Basic

econometrics questions and answers

Econometrics test questions and answers. Basic econometrics questions and answers pdf. Basic econometrics exam questions and answers. What is basic econometrics. Basic econometrics syllabus.

Econometrics interview questions and answers.

Browse: All subjects Business & Economics Economics Learn about: Online Resource Centres VLE/CMS Content Test Banks From our catalogue pages: Find a textbook Find your local rep Recent QuizQuiz on FungiAttempt this quiz nowMore quizzes Econometrics Method, Econometrics Fundamentals, Econometrics Questions, Econometrics Multiple
Choice Questions, Econometrics Objective Questions, Econometrics MCQ. What is econometrics? ‘Econometrics’ is a method which uses mathematical an statistical ways of analysis to find economic relationship. Read MCQ related with econometrics. Why is it used? Who is the father of econometrics? Ragnar Frisch is the father of econometrics. How
the Econometric Models are estimated? The models are estimated by using some well known software programmes such as Stata, SPSS, SAS and R. Full Form SPSS: Statistical Package for the Social Science. Full Form SAS: Statistical Analysis System. 1. It can be single equation regression model or,2. It may consist a simultaneous equations. The
major importance is economic forcasting. It helps in decision taking. It is considered as the most difficult topic of economics.
1. Selection of hypothesis.2. Define objectives.3. Make models.4. Estimation of variables.5. Data analysis.6. Validation. Also read: Answer Key After Each 10th MCQ Question 01. The quantitative analysis (econometrics) is based on..? (a). Concurrent development of theory.(b). Concurrent development of observation.(c). Both a and b.(d). Concurrent
development of theory and observation, and these are related by appropriate methods of inference. *New: Buy topic or syllabus-wise MCQ and notes. Learn more.. See answer Question 02. The first known use of the term ‘econometrics’ was by given by..? (a). Adolph Wagner.(b). Paweł Ciompa.(c). John Maynard.(d). Walter Eucken. See answer
Question 03.
The founding fathers of econometric are..?
(a). Helen H. Jensen and Jayson Lusk.(b). David Gilberman and James Shortle.(c). Jan Tinbergen and Ragnar Frisch.(d). None of the above. See answer Question 04. The term econometrics was coined by (in modern sense)..?
(a). Ragnar Frisch.(b). James Shortle.(c). Jayson Lusk.(d). David Gilberman. See answer Question 05. Econometrics is..? (a). Statistical analysis of economic relationship.(b). Mathematical analysis of economic relationship.(c).

Both a and b.(d). None of the above. See answer Also read: IBPS AFO Multiple Choice Questions Question 06. Why do firm owners use econometric?(a). To aid decisions on prices.(b). To aid decision on inventory.(c). To aid decision on production.(d).
All of the above. See answer Question 07. Which is not a phenomena studied under econometrics? (a). Consumption pattern.(b). Consumer behavior.(c).

Production and cost.(d). Supply. See answer Question 08.

An economist mainly uses econometrics for..? (a). Studying relationship between goods and prices.(b). Studying relationship between production and price.(c). Studying relationship between demand and supply.(d). Studying relationship between economic variables. See answer Question 09. Which is a basic tool of econometric..? (a). Simple linear
regression model.(b). Multi level linear regression model.(c). Multiple linear regression model.(d). General linear model. See answer Question 10. What is BLUE..? (a). Best Linear Unbiased Estimator.(b). Biased Linear Unit Estimator.(c). Bohr’s Linear Unbiased Estimator.(d). Best Linear Unit Estimator. See answer Question 11. Unbiasedness,
efficiency and consistency are … properties of estimators? (a).
Sociological.(b).
Statistical.(c). Mathematical.(d). All of the above. See answer Question 12. An estimator is unbiased if..? (a).
Its expected value is the true value of the parameter.(b). Its expected value is not the true value of the parameter.(c). Its unexpected value is the true value of the parameter(d). None of the above. See answer Question 13. An estimator is consistent if..?

