5.0-8.0

Question 1

It means Economic Measurement

Answer 1

Econometrics

Question 2

Measuring and analyzing any economic phenomenon using some statistical or mathematical technique

Answer 2

Econometrics

Question 3

It is used to
*Estimate the magnitude of quantitative relationships among economic variables
*Test economic Hypotheses
*Forecast future outcomes

Answer 3

Econometrics

Question 4

It was used for 3 reasons

Answer 4

*Estimate the magnitude of quantitative relationships among economic variables
*Test economic Hypotheses
*Forecast future outcomes

Question 5

What are the 2 components of Econometrics?

Answer 5

Theoretical & Applied Econometrics

Question 6

Their primary function is to test whether the already existing procedures and statistical tests are sufficient to bring and/or predict any possible economic unknowns.

Answer 6

Theoretical Econometrics

Question 7

It relies heavily on mathematics, theoretical statistics, and numerical methods to prove that the new procedures have the ability to draw correct inferences.

Answer 7

Theoretical Econometrics

Question 8

Use econometric techniques developed by the theorists to translate qualitative economic statements into quantitative ones.

Answer 8

Applied Econometrics

Question 9

A simplified description of reality, designed to yield hypotheses about economic behavior that can be tested.

Answer 9

Economic Model

Question 10

It is necessarily subjective in design because there are no objective measures of economic outcomes.

Answer 10

Economic Model

Question 11

Constructed from economic data with the aid of the techniques of statistical inference

Answer 11

Econometric Model

Question 12

These models are usually based on economic theories that assume optimizing behavior on the part of economic agents.

Answer 12

Econometric Model

Question 13

It used Economic data.

Answer 13

Econometric Models

Question 14

Refer to observations of many different individuals (subjects, objects) at a given time, each observation belonging to a different individual.
Ex: The Gross Domestic Product of a country

Answer 14

Cross-Sectional Data

Question 15

It is a collection of observation (behavior) for a single subject (entity) at different time intervals

Answer 15

Time Series data

Question 16

Data over different years but from different cross sections.
Ex: house prices in two periods but not the same houses are sold

Answer 16

Pooled Cross Sections Data

Question 17

Data from many units, over many points in time.
Ex: employment across individuals over time

Answer 17

Panel Data

Question 18

What are the 4 types of Economic Data

Answer 18

Cross Sectional Data
Time Series Data
Pooled Cross Sections Data
Panel Data

Question 19

Relationships in Econometrics

Answer 19

1. Causation
2. Correlation

Question 20

It indicates that one event is the result of the occurrence of the other event

Answer 20

Causation Relationship

Question 21

is a statistical measure that indicates how two or more variables move together

Answer 21

Correlation Relationship

Question 22

Describes the size and direction of a relationship between two or more variables.

Answer 22

Correlation Relationship

Question 23

This is also referred to as cause and effect

Answer 23

Causation Relationship

Question 24

It is the starting point of econometric analysis

Answer 24

Linear Regression

Question 25

It has a dependent variable that is a continuous variable, while the independent variables can take any form (continuous, discrete, or indicator variables).

Answer 25

Linear regression

Question 26

The 2 classifications of Linear Regression

Answer 26

1. Simple linear regression 2. Multiple Linear Regression

Question 27

is seen to slope higher because providers are prepared to create more when prices rise .

Answer 27

Supply

Question 28

is thought to slope downward since customers tend to buy less when prices are greater.

Answer 28

Demand

Question 29

It displays the amounts of a certain commodity or service that consumers will be able and willing to buy at each price throughout a given time frame.

Answer 29

Demand curve

Question 30

It displays the volume of goods that merchants will put up for sale at each price during that time.

Answer 30

Supply Curve

Question 31

outlines the quantity of goods a provider is prepared and ready to give the market at particular price points over a specific time frame.

Answer 31

Supply slope

Question 32

shows exactly how many units of a good or service will be purchased at various price points.

Answer 32

Demand Slope

Question 33

Is the quantity of a commodity that people are willing to buy at a particular price at a particular point of time.

Answer 33

Quantity Demanded

Question 34

refers to a specific point on that curve, where a certain price is associated with a certain quantity.

Answer 34

Quantity demanded

Question 35

defined as the total amount of a good or service that producers and suppliers are willing and able to sell at a given price in a given period of time.

Answer 35

Quantity Supplied

Question 36

states that as prices rise, customers buy less.

Answer 36

Law of Demand

Question 37

says that when prices rise, companies see more profit potential and increase the supply of goods and services.

Answer 37

Law of Supply

Question 38

Occurs at the point where the aggregate demand meets the aggregate supply.

Answer 38

Equilibrium

Question 39

is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period.

Answer 39

Gross Domestic Produce

Question 40

As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country’s economic health.

Answer 40

Gross Domestic Product

Question 41

is an assessment of economic production in an economy that includes current prices in its calculation.

Answer 41

Nominal GDP

Question 42

An inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year.

Answer 42

Real GDP