1. Which of the following questions is a type that tools of econometrics are mea
ID: 1137380 • Letter: 1
Question
1. Which of the following questions is a type that tools of econometrics are meant to answer? a. If an income increase causes the sales of good A to fall, everything else held constant, what type of good is good A? b. If goods A and B are substitutes and the price of good A increases by $0.50, by how much will the sales of good B change by? c. Everything else the same, would the price of good A be higher in a competitive industry or a monopolistic industry? d. If goods A and B are substitutes and the price of good A increases, how will this affect the demand for good B? 2. Suppose you wish to study the effect on employment of the increase in the minimum wage in Edmonton and you use employment in Calgary as a control group since there was no increase in the minimum wage there. The type of data you would be analyzing is called data. a. Random b. Pure-Experimental c. Survey d. Quasi-Experimental 3. A data set that has observations on one entity at multiple points in time is classified as a. Time series data b. Panel data C. Cross-section data d. Flow data 4. A data set containing the number of adults with college degrees in each of the US states in 2009 is data a. panel b.time series c. cross-section d. flow 5. Which of the following is NOT generally included in the study of econometrics? a. Using economic data to estimate relationships b. Developing new economic relationships. C. Predicting economic outcomes. d. Testing economic hypothesesExplanation / Answer
1. b. If A and B are substitutes and price of good A increases by $0.5, by how much would the sale of good be changed by. The other options could be answered by using basic principles of economics, whereas in this case, Econometrics is to be used to find out the exact quantitative change.
2. d. Quasi-Experimental Data
3. b. Time series data
4. c. cross-section data
5. b. Developing new economic relationships.
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