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.

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

R² = −1

R² = 0.5

R² = 1

R² = 0

None

Which of the following is NOT an objective of econometrics?

Estimating economic coefficients

Eliminating uncertainty in economics

Evaluating policies

Testing economic theories

None

GDP, exports, and investment are examples of:

Quantitative data

Qualitative data

Categorical data

Nominal data

None

The OLS method estimates regression coefficients by minimizing:

Sum of predicted values

Sum of absolute errors

Sum of squared residuals

Sum of squared X values

None

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

Data collected at single point int time for several units

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

None

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

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 increase in price

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 increase in quantity demanded

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

None

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

About 9% of variation in income is explained by consumption

90% of variation in consumption is explained by income

None

10.

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

11.

Econometricians are mainly interested in:

Descriptive analysis

Causal inference

Data classification

Statistical inference

None

12.

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

Testing economic theory with data

To create mathematical models only

Only theoretical analysis

Only data collection

None

13.

Coefficient of determination (R²) measures:

Correlation between errors

Variance of X

Percentage of variation in Y explained by X

Standard deviation of residuals

None

14.

Economic statistics mainly deals with:

Testing economic models

Collecting and presenting economic data

Estimating causal relationships

Predicting economic policies

None

15.

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

ESS/TSS, It lies between -1 and 1

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

ESS/TSS, 0 to 10

TSS / ESS, It lies between 0 and 1

None

16.

An estimator is:

A rule or formula used to estimate a parameter

A population value

A numerical value

A fixed constant

None

17.

Which of the following is NOT a component of econometrics?

Statistics

Psychology

Economic theory

Mathematics

None

18.

Panel data is characterized by:

Same entity observed over multiple time periods

Only experimental observations

Randomly selected observations

Multiple entities at a single time

None

19.

Which field provides numerical estimates of economic relationships?

Economic statistics

Econometrics

Economic theory

Mathematical economics

None

20.

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

Stochastic equation

Population regression function

Sample regression function

Structural equation

None

21.

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

Time series data

Primary data

Panel data

Cross-sectional data

None

22.

Which of the following is a limitation of econometrics?

Cannot test theory

Depends heavily on data quality

Does not provide reliable results

Does not use mathematics

None

23.

Gender and religion are examples of:

Ratio variables

Qualitative variables

Quantitative variables

Continuous variables

None

24.

Econometrics is mainly concerned with:

Qualitative description of economics

Quantitative analysis of economic relationships

Theoretical analysis of economics

Expressing economic theory in equations

None

25.

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

26.

Who coined the term Econometrics?

Jan Tinbergen

Lawrence Klein

Alfred Marshall

Ragnar Frisch

None

27.

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

Secondary data

Survey data

Experimental data

Primary data

None

28.

A deterministic relationship means:

Negative relationship

Exact relationship without randomness

Random relationship

Non-linear relationship

None

29.

Balanced panel data means:

Each cross-section has the same number of time observations

All variables have equal variance

No correlation between variables

Only time series data

None

30.

The variable whose value is predicted in regression is called:

Control variable

Random variable

Dependent variable

Independent variable

None

1 out of 30

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

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