1. The intercept term,β1, is absent in.................. model.
Correct : A. regression through the origin
2. The lin log model and log lin model are ............. in parameters.
Correct : A. non linear
3. r2 in intercept less model is.... .............. negative.
Correct : B. sometimes
4. The slope coefficient ,β2, of ............ model measures elasticity of Y with respect to X.
Correct : B. log log model
5. ....................... is a growth model.
Correct : A. alinear trend model
6. In regression through the origin model, ......................... is absent.
Correct : A. the intercept term ,β1
7. Econometrics is concerned with
Correct : D. all of the above
8. Which of the following is the combination of economic theory, mathematical economics and
economic statistics
Correct : A. econometrics
9. The first step in traditional econometric methodology is
Correct : A. statement of theory
10. Which of the following discipline express the economic theory in mathematical form
Correct : D. mathematical economics
11. Keynes postulated ----- relationship between income and consumption
Correct : B. positive
12. In the function, Q= α+βP, the slope coefficient is
Correct : B. β
13. In the Keynesian linear consumption function Y=β1+β2X, Y represents
Correct : B. consumption expenditure
14. In the Keynesian linear consumption function Y=β1+β2X, β1 is
Correct : B. intercept coefficient
15. In the Keynesian linear consumption function Y=β1+β2X, the parameters of the model are
Correct : A. β1and β2
16. In the Keynesian linear consumption function Y=β1+β2X, the marginal propensity to
consume is
Correct : D. β2
17. if the model has only one equation, the model is called
Correct : A. single equation model
18. if the model has more than one equation, the model is called
Correct : B. multiple equation model
19. In the Keynesian linear consumption function Y=β1+β2X, the dependent variable is
Correct : C. y
20. In the Keynesian linear consumption function Y=β1+β2X, the explanatory variable is
Correct : B. x
21. the variable appearing on the left side of the equality sign is called
Correct : A. dependent variable
22. In conventional model r2 is .............. negative.
Correct : C. never
23. the variable appearing on the right side of the equality sign is called
Correct : C. all of the above
24. independent variables are also known as
Correct : A. explanatory variables
25. which is the explanatory variable in the Keynesian consumption function
Correct : A. income
26. a mathematical model assumes----- relationship between variables
Correct : B. exact
27. a function that can be represented as straight line graphically is
Correct : B. linear
28. in the function Y=β1+β2X+u, the term ‘u’ is called
Correct : A. disturbance term
29. A model in which regressand is logarithmic is called...............
Correct : C. log lin model
30. the function Y=β1+β2X+u is an example of
Correct : 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
Correct : A. statistical inference
32. the term regression was first introduced by
Correct : C. francis galton
33. Reciprocal and log lin models are ............. in variables.
Correct : B. linear
34. the function Y=β1+β2X+u is an example of
Correct : B. linear regression model
35. In the Keynesian linear consumption function Y=β1+β2X, the independent variable is
Correct : B. . x
36. Statistical relationships assumes that variables are
Correct : C. all of the above
37. A statistical relationship per say cannot logically imply
Correct : B. causation
38. The measure that analyses the degree of linear association between two variables is called
Correct : A. correlation coefficient
39. In the Keynesian linear consumption function Y=β1+β2X, X represents
Correct : A. income
40. Correlation analysis is concerned with
Correct : C. degree of association among variables
41. Correlation theory is based on the assumption of
Correct : 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
Correct : C. 0.64
43. the law of universal regression was first introduced by
Correct : C. francis galton
44. In ------ analysis there is no distinction between dependent and explanatory variables
Correct : B. correlation
45. If we are studying the dependence of a variable on a single explanatory variable, the analysis
is called
Correct : 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
Correct : B. multiple regression analysis
47. The term “random” is synonym for the term
Correct : A. stochastic
48. If the data is collected at one point in time, it is called
Correct : B. cross section data
49. If the data is collected over a period of time, it is called
Correct : A. time series data
50. The combination of time series and cross sectional data is known as
Correct : A. pooled data
51. The set of all possible outcomes of an experiment or measurement is known as
