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This set of Mathematical Economics Multiple Choice Questions & Answers (MCQs) focuses on Mathematical Economics Set 1
Q1 | The intercept term,β1, is absent in.................. model.
- regression through the origin
- lin log model
- log lin model
- ols model
Q2 | The lin log model and log lin model are ............. in parameters.
- non linear
- linear
- functional
- dependent
Q3 | r2 in intercept less model is.... .............. negative.
- always
- sometimes
- never
- cannot say
Q4 | The slope coefficient ,β2, of ............ model measures elasticity of Y with respect to X.
- regression through the origin
- log log model
- log lin model
- clrm
Q5 | ....................... is a growth model.
- alinear trend model
- lin log model
- log lin model
- none of the above
Q6 | In regression through the origin model, ......................... is absent.
- the intercept term ,β1
- the slope coefficient ,β2
- error term
- explanatory variables
Q7 | Econometrics is concerned with
- empirical support to economic theory
- quantitative analysis of economic data
- use of tools of mathematics and statistical inference
- all of the above
Q8 | Which of the following is the combination of economic theory, mathematical economics andeconomic statistics
- econometrics
- statistics
- mathematics
- quantitative economics
Q9 | The first step in traditional econometric methodology is
- statement of theory
- forecasting
- obtaining data
- estimation of the model
Q10 | Which of the following discipline express the economic theory in mathematical form
- econometrics
- statistics
- mathematics
- mathematical economics
Q11 | Keynes postulated ----- relationship between income and consumption
- negative
- positive
- non linear
- infinite
Q12 | In the function, Q= α+βP, the slope coefficient is
- α
- β
- p
- q
Q13 | In the Keynesian linear consumption function Y=β1+β2X, Y represents
- income
- consumption expenditure
- output
- price
Q14 | In the Keynesian linear consumption function Y=β1+β2X, β1 is
- slope coefficient
- intercept coefficient
- output coefficient
- none of the above
Q15 | In the Keynesian linear consumption function Y=β1+β2X, the parameters of the model are
- β1and β2
- . β1and x
- x and y d. y an
- β2
Q16 | In the Keynesian linear consumption function Y=β1+β2X, the marginal propensity toconsume is
- β1
- x
- y
- β2
Q17 | if the model has only one equation, the model is called
- single equation model
- multiple equation model
- variable equation model
- none of the above
Q18 | if the model has more than one equation, the model is called
- single equation model
- multiple equation model
- variable equation model
- none of the above
Q19 | In the Keynesian linear consumption function Y=β1+β2X, the dependent variable is
- β1
- x
- y
- β2
Q20 | In the Keynesian linear consumption function Y=β1+β2X, the explanatory variable is
- β1
- x
- y
- β2
Q21 | the variable appearing on the left side of the equality sign is called
- dependent variable
- independent variable
- explanatory variable
- none of the above
Q22 | In conventional model r2 is .............. negative.
- always
- sometimes
- never
- cannot say
Q23 | the variable appearing on the right side of the equality sign is called
- independent variable
- explanatory variable
- all of the above
- none of the above
Q24 | independent variables are also known as
- explanatory variables
- dependent variable
- implicit variable
- static variable
Q25 | which is the explanatory variable in the Keynesian consumption function
- income
- consumption
- price
- output