McqMate
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 |
Done Reading?