McqMate
| 101. |
A ______ is a value that may change within the scope of a given problem or set of operations |
| A. | constant |
| B. | variable |
| C. | function |
| D. | exponent |
| Answer» B. variable | |
| 102. |
__________ variable is a factor that is not itself under study but affects the measurement of the study variables or the examination of their relationships. |
| A. | exogenous |
| B. | endogenous |
| C. | extraneous |
| D. | dependent |
| Answer» C. extraneous | |
| 103. |
An index number is used: |
| A. | to measure changes in quantity |
| B. | to measure changes in demand |
| C. | to measure changes in a variable over time |
| D. | to measure changes in price |
| Answer» C. to measure changes in a variable over time | |
| 104. |
The ratio of a new price to the base year price is called the: |
| A. | price absolute |
| B. | price decrease |
| C. | price increase |
| D. | price relative |
| Answer» D. price relative | |
| 105. |
A simple aggregate quantity index is used to: |
| A. | measure the change in price of a product |
| B. | measure the change in quantity of a product |
| C. | measure the overall change in quantity of a range of products |
| D. | measure the overall change in price of a range of products |
| Answer» D. measure the overall change in price of a range of products | |
| 106. |
A simple aggregate price index: |
| A. | ignores relative quantities |
| B. | compares relative quantities to relative prices |
| C. | considers relative quantities |
| D. | compares absolute prices to absolute quantities |
| Answer» A. ignores relative quantities | |
| 107. |
This index measures the change from month to month in the cost of a representative ‘basket’ of goods and services of the type bought by a typical household |
| A. | paasche price index |
| B. | retail price index |
| C. | laspeyres price index |
| D. | financial times index |
| Answer» B. retail price index | |
| 108. |
The Laspeyres and Paasche index are examples of: |
| A. | weighted price index only |
| B. | aggregate index numbers |
| C. | weighted index numbers |
| D. | weighted quantity index only |
| Answer» C. weighted index numbers | |
| 109. |
The Laspeyres price index: |
| A. | regards the current year quantities as fixed |
| B. | regards the base year quantities as fixed |
| C. | regards the base year prices as fixed |
| D. | regards the current quality as fixed |
| Answer» B. regards the base year quantities as fixed | |
| 110. |
A scaling factor is used to: |
| A. | change a simple index to a weighted index |
| B. | convert the paasche index to a laspeyres index |
| C. | change an aggregate index to a weighted index |
| D. | change the base year |
| Answer» D. change the base year | |
| 111. |
The distinctive feature of the ______ index is that it uses a group of commodities purchased in the base period as the basis for comparison |
| A. | paasche’s |
| B. | laspeyres |
| C. | fisher’s |
| D. | dorbish-bowley |
| Answer» B. laspeyres | |
| 112. |
________was developed to measure changes in the cost of living in order to determine the wage increases necessary to maintain a constant standard of living. |
| A. | price index |
| B. | sensex |
| C. | correlation |
| D. | regression |
| Answer» A. price index | |
| 113. |
____________ measure of living costs based on changes in retail prices |
| A. | correlation |
| B. | whole sale price index |
| C. | consumer price index |
| D. | regression |
| Answer» C. consumer price index | |
| 114. |
Paasche index was developed by ______economist Hermann Paasche for measuring current price or quantity levels relative to those of a selected base period |
| A. | american |
| B. | british |
| C. | australian |
| D. | german |
| Answer» D. german | |
| 115. |
The ratio-moving-average procedure can be used to deseasonalize data |
| A. | true |
| B. | false |
| C. | either of the above |
| D. | none of the above |
| Answer» A. true | |
| 116. |
The weighing factor, used in the exponential smoothing method, is always a number between ______ |
| A. | zero and ten |
| B. | five and ten |
| C. | zero and one |
| D. | zero and negative one |
| Answer» C. zero and one | |
| 117. |
A moving average of a time series is the value around which a series moves over time. |
| A. | true |
| B. | false |
| C. | either of the above |
| D. | none of the above |
