160+ Mathematical Economics Solved MCQs

1.

The intercept term,β1, is absent in.................. model.

A. regression through the origin
B. lin log model
C. log lin model
D. ols model
Answer» A. regression through the origin
2.

The lin log model and log lin model are ............. in parameters.

A. non linear
B. linear
C. functional
D. dependent
Answer» A. non linear
3.

r2 in intercept less model is.... .............. negative.

A. always
B. sometimes
C. never
D. cannot say
Answer» B. sometimes
4.

The slope coefficient ,β2, of ............ model measures elasticity of Y with respect to X.

A. regression through the origin
B. log log model
C. log lin model
D. clrm
Answer» B. log log model
5.

....................... is a growth model.

A. alinear trend model
B. lin log model
C. log lin model
D. none of the above
Answer» A. alinear trend model
6.

In regression through the origin model, ......................... is absent.

A. the intercept term ,β1
B. the slope coefficient ,β2
C. error term
D. explanatory variables
Answer» A. the intercept term ,β1
7.

Econometrics is concerned with

A. empirical support to economic theory
B. quantitative analysis of economic data
C. use of tools of mathematics and statistical inference
D. all of the above
Answer» D. all of the above
8.

Which of the following is the combination of economic theory, mathematical economics and economic statistics

A. econometrics
B. statistics
C. mathematics
D. quantitative economics
Answer» A. econometrics
9.

The first step in traditional econometric methodology is

A. statement of theory
B. forecasting
C. obtaining data
D. estimation of the model
Answer» A. statement of theory
10.

Which of the following discipline express the economic theory in mathematical form

A. econometrics
B. statistics
C. mathematics
D. mathematical economics
Answer» D. mathematical economics
11.

Keynes postulated ----- relationship between income and consumption

A. negative
B. positive
C. non linear
D. infinite
Answer» B. positive
12.

In the function, Q= α+βP, the slope coefficient is

A. α
B. β
C. p
D. q
Answer» B. β
13.

In the Keynesian linear consumption function Y=β1+β2X, Y represents

A. income
B. consumption expenditure
C. output
D. price
Answer» B. consumption expenditure
14.

In the Keynesian linear consumption function Y=β1+β2X, β1 is

A. slope coefficient
B. intercept coefficient
C. output coefficient
D. none of the above
Answer» B. intercept coefficient
15.

In the Keynesian linear consumption function Y=β1+β2X, the parameters of the model are

A. β1and β2
B. . β1and x
C. x and y d. y an
D. β2
Answer» A. β1and β2
16.

In the Keynesian linear consumption function Y=β1+β2X, the marginal propensity to consume is

A. β1
B. x
C. y
D. β2
Answer» D. β2
17.

if the model has only one equation, the model is called

A. single equation model
B. multiple equation model
C. variable equation model
D. none of the above
Answer» A. single equation model
18.

if the model has more than one equation, the model is called

A. single equation model
B. multiple equation model
C. variable equation model
D. none of the above
Answer» B. multiple equation model
19.

In the Keynesian linear consumption function Y=β1+β2X, the dependent variable is

A. β1
B. x
C. y
D. β2
Answer» C. y
20.

In the Keynesian linear consumption function Y=β1+β2X, the explanatory variable is

A. β1
B. x
C. y
D. β2
Answer» B. x
21.

the variable appearing on the left side of the equality sign is called

A. dependent variable
B. independent variable
C. explanatory variable
D. none of the above
Answer» A. dependent variable
22.

In conventional model r2 is .............. negative.

A. always
B. sometimes
C. never
D. cannot say
Answer» C. never
23.

the variable appearing on the right side of the equality sign is called

A. independent variable
B. explanatory variable
C. all of the above
D. none of the above
Answer» C. all of the above
24.

independent variables are also known as

A. explanatory variables
B. dependent variable
C. implicit variable
D. static variable
Answer» A. explanatory variables
25.

which is the explanatory variable in the Keynesian consumption function

A. income
B. consumption
C. price
D. output
Answer» A. income
26.

a mathematical model assumes----- relationship between variables

A. inexact
B. exact
C. probable
D. none of the above
Answer» B. exact
27.

a function that can be represented as straight line graphically is

A. non linear
B. linear
C. polynomial
D. quadratic
Answer» B. linear
28.

in the function Y=β1+β2X+u, the term ‘u’ is called

A. disturbance term
B. intercept
C. slope
D. dependent term
Answer» A. disturbance term
29.

A model in which regressand is logarithmic is called...............

