TB-Wooldridge-ch-5e

.0001pt;mso-layout-grid-align:
none;text-autospace:none”>1.
Econometrics is the branch of economics that _____.a.
studies the behavior of individual economic agents in making economic decisionsb. develops and uses statistical
methods for estimating economic relationshipsc.deals with the
performance, structure, behavior, and decision-making of aneconomyas a wholed. applies mathematical methods to
represent economic theories and solve economic problems..2. Nonexperimental data is called _____.a. cross-sectional datab. time series datac. observational datad. panel data3.Which of
the following is true of experimental data?a. Experimental data are collected in laboratory environments in the
natural sciences.b. Experimental data cannot be collected in a controlled
environment.c. Experimental data is sometimes called observational data.d.
Experimental data is sometimes called retrospective data. 4. An empirical
analysis relies on _____to test a theory.a. common
senseb.
ethical considerationsc. datad.
customs and conventions . 5. The
term ‘u’in an econometric model is usually
referred to as the _____.a. error
term b.
parameterc. hypothesisd.
dependent variable 6. The
parameters of an econometric model _____.a.
include all unobserved factors affecting the variable being studiedb. describe
the strength of the relationship between the variable under study and the
factors affecting itc. refer
to the explanatory variables included in the modeld. refer
to the predictions that can be made using the model .7. Which
of the following is the first step in empirical economic analysis?a.
Collection of datab.
Statement of hypothesesc.
Specification of an econometric modeld.
Testing of hypotheses