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.
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Name

Roll No.

Mathematical economics differs from econometrics because it:

Expresses theory in mathematical form without empirical verification

Estimates regression coefficients

Uses empirical data

Tests hypotheses statistically

None

Which of the following is NOT an objective of econometrics?

Testing economic theories

Evaluating policies

Eliminating uncertainty in economics

Estimating economic coefficients

None

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

Intercept is autonomous consumption and slope coefficient is MPC

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

None

Balanced panel data means:

Each cross-section has the same number of time observations

No correlation between variables

Only time series data

All variables have equal variance

None

The least squares method estimates parameters by:

Maximizing correlation

Minimizing squared residuals

Minimizing absolute errors

Minimizing variance

None

Which of the following is NOT a component of econometrics?

Mathematics

Psychology

Economic theory

Statistics

None

Coefficient of determination (R²) measures:

Variance of X

Standard deviation of residuals

Percentage of variation in Y explained by X

Correlation between errors

None

Economic statistics mainly deals with:

Collecting and presenting economic data

Testing economic models

Predicting economic policies

Estimating causal relationships

None

A stochastic relationship includes:

Exact values

Random disturbance term

Perfect prediction

No error

None

10.

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

R² = 0

R² = −1

R² = 0.5

R² = 1

None

11.

Gender and religion are examples of:

Continuous variables

Quantitative variables

Qualitative variables

Ratio variables

None

12.

The correlation coefficient ranges between:

0 to 1

−1 to +1

−∞ to +∞

0 to 10

None

13.

Panel data is also known as:

Qualitative data

Longitudinal data

Combined data

Time-series data

None

14.

An estimate is:

A rule or formula used to estimate a parameter

A fixed constant

A population value

A numerical value

None

15.

Panel data is characterized by:

Randomly selected observations

Same entity observed over multiple time periods

Only experimental observations

Multiple entities at a single time

None

16.

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

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

β₀ is intercept and β₁ is slope coefficient

None

17.

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

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

ESS/TSS, It lies between -1 and 1

ESS/TSS, 0 to 10

TSS / ESS, It lies between 0 and 1

None

18.

A deterministic relationship means:

Non-linear relationship

Exact relationship without randomness

Negative relationship

Random relationship

None

19.

The variable whose value is predicted in regression is called:

Control variable

Dependent variable

Random variable

Independent variable

None

20.

Data collected through controlled experiments is known as:

Experimental data

Secondary data

Observational data

Cross-section data

None

21.

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

Panel data

Time series data

Primary data

Cross-sectional data

None

22.

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

Inflation rate of Asian countries for 25 years

Monthly rainfall for 10 years I

GDP of Pakistan from 2000–2020

Income of 100 households in 2024

None

23.

Which of the following best describes pooled data?

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

Data collected over time for single entity

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

Data collected at single point int time for several units

None

24.

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

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 decrease in price

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

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

None

25.

Data collected directly through surveys or interviews is called:

Panel data

Experimental data

Secondary data

Primary data

None

26.

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

About 9% of variation in income is explained by consumption

About 9% of variation in consumption is explained by income

90% of variation in income is explained by consumption

90% of variation in consumption is explained by income

None

27.

GDP, exports, and investment are examples of:

Qualitative data

Nominal data

Categorical data

Quantitative data

None

28.

Regression analysis is mainly used to:

Collect data

Classify variables

Measure correlations

Measure relationship and predict values

None

29.

An estimator is:

A numerical value

A rule or formula used to estimate a parameter

A population value

A fixed constant

None

30.

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

Primary data

Survey data

Secondary data

Experimental data

None

1 out of 30

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

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