Econometrics MCQs

Econometrics MCQs

Answer these 20+ Econometrics MCQs and see how sharp is your knowledge of Econometrics. Scroll down and let's start!

1: Assumptions of a regression model can be evaluated by plotting and analyzing the ____________.

A.   Independent variables

B.   Dependent variables

C.   Error terms

D.   Beta values

2: In a regression analysis, if r2 = 1, then _____.

A.   SSE must be equal to 1

B.   SSE must be equal to 0

C.   SSE must be equal to 2

D.   SSE must be equal to 12

3: Real gdp equals _________ times _________.

A.   Labor input; labor productivity

B.   Economies of scale; resource allocation

C.   Both

D.   None of these

4: The __________ demand for money stays the same regardless of the interest rate.

A.   Decrease

B.   Transaction

C.   Increase

D.   None of these

5: The car market is an example of _____ because it has few sellers who offer differentiated products.

A.   Oligopoly

B.   Monopoly

C.   Monopolistic

D.   Competition

6: A multiple regression model has _____.

A.   At least two dependent variables

B.   More than one dependent variable

C.   More than one independent variable

D.   Only one independent variable

7: All of the following are considered active job search methods except _____.

A.   Attending job training programs

B.   Have to follow a set schedule

C.   Business cycle

D.   Get additional education to learn new skills

8: In economics, cost is measured as ________, and benefit is measured as ________.

A.   What you must give up to get something; what you are willing to give up to get it

B.   What you are willing to give up to get it; what you must give up to get something

C.   The amount of money that you pay for something; the amount of money that someoneelse is willing to pay you

D.   What you are willing to pay on the margin; what the government pays you when you areunemployed or retired

E.   The amount of money that you pay on the margin; the amount of money that you receiveon the margin

9: Lower production costs can allow companies to _____.

A.   Charge lower prices

B.   Make less profits

C.   Sell fewer products

10: Nonmetallic resources are commonly used for _____.

A.   Building

B.   Conserving

C.   Recycling

D.   Extracted

11: Refer to the data. at 3 units of output, total variable cost is ____ and total cost is ____.

A.   $60; $210

B.   $30; $210

C.   $60; $200

12: All the variables in a multiple regression analysis _____.

A.   Independent

B.   Dependent

C.   Both of these

D.   Non of these

13: A _____________ is a line that provides an approximation of the relationship between the variables.

A.   Line chart

B.   Sparkline

C.   Trendline

D.   Gridline

14: The ________ measures the total variation in the dependent variable in simple regression analysis.

A.   Standard error

B.   Sum of squares error

C.   Sum of squares regression

D.   Total sum of squares

15: An externality can be created by _______.

A.   A production activity

B.   A consumption activity

C.   Both A & B

D.   None of the above

16: In regression analysis, the independent variable is typically plotted on the _____.

A.   X-axis of a scater diagram

B.   Y-axis of a scater diagram

C.   Both of above

D.   None of these

17: In a regression analysis, the variable that is used to predict the dependent variable ______.

A.   Is the independent variable

B.   X-axis of a scatter diagram

C.   SSR = SST

D.   SSE must be equal to 0

E.   All are required assumptions about the error term

18: The global economy _____.

A.   Is a trend that is fading quickly

B.   Has only positive effects for the United States

C.   Has eliminated some jobs in the United States

D.   Has little effect on today’s workers in the United States

19: Parabolic mirrors ________ sunlight on a collecting medium.

A.   Electively focus the brightest

B.   Selectively reflect the brightest

C.   Deflect the most

D.   Diffuse intense

E.   Focus intense

20: The average miles per gallon rating of u.s. vehicles has ________.

A.   Made no improvement the past two decades

B.   Made more improvement the past two decades

C.   Made less improvement the past two decades

21: Fundamentally, __________ refers to the ability of a subject and an object to interact.

A.   Access

B.   Temporal immediacy

C.   Probability of effect

D.   Proximity of effect