Econometrics Multiple Choice Questions (MCQ)

Econometrics Questions and MCQ

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Econometrics Questions and Answers

What is econometrics?

‘Econometrics’ is a method which uses mathematical an statistical ways of analysis to find economic relationship. Read MCQ related with econometrics.

Why is it used?

Who is the father of econometrics?

Ragnar Frisch is the father of econometrics.

How the Econometric Models are estimated?

The models are estimated by using some well known software programmes such as Stata, SPSS, SAS and R.

Full Form SPSS: Statistical Package for the Social Science.

Full Form SAS: Statistical Analysis System.

What are the basic techniques?

1. It can be single equation regression model or,
2. It may consist a simultaneous equations.

What is the major importance?

The major importance is economic forcasting. It helps in decision taking.

What is the difficulty level?

It is considered as the most difficult topic of economics.

What are the basic steps?

1. Selection of hypothesis.
2. Define objectives.
3. Make models.
4. Estimation of variables.
5. Data analysis.
6. Validation.

Paragraph 01: Econometrics Multiple Choice Questions

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Answer Key After Each 10th MCQ

Question 01. The quantitative analysis (econometrics) is based on..?

(a). Concurrent development of theory.
(b). Concurrent development of observation.
(c). Both a and b.

(d). Concurrent development of theory and observation, and these are related by appropriate methods of inference.

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Question 02. The first known use of the term ‘econometrics’ was by given by..?

(a). Adolph Wagner.
(b). Paweł Ciompa.
(c). John Maynard.
(d). Walter Eucken.

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Question 03. The founding fathers of econometric are..?

(a). Helen H. Jensen and Jayson Lusk.
(b). David Gilberman and James Shortle.
(c). Jan Tinbergen and Ragnar Frisch.
(d). None of the above.

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Question 04. The term econometrics was coined by (in modern sense)..?

(a). Ragnar Frisch.
(b). James Shortle.
(c). Jayson Lusk.
(d). David Gilberman.

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Question 05. Econometrics is..?

(a). Statistical analysis of economic relationship.
(b). Mathematical analysis of economic relationship.
(c). Both a and b.
(d). None of the above.

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Also read: IBPS AFO Multiple Choice Questions

Question 06. Why do firm owners use econometric?
(a). To aid decisions on prices.
(b). To aid decision on inventory.
(c). To aid decision on production.
(d). All of the above.

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Question 07. Which is not a phenomena studied under econometrics?

(a). Consumption pattern.
(b). Consumer behavior.
(c). Production and cost.
(d). Supply.

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Question 08. An economist mainly uses econometrics for..?

(a). Studying relationship between goods and prices.
(b). Studying relationship between production and price.
(c). Studying relationship between demand and supply.
(d). Studying relationship between economic variables.

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Question 09. Which is a basic tool of econometric..?

(a). Simple linear regression model.
(b). Multi level linear regression model.
(c). Multiple linear regression model.
(d). General linear model.

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Question 10. What is BLUE..?

(a). Best Linear Unbiased Estimator.
(b). Biased Linear Unit Estimator.
(c). Bohr’s Linear Unbiased Estimator.
(d). Best Linear Unit Estimator.

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Econometrics MCQ

Question 11. Unbiasedness, efficiency and consistency are … properties of estimators?

(a). Sociological.
(b). Statistical.
(c). Mathematical.
(d). All of the above.

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Question 12. An estimator is unbiased if..?

(a). Its expected value is the true value of the parameter.
(b). Its expected value is not the true value of the parameter.
(c). Its unexpected value is the true value of the parameter
(d). None of the above.

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Question 13. An estimator is consistent if..?

(a). It converges to the true value as the sample size remains same.
(b). It converges to the true value as the sample size gets smaller.
(c). It converges to the true value as the sample size gets larger.
(d). Any of the option.

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Question 14. An estimator is efficient if..?

(a). If the estimator has higher standard error than other unbiased estimators for a given sample size.
(b). If the estimator has lower standard error than other biased estimators for a given sample size. 
(c). Both a and b.
(d). If the estimator has lower standard error than other unbiased estimators for a given sample size.

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Question 15. The the most used method for estimation in econometrics is..?

(a). OLS.
(b). GLS.
(c). MLE.
(d). GMM.

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Also read: BHU UET Multiple Choice Questions

Question 16. Work in estimating supply functions has been confined mostly to..?

(a). Fisheries.
(b). Agriculture.
(c). Veterinary.
(d). All of the above.

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Question 17. What is the problem in work in estimating functions..?

(a). Distinguish the effects of external factors.
(b). Distinguish the effects of internal factors.
(c). Both.
(d). None.

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Question 18. The applied econometric uses …. and …. for assessing economic theories?

(a). Practical econometrics and real-world data.
(b). Theoretical econometrics and real-world data.
(c). Both a and b.
(d). None of the above.

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Question 19. Which type of approach econometric is..?

(a). Differing.
(b). Non-differing.
(c). Both.
(d). None of the above.

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Question 20. Which is a distinguished differing approach in econometrics?

(a). Cowles commission.
(b). Vector autoregression.
(c). LSE.
(d). All of the above.

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Econometrics Quiz

Question 21. Following are the methodology of econometrics..?

(a). Experimental economics.
(b). Instrumental variables.
(c). Structural econometrics.
(d). All of the above.

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Question 22. The three key ingredients of econometrics are..?

(a). Economic theory.
(b). Economic data.
(c). Statistical method.
(d). All of the above.

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Question 23. The main importance of econometrics is..?

(a). Forecasting.
(b). Data analysis.
(c). Data gathering.
(d). All of the above.

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Question 24. Apart from regression model, econometrics relies on..?

(a). Null hypothesis.
(b). Data testing.
(c). Data interpretation.
(d). All the above.

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Question 25. Who have received Noble Prize in the field of economic….?

(a). Ragnar Frisch.
(b). Lawrence Klein.
(c). Simon Kuznets.
(d). All of the above

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Question 26. Which is a branch of econometrics?
(a). Theoretical econometrics.
(b). Applied econometrics.
(c). Both a and b.
(d). No branches.

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Also read: JRF Multiple Choice Questions

What are some books written on econometrics?

  • Agricultural Prices and Commodity Market Analysis John N. Ferris
  • Applied Econometrics Time Series Walter Enders
  • Businesses Forecasting With CD J. Holton Wilson and Barry Keating
  • Basic Econometrics Damodar N. Gujarati
  • Econometrics Analysis William H. Greene
  • Cost-Benefit Analysis: Concepts and Practice Anthony E. Boardam
  • Essentials of Econometrics Damodar Gujarati
  • Introductory Econometrics: A Modern Approach Jeffrey M. Woodridge
  • Mostly Harmless Econometrics: An Empiricist’s Companion Joshua D. Angrist
  • Economic Development Michael P. Todaro
  • Introductory Econometrics for Finance Chris Brooks
  • Introduction to Econometrics James H. Stock and Mark W. Watson
  • Econometric Models and Economic Forecasts – Text Only Robert S. Pindyck and Daniel L. Rubinfeld
  • Economic Decision Analysis W. Fabrycky D. Verma and G. J. Thuesen
  • Forecasting: Methods and Applications Spyros Makridakis
  • Fundamental Methods of Mathematical Economics Alpha C. Chiang and Kevin Wainwright

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