Econometrics-1 Test (2) 5th Regular (2023-2027)

Welcome to your Econometrics-1 Test (2) 5th Regular (2023-2027)

This quiz consists of 30 multiple-choice questions, each carrying 1 mark.
You have 30 minutes to complete the quiz.
Read each question carefully and select the best answer.
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Name

Roll No.

Economic statistics mainly deals with:

Estimating causal relationships

Predicting economic policies

Collecting and presenting economic data

Testing economic models

None

Mathematical economics differs from econometrics because it:

Estimates regression coefficients

Expresses theory in mathematical form without empirical verification

Uses empirical data

Tests hypotheses statistically

None

In a demand function if slope coefficient = -0.55, what does it mean?

1 unit increase in quantity demanded is associated with 0.55 units decrease in price

1 unit increase in price is associated with 0.55 units decrease in quantity demanded

1 unit increase in price is associated with 0.55 units increase in quantity demanded

1 unit increase in quantity demanded is associated with 0.55 units increase in price

None

The least squares method estimates parameters by:

Maximizing correlation

Minimizing absolute errors

Minimizing squared residuals

Minimizing variance

None

Balanced panel data means:

Only time series data

Each cross-section has the same number of time observations

All variables have equal variance

No correlation between variables

None

An estimator is:

A numerical value

A fixed constant

A population value

A rule or formula used to estimate a parameter

None

Which of the following is NOT an objective of econometrics?

Eliminating uncertainty in economics

Testing economic theories

Estimating economic coefficients

Evaluating policies

None

Data collected through controlled experiments is known as:

Secondary data

Observational data

Cross-section data

Experimental data

None

Data collected directly through surveys or interviews is called:

Panel data

Experimental data

Primary data

Secondary data

None

10.

Regression analysis is mainly used to:

Collect data

Classify variables

Measure relationship and predict values

Measure correlations

None

11.

In a consumption function if r-squared = 0.90 it means:

90% of variation in income is explained by consumption

About 9% of variation in consumption is explained by income

90% of variation in consumption is explained by income

About 9% of variation in income is explained by consumption

None

12.

Coefficient of determination (R²) measures:

Variance of X

Standard deviation of residuals

Correlation between errors

Percentage of variation in Y explained by X

None

13.

In consumption function what does intercept, and slope coefficient represent?

Intercept is autonomous consumption and slope coefficient is MPC

Intercept is MPC and slope coefficient is autonomous consumption

Intercept is autonomous consumption and slope coefficient is induced consumption

Intercept is autonomous savings and slope coefficient is MPS

None

14.

Panel data is characterized by:

Same entity observed over multiple time periods

Multiple entities at a single time

Randomly selected observations

Only experimental observations

None

15.

Gender and religion are examples of:

Quantitative variables

Qualitative variables

Continuous variables

Ratio variables

None

16.

Which of the following is NOT a component of econometrics?

Statistics

Psychology

Economic theory

Mathematics

None

17.

If all observations lie exactly on the regression line, then:

R² = 1

R² = −1

R² = 0.5

R² = 0

None

18.

Data obtained from sources like WDI or published reports is known as:

Primary data

Experimental data

Secondary data

Survey data

None

19.

In a simple linear regression model what does β₀ and β₁ represents?

β₀ is intercept and β₁ is slope coefficient

β₀ is the value of X when Y=0 and β₁ is slope coefficient

β₀ is slope coefficient and β₁ is intercept

β₀ is intercept and β₁ is change in X due to one unit change in Y

None

20.

Data collected at one point in time for several individuals is called:

Panel data

Time series data

Cross-sectional data

Primary data

None

21.

Panel data is also known as:

Longitudinal data

Combined data

Qualitative data

Time-series data

None

22.

A deterministic relationship means:

Exact relationship without randomness

Non-linear relationship

Negative relationship

Random relationship

None

23.

The variable whose value is predicted in regression is called:

Independent variable

Random variable

Dependent variable

Control variable

None

24.

Which of the following is an example of cross-sectional data?

Income of 100 households in 2024

GDP of Pakistan from 2000–2020

Inflation rate of Asian countries for 25 years

Monthly rainfall for 10 years I

None

25.

The correlation coefficient ranges between:

−∞ to +∞

0 to 10

0 to 1

−1 to +1

None

26.

An estimate is:

A numerical value

A population value

A rule or formula used to estimate a parameter

A fixed constant

None

27.

GDP, exports, and investment are examples of:

Quantitative data

Nominal data

Categorical data

Qualitative data

None

28.

Which of the following statement is correct for coefficient of determination?

1-(RSS / TSS), It lies between 0 and 1

ESS/TSS, 0 to 10

TSS / ESS, It lies between 0 and 1

ESS/TSS, It lies between -1 and 1

None

29.

Which of the following best describes pooled data?

Data collected over time for single entity

Combination of cross-section and time series without tracking the same units

Combination of cross-section and time series with tracking the same units

Data collected at single point int time for several units

None

30.

A stochastic relationship includes:

Perfect prediction

Random disturbance term

No error

Exact values

None

1 out of 30

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Econometrics-1 Test (2) 5th Regular (2023-2027)

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