| Answer» B. false | |
| 118. |
In a time series analysis it is often important to analyze seasonal variations |
| A. | true |
| B. | false |
| C. | either of the above |
| D. | none of the above |
| Answer» A. true | |
| 119. |
The index number for the price of a good in 2002 was 142 and in 2003, it was 148.5, on a base year of 1994. What is the percent increase in price of gasoline from 2002 to 2003 |
| A. | 4.377% |
| B. | 4.577% |
| C. | 95.62% |
| D. | 6.5% |
| Answer» B. 4.577% | |
| 120. |
Which one of the following is not a component of the multiplicative time series model? |
| A. | trend |
| B. | irregular variation |
| C. | regression trend |
| D. | seasonality |
| Answer» C. regression trend | |
| 121. |
Which of the following is not a component of the multiplicative time series model? |
| A. | trend analysis |
| B. | seasonal variation |
| C. | cyclical variation |
| D. | regressive variation |
| Answer» D. regressive variation | |
| 122. |
The time series component that indicates a steady increase or decrease over time is known as a ____________ |
| A. | order |
| B. | pattern |
| C. | trend |
| D. | seasonality |
| Answer» C. trend | |
| 123. |
A pattern in a times-series model that occurs over a duration of more than a year is called a ___________ variation |
| A. | trend |
| B. | seasonal |
| C. | cyclical |
| D. | regressive |
| Answer» C. cyclical | |
| 124. |
Which two components are smoothed out by the moving average |
| A. | seasonality and irregular |
| B. | cyclicality; seasonality |
| C. | variability: randomality |
| D. | randomality; seasonality |
| Answer» A. seasonality and irregular | |
| 125. |
If a value is missing in a time series we can do one of the following |
| A. | just copy the previous value |
| B. | estimate it as an average between two neighbouring values |
| C. | take the overall mean as the best estimate of it |
| D. | ignore it |
| Answer» B. estimate it as an average between two neighbouring values | |
| 126. |
One of the classifications of time series is that they can be either |
| A. | categorical or ordinal |
| B. | stationary or non-stationary |
| C. | inflationary or non-inflationary |
| D. | increasing or decreasing |
| Answer» B. stationary or non-stationary | |
| 127. |
Another name for the regression method is |
| A. | linear method |
| B. | univariate method |
| C. | time series method |
| D. | causal method |
| Answer» D. causal method | |
| 128. |
Exponential smoothing is |
| A. | a method to use number exponents to smooth the time series |
| B. | one of the forecasting methods |
| C. | a method of testing linearity |
| D. | a method to find elasticity |
| Answer» B. one of the forecasting methods | |
| 129. |
“Sensex” is related to |
| A. | bse |
| B. | nse |
| C. | rbi |
| D. | sebi |
| Answer» A. bse | |
| 130. |
Which of the following is not one of the four types of variation that is estimated in time- series analysis |
| A. | predictable |
| B. | trend |
| C. | cyclical |
| D. | irregular |
| Answer» A. predictable | |
| 131. |
The cyclical component of time-series data is usually estimated using |
| A. | linear regression analysis |
| B. | moving averages |
| C. | exponential smoothing |
| D. | qualitative methods |
| Answer» D. qualitative methods | |
| 132. |
In time-series analysis, which source of variation can be estimated by the ratio-to-trend method |
| A. | cyclical |
| B. | trend |
| C. | seasonal |
| D. | irregular |
| Answer» C. seasonal | |
| 133. |
If regression analysis is used to estimate the linear relationship between the natural logarithm of the variable to be forecast and time, then the slope estimate is equal to |
| A. | the linear trend |
| B. | the natural logarithm of the rate of growth |
| C. | the natural logarithm of one plus the rate of growth |
| D. | the natural logarithm of the square root of the rate of growth |
| Answer» C. the natural logarithm of one plus the rate of growth | |
| 134. |
The use of a smoothing technique is appropriate when |
| A. | random behaviour is the primary source of variation |
| B. | seasonality is present |
| C. | data exhibit a strong trend |
| D. | all of the above are correct |
| Answer» A. random behaviour is the primary source of variation | |
| 135. |
Barometric methods are used to forecast |
| A. | seasonal variation |
| B. | secular trend |
