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160+ Mathematical Economics Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Economics (BA Economics) .

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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