# 160+ Mathematical Economics Solved MCQs

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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.

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

A. always
B. sometimes
C. never
D. cannot say
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
5.

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

A. alinear trend model
B. lin log model
C. log lin model
D. none of the above
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
9.

## The first step in traditional econometric methodology is

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

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

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

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

A. α
B. β
C. p
D. q
13.

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

A. income
B. consumption expenditure
C. output
D. price
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
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
16.

A. β1
B. x
C. y
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
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
19.

A. β1
B. x
C. y
D. β2
20.

A. β1
B. x
C. y
D. β2
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
22.

A. always
B. sometimes
C. never
D. cannot say
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
25.

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

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

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

A. non linear
B. linear
C. polynomial
28.

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

A. disturbance term
B. intercept
C. slope
D. dependent 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
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
32.

## the term regression was first introduced by

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

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

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

A. non linear regression model
B. linear regression model
D. none of the above
35.

A. β1
B. . x
C. y
D. β2
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. regression
B. causation
C. error
D. random
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
39.

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

A. income
B. consumption expenditure
C. output
D. price
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
42.

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

## the law of universal regression was first introduced by

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

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

A. regression
B. correlation
C. hypothesis testing
D. estimation
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
47.

A. stochastic
B. variable
C. error
D. regression
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
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
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
51.

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

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

## An expected value is the same as

A. average value
B. standard deviation
C. dispersion
D. none of the above
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
55.

## The regression line or curve passes through

A. origin
B. vertical axis
C. horizontal axis
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
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
59.

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

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

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

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

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

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

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

A. variable
B. parameters
C. coefficient
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.

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

A. estimate
B. estimator
C. population
D. coefficient
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
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
69.

## the method of ordinary least squares is attributed to

A. pearson
B. pashee
C. fisher
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
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
72.

## The sample regression line obtained through the OLS method passes through

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

A. seven
B. ten
C. five
D. eight
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.

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

## Homoscedasticity means------ for disturbances

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

## The literal meaning of econometrics is

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

## Economic theory makes statements that are mostly

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

A. α
B. β
C. p
D. q
80.

## Heteroscedasticity implies

C. equal mean
D. equal variance
81.

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

A. income
B. consumption
C. price
D. output
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
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
85.

A. -1 and 1
B. 0 and 1
C. -∞ to +∞
D. -∞ to 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
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
89.

## The accepting of a false hypothesis is called

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

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

A. smaller
B. larger
C. infinity
D. cannot calculate
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
93.

B. polynomial
C. linear
D. rational
94.

B. polynomial
C. linear
D. rational
95.

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

A. 0.75
B. 0
C. 250
D. -0.75
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.

A. assumptions
B. prediction
C. theory
D. hypothesis
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
100.

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