Deck 1: Econometrics and Keynesian Linear Consumption Function

Question 1

The intercept term,?1, is absent in.................. model.

A)regression through the origin
B)lin log model
C)log lin model
D)ols model

Answer 1

regression through the origin

Question 2

The lin log model and log lin model are ............. in parameters.

A)non linear
B)linear
C)functional
D)dependent

Answer 2

non linear

Question 3

r2 in intercept less model is.... .............. negative.

A)always
B)sometimes
C)never
D)cannot say

Answer 3

sometimes

Question 4

The slope coefficient ,?2, of ............ model measures elasticity of Y with respect to X.

A)regression through the origin
B)log log model
C)log lin model
D)clrm

Question 5

....................... is a growth model.

A)alinear trend model
B)lin log model
C)log lin model
D)none of the above

Question 6

In regression through the origin model, ......................... is absent.

A)the intercept term ,?1
B)the slope coefficient ,?2
C)error term
D)explanatory variables

Question 7

Econometrics is concerned with

A)empirical support to economic theory
B)quantitative analysis of economic data
C)use of tools of mathematics and statistical inference
D)all of the above

Question 8

Which of the following is the combination of economic theory, mathematical economics and economic statistics

A)econometrics
B)statistics
C)mathematics
D)quantitative economics

Question 9

The first step in traditional econometric methodology is

A)statement of theory
B)forecasting
C)obtaining data
D)estimation of the model

Question 10

Which of the following discipline express the economic theory in mathematical form

A)econometrics
B)statistics
C)mathematics
D)mathematical economics

Question 11

Keynes postulated ----- relationship between income and consumption

A)negative
B)positive
C)non linear
D)infinite

Question 12

In the function, Q= ?+?P, the slope coefficient is

A)?
B)?
C)p
D)q

Question 13

In the Keynesian linear consumption function Y=?1+?2X, Y represents

A)income
B)consumption expenditure
C)output
D)price

Question 14

In the Keynesian linear consumption function Y=?1+?2X, ?1 is

A)slope coefficient
B)intercept coefficient
C)output coefficient
D)none of the above

Question 15

In the Keynesian linear consumption function Y=?1+?2X, the parameters of the model are

A)?1and ?2
B). ?1and x
C)x and y d. y an
D)?2

Question 16

In the Keynesian linear consumption function Y=?1+?2X, the marginal propensity to consume is

A)?1
B)x
C)y
D)?2

Question 17

if the model has only one equation, the model is called

A)single equation model
B)multiple equation model
C)variable equation model
D)none of the above

Question 18

if the model has more than one equation, the model is called

A)single equation model
B)multiple equation model
C)variable equation model
D)none of the above

Question 19

In the Keynesian linear consumption function Y=?1+?2X, the dependent variable is

A)?1
B)x
C)y
D)?2

Question 20

In the Keynesian linear consumption function Y=?1+?2X, the explanatory variable is

A)?1
B)x
C)y
D)?2

Question 21

the variable appearing on the left side of the equality sign is called

A)dependent variable
B)independent variable
C)explanatory variable
D)none of the above

Question 22

In conventional model r2 is .............. negative.

A)always
B)sometimes
C)never
D)cannot say

Question 23

the variable appearing on the right side of the equality sign is called

A)independent variable
B)explanatory variable
C)all of the above
D)none of the above

Question 24

independent variables are also known as

A)explanatory variables
B)dependent variable
C)implicit variable
D)static variable

Question 25

which is the explanatory variable in the Keynesian consumption function

A)income
B)consumption
C)price
D)output