| C. | cyclical variation |
| D. | irregular variation |
| Answer» C. cyclical variation | |
| 136. |
A single-equation econometric model of the demand for a product is a ________ equation in which the quantity demanded of the product is an ________ variable |
| A. | structural, exogenous |
| B. | structural, endogenous |
| C. | definitional, exogenous |
| D. | definitional, endogenous |
| Answer» B. structural, endogenous | |
| 137. |
Econometric forecasts require |
| A. | accurate estimates of the coefficients of structural equations |
| B. | forecasts of future values of exogenous variables |
| C. | appropriate theoretical models |
| D. | all of the above |
| Answer» D. all of the above | |
| 138. |
Laspeyre's formula does not obey |
| A. | factor reversal test |
| B. | time reversal test |
| C. | circular test |
| D. | none |
| Answer» B. time reversal test | |
| 139. |
P10 is the index for time |
| A. | 1 on 0 |
| B. | 0 on 1 |
| C. | 1 on 1 |
| D. | b) 0 on 0 |
| Answer» B. 0 on 1 | |
| 140. |
Fisher's Ideal Formula for calculating index nos. satisfies the________ tests |
| A. | units test |
| B. | factor reversal test |
| C. | both a and b |
| D. | do not satisfy any test |
| Answer» C. both a and b | |
| 141. |
_______________ is particularly suitable for the construction of index nos |
| A. | harmonic mean |
| B. | arithmetic mean |
| C. | geometric mean |
| D. | none |
| Answer» C. geometric mean | |
| 142. |
The________ of group indices given the General Index |
| A. | harmonic mean |
| B. | arithmetic mean |
| C. | geometric mean |
| D. | none of the above |
| Answer» B. arithmetic mean | |
| 143. |
In computing Index Numbers, ___________ is concerned with the measurement of price changes over a period of years, when it is desirable to shift the base |
| A. | unit test |
| B. | circular test |
| C. | time reversal test |
| D. | none of the above |
| Answer» B. circular test | |
| 144. |
Index nos. are often constructed from the |
| A. | frequency |
| B. | class |
| C. | sample |
| D. | none |
| Answer» C. sample | |
| 145. |
The formula should be independent of the unit in which or for which price and quantities are quoted in |
| A. | unit test |
| B. | time reversal test |
| C. | factor reversal test |
| D. | none of the above |
| Answer» A. unit test | |
| 146. |
Factor Reversal test is satisfied by |
| A. | fisher\s ideal index |
| B. | laspeyres index |
| C. | paasches index |
| D. | none of the above |
| Answer» A. fisher\s ideal index | |
| 147. |
The index no. is a special type of average |
| A. | false |
| B. | true |
| C. | both |
| D. | none |
| Answer» B. true | |
| 148. |
Laspeyre's method and Paasche's method do not satisfy |
| A. | unit test |
| B. | time reversal test |
| C. | factor reversal test |
| D. | none of the above |
| Answer» B. time reversal test | |
| 149. |
We use price index numbers |
| A. | to measure and compare prices |
| B. | to measure prices |
| C. | to compare prices |
| D. | none of the above |
| Answer» A. to measure and compare prices | |
| 150. |
Simple aggregate of quantities is a type of |
| A. | quantity control |
| B. | quantity indices |
| C. | both |
| D. | none of the above |
| Answer» B. quantity indices | |
| 151. |
The test of shifting the base is called |
| A. | unit test |
| B. | time reversal test |
| C. | circular test |
| D. | none of the above |
| Answer» C. circular test | |
| 152. |
Price relative is equal to |
| A. | × |
| B. | × |
| C. | ℎ × 100 |
| D. | ℎ × 100 |
| Answer» A. × | |
| 153. |
The price relative is a price index that is determined by |
| A. | (price in period t/base period price)(100) |
| B. | (base period price/price in period t)(100) |
| C. | (price in period t + base period price)(100) |
| D. | none of the above |
| Answer» A. (price in period t/base period price)(100) | |
| 154. |
A composite price index based on the prices of a group of items is known as the |
| A. | laspeyres index |
| B. | paasche index |
| C. | aggregate price index |
| D. | consumer price index |
| Answer» C. aggregate price index | |
| 155. |
A weighted aggregate price index where the weight for each item is its base period quantity is known as the |
| A. | paasche index |
| B. | consumer price index |
| C. | producer price index |
| D. | laspeyres index |
| Answer» D. laspeyres index | |
| 156. |
