Showing Page:
1/3
Introduction to Economics
Basic Solved Mcq’s
1. Two events, A and B, are said to be mutually
exclusive if:
A. P (A | B) = 1
B. P (B | A) = 1
C. P (A and B) = 1
D. P (A and B) = 0
Correct
D. P (A and B) = 0
2. A Type I error occurs when we:
A. rejects a false null hypothesis
B. rejects a true null hypothesis
C. do not reject a false null hypothesis
D. do not reject a true null hypothesis
Correct
D. Reject a true null hypothesis
3. What is the meaning of the term "heteroscedasticity"?
A. The variance of the errors is not constant
B. The variance of the dependent variable is not constant
C. The errors are not linearly independent of one another
D. The errors have non- zero mean
Correct
A. The variance of the errors is not constant
4. What would be then consequences for the
OLSestimator if heteroscedasticity is present in a
regression model but ignored?
Showing Page:
2/3
A. It will be ignored
B. It will be inconsistent
C. It will be inefficient
D. All of a),c), b) will be true.
Correct
C. It will be inefficient
5. Which one of the following is NOT a plausible remedy
for near multicollinearity?
A. Use principal components analysis
B. Drop one of the collinear variables
C. Use a longer run of data
D. Take logarithms of each of the variables
Correct
D. Take logarithms of each of the variables
6. What will be the properties of the OLS estimator in the
presence of multicollinearity?
A. It will be consistent unbiased and efficient
B. It will be consistent and unbiased but not efficient
C. It will be consistent but not unbiased
D. It will not be consistent
Correct
A. It will be consistent unbiased and efficient
7. A sure way of removing multicollinearity from the
model is to
A. Work with panel data
B. Drop variables that cause multicollinearity in the first place
C. Transform the variables by first differencing them
D. Obtaining additional sample data
Correct
B. Drop variables that cause multicollinearity in the first place
Showing Page:
3/3
8. Autocorrelation is generally occurred in
A. Cross-section data
B. Time series data
C. Pooled data
D. None of the above
Correct
B. Time series data
9. The regression coefficient estimated in the presence
of autocorrelation in the sample data are NOT
A. Unbiased estimators
B. Consistent estimators
C. Efficient estimators
D. Linear estimators
Correct
C. Efficient estimators
10. In the regression function y=α + βx +c
A. x is the repressor
B. Y is the repressor
C. x is the regressed
D. none of these
Correct
A. x is the repressor
The End

Unformatted Attachment Preview

Introduction to Economics Basic Solved Mcq’s 1. Two events, A and B, are said to be mutually exclusive if: A. P (A | B) = 1 B. P (B | A) = 1 C. P (A and B) = 1 D. P (A and B) = 0 Correct D. P (A and B) = 0 2. A Type I error occurs when we: A. rejects a false null hypothesis B. rejects a true null hypothesis C. do not reject a false null hypothesis D. do not reject a true null hypothesis Correct D. Reject a true null hypothesis 3. What is the meaning of the term "heteroscedasticity"? A. The variance of the errors is not constant B. The variance of the dependent variable is not constant C. The errors are not linearly independent of one another D. The errors have non- zero mean Correct A. The variance of the errors is not constant 4. What would be then consequences for the OLSestimator if heteroscedasticity is present in a regression model but ignored? A. It will be ignored B. It will be inconsistent C. It will be inefficient D. All of a),c), b) will be true. Correct C. It will be inefficient 5. Which one of the following is NOT a plausible remedy for near multicollinearity? A. Use principal components analysis B. Drop one of the collinear variables C. Use a longer run of data D. Take logarithms of each of the variables Correct D. Take logarithms of each of the variables 6. What will be the properties of the OLS estimator in the presence of multicollinearity? A. It will be consistent unbiased and efficient B. It will be consistent and unbiased but not efficient C. It will be consistent but not unbiased D. It will not be consistent Correct A. It will be consistent unbiased and efficient 7. A sure way of removing multicollinearity from the model is to A. Work with panel data B. Drop variables that cause multicollinearity in the first place C. Transform the variables by first differencing them D. Obtaining additional sample data Correct B. Drop variables that cause multicollinearity in the first place 8. Autocorrelation is generally occurred in A. Cross-section data B. Time series data C. Pooled data D. None of the above Correct B. Time series data 9. The regression coefficient estimated in the presence of autocorrelation in the sample data are NOT A. Unbiased estimators B. Consistent estimators C. Efficient estimators D. Linear estimators Correct C. Efficient estimators 10. In the regression function y=α + βx +c A. x is the repressor B. Y is the repressor C. x is the regressed D. none of these Correct A. x is the repressor The End Name: Description: ...
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.
Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4