A. regression through the origin
B. lin log model
C. log lin model
D. clrm
Answer» C. log lin model
30.

the function Y=β1+β2X+u is an example of

A. linear regression model
B. econometric model
C. all of the above
D. none of the above
Answer» C. all of the above
31.

confirmation or refutation of economic theories on the basis of sample evidence is based on the branch of statistical theory called

A. statistical inference
B. standard deviation
C. arithmetic mean
D. regression analysis
Answer» A. statistical inference
32.

the term regression was first introduced by

A. irwing fisher
B. laspayer
C. francis galton
D. pearson
Answer» C. francis galton
33.

Reciprocal and log lin models are ............. in variables.

A. non linear
B. linear
C. functional
D. dependent
Answer» B. linear
34.

the function Y=β1+β2X+u is an example of

A. non linear regression model
B. linear regression model
C. quadratic regression model
D. none of the above
Answer» B. linear regression model
35.

In the Keynesian linear consumption function Y=β1+β2X, the independent variable is

A. β1
B. . x
C. y
D. β2
Answer» B. . x
36.

Statistical relationships assumes that variables are

A. random
B. stochastic
C. all of the above
D. none of the above
Answer» C. all of the above
37.

A statistical relationship per say cannot logically imply

A. regression
B. causation
C. error
D. random
Answer» B. causation
38.

The measure that analyses the degree of linear association between two variables is called

A. correlation coefficient
B. regression coefficient
C. significance level
D. testing of hypothesis
Answer» A. correlation coefficient
39.

In the Keynesian linear consumption function Y=β1+β2X, X represents

A. income
B. consumption expenditure
C. output
D. price
Answer» A. income
40.

Correlation analysis is concerned with

A. prediction of future value
B. prediction of average value
C. degree of association among variables
D. testing of hypothesis
Answer» C. degree of association among variables
41.

Correlation theory is based on the assumption of

A. randomness of variables
B. conditional mean
C. random errors
D. specification
Answer» A. randomness of variables
42.

The correlation coefficient between the mathematics and economics was found to be 0.64. What will be the value of correlation coefficient between economics and mathematics

A. 0.32
B. -0.64
C. 0.64
D. 1.28
Answer» C. 0.64
43.

the law of universal regression was first introduced by

A. irwing fisher
B. laspayer
C. francis galton
D. pearson
Answer» C. francis galton
44.

In ------ analysis there is no distinction between dependent and explanatory variables

A. regression
B. correlation
C. hypothesis testing
D. estimation
Answer» B. correlation
45.

If we are studying the dependence of a variable on a single explanatory variable, the analysis is called

A. two variable regression analysis
B. multiple regression analysis
C. single regression analysis
D. none of the above
Answer» A. two variable regression analysis
46.

If we are studying the dependence of a variable on more than one explanatory variable, the analysis is called

A. two variable regression analysis
B. multiple regression analysis
C. single regression analysis
D. none of the above
Answer» B. multiple regression analysis
47.

The term “random” is synonym for the term

A. stochastic
B. variable
C. error
D. regression
Answer» A. stochastic
48.

If the data is collected at one point in time, it is called

A. time series data
B. cross section data
C. pooled data
D. none of the above
Answer» B. cross section data
49.

If the data is collected over a period of time, it is called

A. time series data
B. cross section data
C. pooled data
D. none of the above
Answer» A. time series data
50.

The combination of time series and cross sectional data is known as

A. pooled data
B. panel data
C. longitudinal data
D. none of the above
Answer» A. pooled data
51.

The set of all possible outcomes of an experiment or measurement is known as

A. population
B. census
C. sample
D. variable
Answer» A. population
52.

conditional mean of Y given X value is denoted as

A. con y
B. e(y/x)
C. prob (y/x)
D. e(x/y)
Answer» B. e(y/x)
53.

An expected value is the same as

A. average value
B. standard deviation
C. dispersion
D. none of the above
Answer» A. average value
54.

The locus of points conditional means of the dependent variable for the fixed values of the explanatory variables is

A. venn diagram
B. lorenz curve
C. probability curve
D. population regression curve
Answer» D. population regression curve
55.

