| C. | fisher’s |
| D. | dorbish-bowley |
| Answer» B. laspeyres | |
| 112. |
________was developed to measure changes in the cost of living in order to determine the wage increases necessary to maintain a constant standard of living. |
| A. | price index |
| B. | sensex |
| C. | correlation |
| D. | regression |
| Answer» A. price index | |
| 113. |
____________ measure of living costs based on changes in retail prices |
| A. | correlation |
| B. | whole sale price index |
| C. | consumer price index |
| D. | regression |
| Answer» C. consumer price index | |
| 114. |
Paasche index was developed by ______economist Hermann Paasche for measuring current price or quantity levels relative to those of a selected base period |
| A. | american |
| B. | british |
| C. | australian |
| D. | german |
| Answer» D. german | |
| 115. |
The ratio-moving-average procedure can be used to deseasonalize data |
| A. | true |
| B. | false |
| C. | either of the above |
| D. | none of the above |
| Answer» A. true | |
| 116. |
The weighing factor, used in the exponential smoothing method, is always a number between ______ |
| A. | zero and ten |
| B. | five and ten |
| C. | zero and one |
| D. | zero and negative one |
| Answer» C. zero and one | |
| 117. |
A moving average of a time series is the value around which a series moves over time. |
| A. | true |
| B. | false |
| C. | either of the above |
| D. | none of the above |
| Answer» B. false | |
| 118. |
In a time series analysis it is often important to analyze seasonal variations |
| A. | true |
| B. | false |
| C. | either of the above |
| D. | none of the above |
| Answer» A. true | |
| 119. |
The index number for the price of a good in 2002 was 142 and in 2003, it was 148.5, on a base year of 1994. What is the percent increase in price of gasoline from 2002 to 2003 |
| A. | 4.377% |
| B. | 4.577% |
| C. | 95.62% |
| D. | 6.5% |
| Answer» B. 4.577% | |
| 120. |
Which one of the following is not a component of the multiplicative time series model? |
| A. | trend |
| B. | irregular variation |
| C. | regression trend |
| D. | seasonality |
| Answer» C. regression trend | |
| 121. |
Which of the following is not a component of the multiplicative time series model? |
| A. | trend analysis |
| B. | seasonal variation |
| C. | cyclical variation |
| D. | regressive variation |
| Answer» D. regressive variation | |
| 122. |
The time series component that indicates a steady increase or decrease over time is known as a ____________ |
| A. | order |
| B. | pattern |
| C. | trend |
| D. | seasonality |
| Answer» C. trend | |
| 123. |
A pattern in a times-series model that occurs over a duration of more than a year is called a ___________ variation |
| A. | trend |
| B. | seasonal |
| C. | cyclical |
| D. | regressive |
| Answer» C. cyclical | |
| 124. |
Which two components are smoothed out by the moving average |
| A. | seasonality and irregular |
| B. | cyclicality; seasonality |
| C. | variability: randomality |
| D. | randomality; seasonality |
| Answer» A. seasonality and irregular | |
| 125. |
If a value is missing in a time series we can do one of the following |
| A. | just copy the previous value |
| B. | estimate it as an average between two neighbouring values |
| C. | take the overall mean as the best estimate of it |
| D. | ignore it |
| Answer» B. estimate it as an average between two neighbouring values | |
| 126. |
One of the classifications of time series is that they can be either |
| A. | categorical or ordinal |
| B. | stationary or non-stationary |
| C. | inflationary or non-inflationary |
| D. | increasing or decreasing |
| Answer» B. stationary or non-stationary | |
| 127. |
Another name for the regression method is |
| A. | linear method |
| B. | univariate method |
| C. | time series method |
| D. | causal method |
| Answer» D. causal method | |
| 128. |
Exponential smoothing is |
| A. | a method to use number exponents to smooth the time series |
| B. | one of the forecasting methods |
| C. | a method of testing linearity |
| D. | a method to find elasticity |
| Answer» B. one of the forecasting methods | |
| 129. |
“Sensex” is related to |
| A. | bse |
| B. | nse |
| C. | rbi |
| D. | sebi |
| Answer» A. bse | |
| 130. |
Which of the following is not one of the four types of variation that is estimated in time- series analysis |
| A. | predictable |
| B. | trend |
| C. | cyclical |
| D. | irregular |
| Answer» A. predictable | |
| 131. |
The cyclical component of time-series data is usually estimated using |