Correct : A. population
52. conditional mean of Y given X value is denoted as
Correct : B. e(y/x)
53. An expected value is the same as
Correct : A. average value
54. The locus of points conditional means of the dependent variable for the fixed values of the
explanatory variables is
Correct : D. population regression curve
55. The regression line or curve passes through
Correct : D. conditional means
56. E (Y/Xi) = f (Xi) is known as
Correct : A. population regression function
57. In the regression function E(Y/Xi)=β1+β2Xi, regression coefficients are
Correct : C. β1and β2 d β2 an
58. the regression function E(Y/Xi)=β1+β2Xi is a
Correct : A. linear regression function
59. in the regression function E(Y/Xi)=β1+β2Xi , β1 is
Correct : A. intercept coefficient
60. in the regression function E(Y/Xi)=β1+β2Xi , β2 is
Correct : B. slope coefficient
61. the regression function E(Y/Xi)=β1+β2Xi
2 is linear in
Correct : B. parameters
62. in the regression function E (Y⁄X ) = β + β X is linear in
Correct : A. variables
63. in the function Yi= β1+β2Xi+ui, the term ui refers to
Correct : D. stochastic error term
64. in the function Yi= β1+β2Xi+ui, the term ui is ------- in nature
Correct : C. all of the above
65. “the descriptions be kept as simple as possible until proved inadequate” corresponds to
Correct : A. occam’s razor
66. The rule or formula that tells how to estimate the population parameter from the sample
information is called
Correct : B. estimator
67. The function Y = β + β X is a
Correct : A. sample regression function
68. the most popular method of constructing sample regression function in the regression
analysis is
Correct : A. method of ols
69. the method of ordinary least squares is attributed to
Correct : D. carl friedrich gauss
70. If each estimator provides only a single value of the relevant population parameter, it is
Correct : A. point estimator
71. If each estimator provides a range of possible values relevant population parameter, it is
Correct : B. interval estimator
72. The sample regression line obtained through the OLS method passes through
Correct : A. sample means
73. The Gaussian standard classical linear regression model assumes------- assumptions
Correct : B. ten
74. Which is the assumption of Gaussian standard classical linear regression model
Correct : D. all of the above
75. The numerical value obtained by the estimator in an application is known as
Correct : A. estimate
76. Homoscedasticity means------ for disturbances
Correct : B. equal variance
77. The literal meaning of econometrics is
Correct : B. economic measurement
78. Economic theory makes statements that are mostly
Correct : B. qualitative
79. In the function, Q= α+βP, the intercept coefficient is
Correct : B. β
80. Heteroscedasticity implies
Correct : B. unequal spread
81. Given any two X values the classical linear regression model assumes the correlation
between the disturbances as
Correct : D. zero
82. which is the dependent variable in the Keynesian consumption function
Correct : B. consumption
83. in the regression context, the OLS estimators are BLUE according to
Correct : B. gauss markov theorem
84. The summary measure used to measure the goodness of fit of a regression line
Correct : A. coefficient of determination
85. The numerical value of coefficient of determination lies between
Correct : B. 0 and 1
86. The classical theory of statistical inference consists of
Correct : A. estimation and hypothesis testing
87. The rejecting of a true hypothesis is called
Correct : A. type i error
88. Which of the following is used to measure the degree of association between two
variables
Correct : B. coefficient of correlation
89. The accepting of a false hypothesis is called
Correct : B. type ii error
90. The larger the standard error, the ----- the width of the confidence interval
Correct : B. larger
91. -β
represents:
Correct : C. Constant returns to scale
92. _____ is the best criteria to judge the validity of a model :
Correct : D. predictive power
93. The given function f (x) = ax + b, is an example of ____ function:
Correct : C. linear
94. The given function f (x) = ax2
+ bx + c , is an example of ____ function:
Correct : A. quadratic
95. For a utility function u = xy + 3x + 4y, marginal utility of good x is:
Correct : B. y + 3
96. Given a consumption function C = 250 + 0.75Yd, autonomous consumption is ____
Correct : C. 250
97. For a total cost function TC = 1.5Q2
+ 4Q + 46, MC is :
Correct : A. 1.5Q + 4 +
98. Abstraction from reality is made based on :
Correct : A. assumptions
99. ____ is a simplified description of reality, designed to yield hypothesis about economic
behaviour that can be tested.
Correct : B. postulate
100. ____ models are mathematical models designed to be used with data.