Econometrics-I Test 5th Regular (2023-2027)

Welcome to your Econometrics-I Test 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.
Once you submit, you cannot change your answers.
Make sure you have a stable internet connection before starting.

Good luck!

Name

Roll No.

GDP, exports, and investment are examples of:

Qualitative data

Quantitative data

Categorical data

Nominal data

None

Regression analysis is mainly used to:

Classify variables

Measure correlations

Collect data

Measure relationship and predict values

None

Which of the following is NOT a component of econometrics?

Mathematics

Economic theory

Psychology

Statistics

None

Data collected directly through surveys or interviews is called:

Primary data

Experimental data

Panel data

Secondary data

None

Gender and religion are examples of:

Quantitative variables

Qualitative variables

Continuous variables

Ratio variables

None

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

Secondary data

Primary data

Experimental data

Survey data

None

Data collected through controlled experiments is known as:

Observational data

Cross-section data

Experimental data

Secondary data

None

An estimate is:

A numerical value

A fixed constant

A population value

A rule or formula used to estimate a parameter

None

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

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 decrease in price

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

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

None

10.

Which of the following best describes pooled data?

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

Data collected at single point int time for several units

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

Data collected over time for single entity

None

11.

The correlation coefficient ranges between:

−1 to +1

0 to 1

−∞ to +∞

0 to 10

None

12.

Panel data is characterized by:

Randomly selected observations

Same entity observed over multiple time periods

Multiple entities at a single time

Only experimental observations

None

13.

Coefficient of determination (R²) measures:

Variance of X

Correlation between errors

Percentage of variation in Y explained by X

Standard deviation of residuals

None

14.

A deterministic relationship means:

Negative relationship

Random relationship

Exact relationship without randomness

Non-linear relationship

None

15.

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

Intercept is autonomous consumption and slope coefficient is induced consumption

Intercept is MPC and slope coefficient is autonomous consumption

Intercept is autonomous savings and slope coefficient is MPS

Intercept is autonomous consumption and slope coefficient is MPC

None

16.

The least squares method estimates parameters by:

Minimizing absolute errors

Minimizing squared residuals

Minimizing variance

Maximizing correlation

None

17.

Balanced panel data means:

Only time series data

All variables have equal variance

Each cross-section has the same number of time observations

No correlation between variables

None

18.

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

About 9% of variation in income is explained by consumption

90% of variation in consumption is explained by income

90% of variation in income is explained by consumption

About 9% of variation in consumption is explained by income

None

19.

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

Primary data

Cross-sectional data

Time series data

Panel data

None

20.

The variable whose value is predicted in regression is called:

Dependent variable

Random variable

Independent variable

Control variable

None

21.

Panel data is also known as:

Combined data

Time-series data

Qualitative data

Longitudinal data

None

22.

Mathematical economics differs from econometrics because it:

Estimates regression coefficients

Tests hypotheses statistically

Uses empirical data

Expresses theory in mathematical form without empirical verification

None

23.

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

GDP of Pakistan from 2000–2020

Inflation rate of Asian countries for 25 years

Monthly rainfall for 10 years I

Income of 100 households in 2024

None

24.

An estimator is:

A fixed constant

A rule or formula used to estimate a parameter

A numerical value

A population value

None

25.

A stochastic relationship includes:

Random disturbance term

No error

Exact values

Perfect prediction

None

26.

Economic statistics mainly deals with:

Collecting and presenting economic data

Estimating causal relationships

Testing economic models

Predicting economic policies

None

27.

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

β₀ is slope coefficient and β₁ is intercept

None

28.

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

R² = −1

R² = 0

R² = 0.5

R² = 1

None

29.

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

ESS/TSS, It lies between -1 and 1

ESS/TSS, 0 to 10

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

TSS / ESS, It lies between 0 and 1

None

30.

Which of the following is NOT an objective of econometrics?

Evaluating policies

Testing economic theories

Eliminating uncertainty in economics

Estimating economic coefficients

None

1 out of 30

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