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) .
| 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 | |
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