(a). It converges to the true value as the sample size remains same.(b). It converges to the true value as the sample size gets smaller.(c). It converges to the true value as the sample size gets larger.(d). Any of the option. See answer Question 14. An estimator is efficient if..? (a). If the estimator has higher standard error than other unbiased estimators
for a given sample size.(b). If the estimator has lower standard error than other biased estimators for a given sample size. (c). Both a and b.(d). If the estimator has lower standard error than other unbiased estimators for a given sample size. See answer Question 15. The the most used method for estimation in econometrics is..? (a). OLS.(b). GLS.(c).
MLE.(d). GMM. See answer Also read: BHU UET Multiple Choice Questions Question 16. Work in estimating supply functions has been confined mostly to..? (a). Fisheries.(b). Agriculture.(c). Veterinary.(d). All of the above. See answer Question 17. What is the problem in work in estimating functions..? (a). Distinguish the effects of external factors.(b).
Distinguish the effects of internal factors.(c).
Both.(d).
None. See answer Question 18. The applied econometric uses …. and …. for assessing economic theories? (a). Practical econometrics and real-world data.(b). Theoretical econometrics and real-world data.(c). Both a and b.(d). None of the above. See answer Question 19. Which type of approach econometric is..?
(a). Differing.(b). Non-differing.(c).
Both.(d). None of the above. See answer Question 20. Which is a distinguished differing approach in econometrics? (a). Cowles commission.(b). Vector autoregression.(c). LSE.(d).
All of the above. See answer Question 21. Following are the methodology of econometrics..? (a). Experimental economics.(b).
Instrumental variables.(c). Structural econometrics.(d). All of the above. See answer Question 22. The three key ingredients of econometrics are..? (a). Economic theory.(b). Economic data.(c). Statistical method.(d). All of the above. See answer Question 23. The main importance of econometrics is..? (a). Forecasting.(b). Data analysis.(c). Data
gathering.(d). All of the above. See answer Question 24. Apart from regression model, econometrics relies on..? (a).
Null hypothesis.(b). Data testing.(c). Data interpretation.(d). All the above. See answer Question 25. Who have received Noble Prize in the field of economic….? (a). Ragnar Frisch.(b). Lawrence Klein.(c). Simon Kuznets.(d). All of the above See answer Question 26. Which is a branch of econometrics?(a). Theoretical econometrics.(b). Applied
econometrics.(c). Both a and b.(d). No branches. See answer Also read: JRF Multiple Choice Questions Agricultural Prices and Commodity Market Analysis John N. Ferris Applied Econometrics Time Series Walter Enders Businesses Forecasting With CD J. Holton Wilson and Barry Keating Basic Econometrics Damodar N.
Gujarati Econometrics Analysis William H. Greene Cost-Benefit Analysis: Concepts and Practice Anthony E. Boardam Essentials of Econometrics Damodar Gujarati Introductory Econometrics: A Modern Approach Jeffrey M. Woodridge Mostly Harmless Econometrics: An Empiricist’s Companion Joshua D. Angrist Economic Development Michael P.
Todaro Introductory Econometrics for Finance Chris Brooks Introduction to Econometrics James H. Stock and Mark W. Watson Econometric Models and Economic Forecasts – Text Only Robert S. Pindyck and Daniel L. Rubinfeld Economic Decision Analysis W. Fabrycky D. Verma and G. J.
Thuesen Forecasting: Methods and Applications Spyros Makridakis Fundamental Methods of Mathematical Economics Alpha C. Chiang and Kevin Wainwright RECENT POSTS 1.
Two events, A and B, are said to be mutually exclusive if: A. P(A | B) = 1 B. P(B | A) = 1 C. P(A and B) = 1 D. P(A and B) = 0 Answer: D.P(A and B) = 0 2. A Type I error occurs when we: A. reject a false null hypothesis B. reject a true null hypothesis C. do not reject a false null hypothesis D. do not reject a true null hypothesis Answer: B.reject a true
null hypothesis 3. What is the meaning of the term “heteroscedasticity”? A. The variance of the errors is not constant B. The variance of the dependent variable is not constant C. The errors are not linearly independent of one another D. The errors have non- zero mean Answer: A.The variance of the errors is not constant 4. What would be then
consequences for the OLSestimator if heteroscedasticity is present in a regression model but ignored? A. It will be ignored B. It will be inconsistent C. It will be inefficient D. All of a),c), b) will be true. Answer: C.It will be inefficient 5. Which one of the following is NOT a plausible remedy for near multicollinearity? A. Use principal components analysis
B. Drop one of the collinear variables C. Use a longer run of data D. Take logarithems of each of the variables Answer: D.Take logarithems of each of the variables 6. What will be the properties of the OLS estimator in the presence of multicollinearity? A. It will be consistent unbiased and efficient B. It will be consistent and unbiased but notefficient C.
It will be consistent but not unbiased D. It will not be consistent Answer: A.It will be consistent unbiased and efficient 7. A sure way of removing multicollinearity from the model is to A. Work with panel data B. Drop variables that cause multicollinearity in the first place C.