A monthly price index that uses the price changes in consumer goods and services for measuring the changes in consumer prices over time is known as the |
| A. | paasche index |
| B. | consumer price index |
| C. | producer price index |
| D. | laspeyres index |
| Answer» B. consumer price index | |
| 157. |
A monthly price index that measures the changes in the prices of goods sold in a primary market is known as the |
| A. | consumer price index |
| B. | quantity index |
| C. | index of industrial production |
| D. | producer price index |
| Answer» D. producer price index | |
| 158. |
A composite price index where the prices of the items in the composite are weighted by their relative importance is known as the |
| A. | price relative |
| B. | weighted aggregate price index |
| C. | consumer price index |
| D. | none of the above |
| Answer» B. weighted aggregate price index | |
| 159. |
An index that is designed to measure changes in quantities over time is known as the |
| A. | time index |
| B. | quantity index |
| C. | paasche index |
| D. | change index |
| Answer» B. quantity index | |
| 160. |
A quantity index that is designed to measure changes in physical volume or production levels of industrial goods over time is known as the |
| A. | physical volume index |
| B. | time index |
| C. | index of industrial production and capacity utilization |
| D. | none of the above |
| Answer» C. index of industrial production and capacity utilization | |
| 161. |
The term econometrics was coined by |
| A. | marsahll |
| B. | pawel |
| C. | ragnar frisch |
| D. | pareto |
| Answer» C. ragnar frisch | |
| 162. |
Econometrics model is ___________model |
| A. | exogenous |
| B. | endogenous |
| C. | identified |
| D. | either exogenous or endogenous |
| Answer» D. either exogenous or endogenous | |
| 163. |
The starting point of econometric analysis is |
| A. | model specification |
| B. | formulation of alternative hypothesis |
| C. | formulation of null hypothesis |
| D. | collection of data |
| Answer» C. formulation of null hypothesis | |
| 164. |
Regressor refers to |
| A. | independent variable |
| B. | dependent variable |
| C. | error term |
| D. | dummy variable |
| Answer» A. independent variable | |
| 165. |
In perfect linear model, we assume that regression coefficient remains _________ |
| A. | variable until some point |
| B. | variable through out |
| C. | constant to some point |
| D. | constant through out |
| Answer» D. constant through out | |
| 166. |
In econometric models, t+1 indicates, |
| A. | net addition |
| B. | current value with some fluctuations |
| C. | expected value |
| D. | none of these |
| Answer» C. expected value | |
| 167. |
When a north Indian town data and south Indian data are totalled, it leads to the problem of _________aggregation. |
| A. | national |
| B. | regional |
| C. | spatial |
| D. | heterogeneous |
| Answer» C. spatial | |
| 168. |
Among the following, which is an assumption of OLS |
| A. | the explanatory variables are measurable |
| B. | the relationship being estimated is identified |
| C. | error term and independent variables are related |
| D. | error term and independent variables are linearly related |
| Answer» B. the relationship being estimated is identified | |
| 169. |
The property of average or expected value is equal to true value of the coefficient is the property of |
| A. | zero variance |
| B. | minimum variance |
| C. | zero mean |
| D. | minimum mean |
| Answer» B. minimum variance | |
| 170. |
The power of a statistical test is defined as, |
| A. | 1−β |
| B. | 1 + β |
| C. | 1 |
| D. | β |
| Answer» A. 1−β | |
| 171. |
Standard error is defined as, |
| A. | standard deviation of the sampling distribution |
| B. | standard deviation of the population |
| C. | variance of the sampling distribution |
| D. | variance of the population |
| Answer» A. standard deviation of the sampling distribution | |
| 172. |
Student t test is preferred in the case of a, |
| A. | large sample |
| B. | small sample |
| C. | when sample is below 50 |
| D. | when sample is above 50 |
| Answer» B. small sample | |
| 173. |
Cobb Douglas production function is an example of |
| A. | linear model |
| B. | double log model |
| C. | lin log model |
| D. | log lin model |
| Answer» B. double log model | |
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