Basic to Advanced Econometrics MCQs 1.1

Welcome to your Basic to Advanced Econometrics MCQs 1.1

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Name

Who coined the term Econometrics?

Lawrence Klein

Jan Tinbergen

Ragnar Frisch

Alfred Marshall

None

Which of the following is NOT a component of econometrics?

Statistics

Mathematics

Psychology

Economic theory

None

Which of the following is a limitation of econometrics?

Does not provide reliable results

Depends heavily on data quality

Does not use mathematics

Cannot test theory

None

The first Nobel Prize in Economic Sciences was given to …

Marshall and Tinbergen

Frisch and Klein

Frisch and Tinbergen

Tinbergen and Klein

None

The role of mathematics in econometrics is to:

Interpret results of economic relationships

Express economic theory in equations

Collect data

Conduct surveys

None

Data containing observations on same several units over several time periods is called:

Cross-section

Qualitative data

Panel data

Time series

None

Which data is already available from published sources?

Panel data

Secondary data

Primary data

Cross-sectional data

None

Which of the following is a major difference between econometrics and statistics?

Statistics uses data but econometrics not

Econometrics does not use probability

Econometrics is based on economic theory

Statistics studies causal inference

None

Which data is collected directly by the researcher?

Primary data

Secondary data

Time series data

Panel data

None

10.

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

Monthly rainfall for 10 years I

GDP of Pakistan from 2000–2020

Inflation rate of Asian countries for 25 years

Income of 100 households in 2024

None

11.

Crime index, corruption index and unemployment of 30 countries from 2000 to 2023 is an example of:

Cross-section data

Panel data

Pooled data

Time-series data

None

12.

Panel data is also known as:

Time-series data

Qualitative data

Longitudinal data

Combined data

None

13.

Which field provides numerical estimates of economic relationships?

Econometrics

Economic theory

Mathematical economics

Economic statistics

None

14.

Residual in regression is calculated as:

Actual − Predicted

Predicted − Actual

Actual - Mean of Y

Slope * X

None

15.

Which data type records observations over time for one variable?

Panel data

Time series data

Pooled data

Cross-section data

None

16.

Data on Quarterly GDP of Pakistan from 2020 to 2024 is an example of:

Time-series data

Pooled data

Cross-section data

Panel data

None

17.

Which of the following best describes pooled data?

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

Data collected over time for single entity

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

Data collected at single point int time for several units

None

18.

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

Cross-sectional data

Primary data

Time series data

Panel data

None

19.

A panel is called balanced when:

Variables are stationary

There is no heterogeneity

All units have same time observations

Sample size is large

None

20.

Econometricians are mainly interested in:

Causal inference

Data classification

Statistical inference

Descriptive analysis

None

21.

The role of statistics in econometrics is to:

Estimate parameters and test hypotheses

Manage financial records

Express economic theory into equations

Develop theories

None

22.

Economic statistics is primarily concerned with:

Causal inference

Collecting and presenting economic data

Hypothesis testing

Estimating regression models

None

23.

Econometrics is mainly concerned with:

Qualitative description of economics

Expressing economic theory in equations

Quantitative analysis of economic relationships

Theoretical analysis of economics

None

24.

Economic theory differs from econometrics because economic theory:

Provides numerical estimates

Mostly qualitative in nature

Tests hypotheses empirically

Uses only data

None

25.

Which of the following statements best explains the scope of econometrics?

Only theoretical analysis

Testing economic theory with data

To create mathematical models only

Only data collection

None

1 out of 25

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