Transform the variables by first differencing them D. Obtaining additional sample data Answer: B.Drop variables that cause multicollinearity in the first place 8. Autocorrelation is generally occurred in A. Cross-section data B. Time series data C. Pooled data D. None of the above Answer: B.Time series data 9. The regression coefficient estimated in
the presence of autocorrelation in the sample data are NOT A. Unbiased estimators B. Consistent estimators C. Efficient estimators D. Linear estimators Answer: C.Efficient estimators 10. In the regression function y=α + βx +c A.
x is the regressor B. Y is the regressor C. x is the regressand D. none of these Answer: A.x is the regressor 11. The coefficient of determination, r2 shows A. Proportion of the variation in the dependent variable Y is explained by the independent variable X B. Proportion of the variation in the dependent variable X is explained by the independent
variable Y C. Proportion of the variation in ui is explained by the independent variable X D. Both a and c Answer: A.Proportion of the variation in the dependent variable Y is explained by the independent variable X 12. BLUE is A. Best Linear Unbiased Estimator B. Best Linear Unconditional Estimator C. Basic Linear UnconditionalEstimator D. Both b
and c Answer: A.Best Linear Unbiased Estimator 13. Data on one or variables collected at a given point of time A.
Panel Data B. Time series data C. Pooled data D. Cross-section data Answer: D.Cross-section data 14. The violation of the assumption of constant variance of the residual is known as A. Heteroscedasticity B. Multicollinearity C. Homoscedasticity D. Autocorrelation Answer: A.Heteroscedasticity 15. Formula of coefficient determination is A. 1+RSS/TSS
B. 1-RSS/ESS C. 1-RSS/TSS D. 1*RSS/TSS Answer: C.1-RSS/TSS 16. In confidence interval estimation, α = 5%, this means that this interval includes the true β withprobability of A. 0.50% B. 50% C. 5% D. 95% Answer: D.95% 17. Consider a large population with a mean of 160 and a standard deviation of 25. A random sample of size 64 is taken from
this population. What is the standard deviation of the sample mean? A. 3.125 B. 2.5 C. 3.75 D. 5.625 Answer: A.3.125 18. In the case of multicollinearity which test will be insignificant? A. f test B. t test C. both a and b D. both are significant Answer: B.t test 19. Hetroscedasticity is generally occurred in A. Cross-section data B. Time series data C.
Pooled data D. None of the above Answer: A.Cross-section data 20. When there are both qualitative and quantitative variables are there in the model, A. ANOVA B.
ANCOVA C. CHI SQUARE D. All of the above Answer: B.ANCOVA 21. When is the problem of dummy variable trap occur? A. When we take dummy variables more than the categories B. When we take dummy variables less than the categories C. When we take dummy variables equal to the no of categories D. Both a and c Answer: D.Both a and c 22.
Durbin Watson test is associated with: A. Heteroscedasticity B.
Multicollinearity C. Autocorrelation D. Both a and c Answer: C.Autocorrelation 23. All are the types of specification errors EXCEPT: A.
Omission of relevant variable B. Inclusion of unnecessary variable C. errors of measurement D. over identified Answer: D.over identified 24. White’s test is used for the detection of ———–? A. multicollinearity B. hetroscedasticity C. Autocorrelation D. None of the above Answer: B.hetroscedasticity 25.
Which one is not the assumption of OLS? A. Perfect Multicollinearity B.
zero covariance between error terms C. equal variance of disturbances D.
Mean value of disturbances is Answer: A.Perfect Multicollinearity 26. Scaling a dependent variable in log form in the log-lin model will———— A. change both the intercept and slope B. change the slope but not the intercept C. change the intercept but not the slope D.
intercept and slope both remains unchanged Answer: C.change the intercept but not the slope 27. Individual respondents, focus groups, and panels of respondents are categorized as A. Primary Data Sources B. Secondary Data Sources C. Itemized Data Sources D. Pointed Data Sources Answer: A.Primary Data Sources 28. The scale applied in
statistics which imparts a difference of magnitude and proportions is considered as A. Exponential Scale B. Goodness Scale C. Ratio Scale D. Satisfactory Scale Answer: C.Ratio Scale 29. Homogeneity of three or more population correlation coefficients can be tested by A. F-test B. t-test C. Z-test D. χ2-test Answer: D.χ2-test 30. The successive trials
are with replacement in A. Hypergeometric distribution B. Binomial distribution C. Geometric distribution D. None of these Answer: B.Binomial distribution 31.
Probability of occurrence of an event lies between A. −1 and 0 B. −1 and 1 C. 1 and 0 D. 100 and -100 Answer: C.1 and 0 32. A discrete probability distribution may be represented by A. Graph B. Table C. Mathematical Equation D. All of These Answer: D.All of These 33. Student’s t-distribution curve is symmetrical about mean, it means that A. Odd
Order Moments are Zero B. Even Order Moments are Zero C. Both (A) and (B) D. None of (A) and (B) Answer: A.Odd Order Moments are Zero 34. Which one is equal to explained variation divided by total variation? A. Sum of squares due to regression B. Coefficient of Determination C. Standard Error of Estimate D. Coefficient of Correlation Answer:
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