The regression line or curve passes through

A. origin
B. vertical axis
C. horizontal axis
D. conditional means
Answer» D. conditional means
56.

E (Y/Xi) = f (Xi) is known as

A. population regression function
B. sample regression function
C. expected average
D. none of the above
Answer» A. population regression function
57.

In the regression function E(Y/Xi)=β1+β2Xi, regression coefficients are

A. y and x
B. y and β1
C. β1and β2 d β2 an
D. xi
Answer» C. β1and β2 d β2 an
58.

the regression function E(Y/Xi)=β1+β2Xi is a

A. linear regression function
B. sample regression function
C. non linear regression function
D. log linear regression function
Answer» A. linear regression function
59.

in the regression function E(Y/Xi)=β1+β2Xi , β1 is

A. intercept coefficient
B. slope coefficient
C. variable
D. average value
Answer» A. intercept coefficient
60.

in the regression function E(Y/Xi)=β1+β2Xi , β2 is

A. aintercept coefficient
B. slope coefficient
C. variable
D. average value
Answer» B. slope coefficient
61.

the regression function E(Y/Xi)=β1+β2Xi 2 is linear in

A. variables
B. parameters
C. coefficients
D. none of the above
Answer» B. parameters
62.

in the regression function E (Y⁄X ) = β + β X is linear in

A. variables
B. parameters
C. coefficients
D. none of the above
Answer» A. variables
63.

in the function Yi= β1+β2Xi+ui, the term ui refers to

A. variable
B. parameters
C. coefficient
D. stochastic error term
Answer» D. stochastic error term
64.

in the function Yi= β1+β2Xi+ui, the term ui is ------- in nature

A. random
B. nonsystematic
C. all of the above
D. none of the above
Answer» C. all of the above
65.

“the descriptions be kept as simple as possible until proved inadequate” corresponds to

A. occam’s razor
B. index numbers
C. regression
D. correlation
Answer» A. occam’s razor
66.

The rule or formula that tells how to estimate the population parameter from the sample information is called

A. estimate
B. estimator
C. population
D. coefficient
Answer» B. estimator
67.

The function Y = β + β X is a

A. sample regression function
B. non linear regression function
C. log linear regression function
D. population regression function
Answer» A. sample regression function
68.

the most popular method of constructing sample regression function in the regression analysis is

A. method of ols
B. generalised squares
C. ordinary regression method
D. none of the above
Answer» A. method of ols
69.

the method of ordinary least squares is attributed to

A. pearson
B. pashee
C. fisher
D. carl friedrich gauss
Answer» D. carl friedrich gauss
70.

If each estimator provides only a single value of the relevant population parameter, it is

A. point estimator
B. interval estimator
C. class estimator
D. single estimator
Answer» A. point estimator
71.

If each estimator provides a range of possible values relevant population parameter, it is

A. point estimator
B. interval estimator
C. class estimator
D. single estimator
Answer» B. interval estimator
72.

The sample regression line obtained through the OLS method passes through

A. sample means
B. sample standard deviation
C. origin
D. vertical axis
Answer» A. sample means
73.

The Gaussian standard classical linear regression model assumes------- assumptions

A. seven
B. ten
C. five
D. eight
Answer» B. ten
74.

Which is the assumption of Gaussian standard classical linear regression model

A. linear regression model
B. x values are fixed
C. zero mean values for disturbances
D. all of the above
Answer» D. all of the above
75.

