Test Bank for Principles of Econometrics, 5th Edition Hill (All Chapters included)
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Course
International Economics
Institution
International Economics
Complete Test Bank for Principles of Econometrics, 5th Edition by Hill, Griffiths, Lim ; ISBN13: 9781119320944.....(Full Chapters included Chapter 1 to 16)....1 An Introduction to Econometrics
2 The Simple Linear Regression Model
3 Interval Estimation and Hypothesis Testing
4 Prediction, Goodnes...
Complete Chapters Test Bank
are included (Ch 1 to 16)
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** All Chapters included
,File: Ch01, Chapter 1, An Introduction to Econometrics
Multiple Choice
1. Which of the following is NOT generally included in the study of econometrics?
a. Using economic data to estimate relationships.
b. Testing economic hypotheses.
c. Predicting economic outcomes.
d. Developing new economic relationships.
2. Which of the following questions is a type that tools of econometrics are meant to answer?
a. If goods A and B are substitutes and the price of good A increases by $0.50, by how
much will the sales of good B change by?
b. If goods A and B are substitutes and the price of good A increases, how will this
affect the demand for good B?
c. If an income increase causes the sales of good A to fall, everything else held
constant, what type of good is good A?
d. Everything else the same, would the price of good A be higher in a competitive
industry or a monopolistic industry?
Ans: a
Level: Medium – Application
AACSA: Analytic
Section: 1.1
3.
d
s c
Consider the model Q f P, P , P , INC where Q d is quantity demanded of a
particular product per month, P is the price of the product, P s is the price of substitutes,
P c is the price of complements, and INC is monthly income. This equation represents _____.
a. a non-linear model
b. an economic model
c. an econometric model
d. an interval forecast
,4. Economic theory provides a basis for which variables are relevant and should be included in
an econometric model. But econometrics provides tools to estimate _____ which tells us
_____.
a. a model; the functional form that should be used
b. causality; why it happens that way
c. a parameter; how much or to what degree things change
d. variables; the probability of a specific outcome
Ans: c
Level: Medium – Analysis
AACSB: Analytic
Section: 1.2
5. Why is a random error term included in an econometric model?
a. Because many economic models have not been well developed yet and need to allow
for inaccuracies.
b. Because some people are irrational.
c. Because there is intrinsic uncertainty in any economic activity due to individual
decision making.
d. Because most estimating techniques are not well suited to work with a deterministic
model.
Ans: c
Level: Medium – Analysis
AACSB: Analytic
Section: 1.3
6. Refer to the equation Q s 1 2 P 3 P r 4 P s 5TAX e where Q s is annual
quantity supplied, P is the price of the product, P r is the price of resources, P s is the price
of goods that are substitutes in production, and TAX is the excise tax on the product. This
equation is _____.
a. an economic model
b. an econometric model
c. a market model
d. a non-linear model
, 7. Refer to the equation Q s 1 2 P 3 P r 4 P s 5TAX e where Q s is annual
quantity supplied, P is the price of the product, P r is the price of resources, P s is the price
of goods that are substitutes in production, and TAX is the excise tax on the product. In this
equation, 1 represents _____.
a. a parameter to be estimated
b. the random error term
c. the predicted quantity supplied
d. the equilibrium quantity
9. Suppose you stand outside a store and randomly give some shoppers coupons as they enter
while other shoppers receive none. You then record how much each shopper spends in the
store. The data you collect is _____ data.
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