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.
Once you submit, you cannot change your answers.
Make sure you have a stable internet connection before starting.

Good luck!

Name

Roll No.

Gender and religion are examples of:

Qualitative variables

Quantitative variables

Ratio variables

Continuous variables

None

The variable whose value is predicted in regression is called:

Random variable

Control variable

Independent variable

Dependent variable

None

Econometricians are mainly interested in:

Causal inference

Data classification

Statistical inference

Descriptive analysis

None

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

Secondary data

Survey data

Experimental data

Primary data

None

Which of the following is NOT an objective of econometrics?

Eliminating uncertainty in economics

Evaluating policies

Estimating economic coefficients

Testing economic theories

None

Which of the following is a limitation of econometrics?

Does not provide reliable results

Does not use mathematics

Depends heavily on data quality

Cannot test theory

None

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

R² = 0.5

R² = −1

R² = 1

R² = 0

None

Mathematical economics differs from econometrics because it:

Uses empirical data

Expresses theory in mathematical form without empirical verification

Estimates regression coefficients

Tests hypotheses statistically

None

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

About 9% of variation in consumption is explained by income

90% of variation in consumption is explained by income

90% of variation in income is explained by consumption

About 9% of variation in income is explained by consumption

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

Data collected over time for single entity

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

None

11.

Coefficient of determination (R²) measures:

Variance of X

Correlation between errors

Standard deviation of residuals

Percentage of variation in Y explained by X

None

12.

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

13.

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

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

β₀ is intercept and β₁ is slope coefficient

β₀ is slope coefficient and β₁ is intercept

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

None

14.

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 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 quantity demanded is associated with 0.55 units increase in price

None

15.

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

Only data collection

Only theoretical analysis

To create mathematical models only

Testing economic theory with data

None

16.

Which field provides numerical estimates of economic relationships?

Economic theory

Economic statistics

Mathematical economics

Econometrics

None

17.

Econometrics is mainly concerned with:

Quantitative analysis of economic relationships

Expressing economic theory in equations

Theoretical analysis of economics

Qualitative description of economics

None

18.

Panel data is characterized by:

Only experimental observations

Randomly selected observations

Multiple entities at a single time

Same entity observed over multiple time periods

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.

Economic statistics mainly deals with:

Collecting and presenting economic data

Testing economic models

Estimating causal relationships

Predicting economic policies

None

21.

Which of the following is NOT a component of econometrics?

Statistics

Psychology

Economic theory

Mathematics

None

22.

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

TSS / ESS, It lies between 0 and 1

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

ESS/TSS, 0 to 10

ESS/TSS, It lies between -1 and 1

None

23.

A deterministic relationship means:

Exact relationship without randomness

Negative relationship

Non-linear relationship

Random relationship

None

24.

None

25.

GDP, exports, and investment are examples of:

Qualitative data

Categorical data

Quantitative data

Nominal data

None

26.

Who coined the term Econometrics?

Lawrence Klein

Jan Tinbergen

Alfred Marshall

Ragnar Frisch

None

27.

An estimator is:

A population value

A rule or formula used to estimate a parameter

A numerical value

A fixed constant

None

28.

The OLS method estimates regression coefficients by minimizing:

Sum of squared residuals

Sum of absolute errors

Sum of predicted values

Sum of squared X values

None

29.

Balanced panel data means:

No correlation between variables

Only time series data

All variables have equal variance

Each cross-section has the same number of time observations

None

30.

The fitted regression equation obtained from sample data is known as:

Sample regression function

Structural equation

Population regression function

Stochastic equation

None

1 out of 30

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

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