The numerical value obtained by the estimator in an application is known as

A. estimate
B. estimator
C. population
D. coefficient
Answer» A. estimate
76.

Homoscedasticity means------ for disturbances

A. equal mean
B. equal variance
C. zero mean
D. none of the above
Answer» B. equal variance
77.

The literal meaning of econometrics is

A. estimation
B. economic measurement
C. forecasting
D. testing
Answer» B. economic measurement
78.

Economic theory makes statements that are mostly

A. quantitative
B. qualitative
C. positive
D. none of the above
Answer» B. qualitative
79.

In the function, Q= α+βP, the intercept coefficient is

A. α
B. β
C. p
D. q
Answer» B. β
80.

Heteroscedasticity implies

A. equal spread
B. unequal spread
C. equal mean
D. equal variance
Answer» B. unequal spread
81.

Given any two X values the classical linear regression model assumes the correlation between the disturbances as

A. one
B. infinity
C. negative
D. zero
Answer» D. zero
82.

which is the dependent variable in the Keynesian consumption function

A. income
B. consumption
C. price
D. output
Answer» B. consumption
83.

in the regression context, the OLS estimators are BLUE according to

A. central limit theorem
B. gauss markov theorem
C. young theorem
D. fisher’s theorem
Answer» B. gauss markov theorem
84.

The summary measure used to measure the goodness of fit of a regression line

A. coefficient of determination
B. coefficient of variation
C. standard error d standar
D. deviation
Answer» A. coefficient of determination
85.

The numerical value of coefficient of determination lies between

A. -1 and 1
B. 0 and 1
C. -∞ to +∞
D. -∞ to 1
Answer» B. 0 and 1
86.

The classical theory of statistical inference consists of

A. estimation and hypothesis testing
B. regression and correlation
C. averages and dispersion
D. none of the above
Answer» A. estimation and hypothesis testing
87.

The rejecting of a true hypothesis is called

A. type i error
B. type ii error
C. standard error
D. point estimation
Answer» A. type i error
88.

Which of the following is used to measure the degree of association between two variables

A. coefficient of determination
B. coefficient of correlation
C. standard error d standar
D. deviation
Answer» B. coefficient of correlation
89.

The accepting of a false hypothesis is called

A. type i error
B. type ii error
C. standard error
D. point estimation
Answer» B. type ii error
90.

The larger the standard error, the ----- the width of the confidence interval

A. smaller
B. larger
C. infinity
D. cannot calculate
Answer» B. larger
91.

-β represents:

A. Diminishing returns to scale
B. Increasing returns to scale
C. Constant returns to scale
D. None of the above
Answer» C. Constant returns to scale
92.

_____ is the best criteria to judge the validity of a model :

A. Assumptions
B. Information it provides
C. Its simplicity
D. predictive power
Answer» D. predictive power
93.

The given function f (x) = ax + b, is an example of ____ function:

A. quadratic
B. polynomial
C. linear
D. rational
Answer» C. linear
94.

The given function f (x) = ax2 + bx + c , is an example of ____ function:

A. quadratic
B. polynomial
C. linear
D. rational
Answer» A. quadratic
95.

For a utility function u = xy + 3x + 4y, marginal utility of good x is:

A. xy + 3x + 4y
B. y + 3
C. x + 4
D. y + 3x
Answer» B. y + 3
96.

Given a consumption function C = 250 + 0.75Yd, autonomous consumption is ____

A. 0.75
B. 0
C. 250
D. -0.75
Answer» C. 250
97.

For a total cost function TC = 1.5Q2 + 4Q + 46, MC is :

A. 1.5Q + 4 +
B. 1.5Q + 4
C. 1.5Q
D. 4Q + 46
Answer» A. 1.5Q + 4 +
98.

Abstraction from reality is made based on :

A. assumptions
B. prediction
C. theory
D. hypothesis
Answer» A. assumptions
99.

____ is a simplified description of reality, designed to yield hypothesis about economic behaviour that can be tested.

A. theory
B. postulate
C. proposition
D. economic model
Answer» B. postulate
100.

____ models are mathematical models designed to be used with data.

A. Empirical
B. Visual
C. Mathematical
D. Simulation
Answer» A. Empirical
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