| A. | linear regression analysis |
| B. | moving averages |
| C. | exponential smoothing |
| D. | qualitative methods |
| Answer» D. qualitative methods | |
| 132. |
In time-series analysis, which source of variation can be estimated by the ratio-to-trend method |
| A. | cyclical |
| B. | trend |
| C. | seasonal |
| D. | irregular |
| Answer» C. seasonal | |
| 133. |
If regression analysis is used to estimate the linear relationship between the natural logarithm of the variable to be forecast and time, then the slope estimate is equal to |
| A. | the linear trend |
| B. | the natural logarithm of the rate of growth |
| C. | the natural logarithm of one plus the rate of growth |
| D. | the natural logarithm of the square root of the rate of growth |
| Answer» C. the natural logarithm of one plus the rate of growth | |
| 134. |
The use of a smoothing technique is appropriate when |
| A. | random behaviour is the primary source of variation |
| B. | seasonality is present |
| C. | data exhibit a strong trend |
| D. | all of the above are correct |
| Answer» A. random behaviour is the primary source of variation | |
| 135. |
Barometric methods are used to forecast |
| A. | seasonal variation |
| B. | secular trend |
| C. | cyclical variation |
| D. | irregular variation |
| Answer» C. cyclical variation | |
| 136. |
A single-equation econometric model of the demand for a product is a ________ equation in which the quantity demanded of the product is an ________ variable |
| A. | structural, exogenous |
| B. | structural, endogenous |
| C. | definitional, exogenous |
| D. | definitional, endogenous |
| Answer» B. structural, endogenous | |
| 137. |
Econometric forecasts require |
| A. | accurate estimates of the coefficients of structural equations |
| B. | forecasts of future values of exogenous variables |
| C. | appropriate theoretical models |
| D. | all of the above |
| Answer» D. all of the above | |
| 138. |
Laspeyre's formula does not obey |
| A. | factor reversal test |
| B. | time reversal test |
| C. | circular test |
| D. | none |
| Answer» B. time reversal test | |
| 139. |
P10 is the index for time |
| A. | 1 on 0 |
| B. | 0 on 1 |
| C. | 1 on 1 |
| D. | b) 0 on 0 |
| Answer» B. 0 on 1 | |
| 140. |
Fisher's Ideal Formula for calculating index nos. satisfies the________ tests |
| A. | units test |
| B. | factor reversal test |
| C. | both a and b |
| D. | do not satisfy any test |
| Answer» C. both a and b | |
| 141. |
_______________ is particularly suitable for the construction of index nos |
| A. | harmonic mean |
| B. | arithmetic mean |
| C. | geometric mean |
| D. | none |
| Answer» C. geometric mean | |
| 142. |
The________ of group indices given the General Index |
| A. | harmonic mean |
| B. | arithmetic mean |
| C. | geometric mean |
| D. | none of the above |
| Answer» B. arithmetic mean | |
| 143. |
In computing Index Numbers, ___________ is concerned with the measurement of price changes over a period of years, when it is desirable to shift the base |
| A. | unit test |
| B. | circular test |
| C. | time reversal test |
| D. | none of the above |
| Answer» B. circular test | |
| 144. |
Index nos. are often constructed from the |
| A. | frequency |
| B. | class |
| C. | sample |
| D. | none |
| Answer» C. sample | |
| 145. |
The formula should be independent of the unit in which or for which price and quantities are quoted in |
| A. | unit test |
| B. | time reversal test |
| C. | factor reversal test |
| D. | none of the above |
| Answer» A. unit test | |
| 146. |
Factor Reversal test is satisfied by |
| A. | fisher\s ideal index |
| B. | laspeyres index |
| C. | paasches index |
| D. | none of the above |
| Answer» A. fisher\s ideal index | |
| 147. |
The index no. is a special type of average |
| A. | false |
| B. | true |
| C. | both |
| D. | none |
| Answer» B. true | |
| 148. |
Laspeyre's method and Paasche's method do not satisfy |
| A. | unit test |
| B. | time reversal test |
| C. | factor reversal test |
| D. | none of the above |
| Answer» B. time reversal test | |
| 149. |
We use price index numbers |
| A. | to measure and compare prices |
| B. | to measure prices |
| C. | to compare prices |
| D. | none of the above |
| Answer» A. to measure and compare prices | |
| 150. |
Simple aggregate of quantities is a type of |
| A. | quantity control |
| B. | quantity indices |
| C. | both |
| D. | none of the above |
| Answer» B. quantity indices | |
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