Mathematical Economics Set 4
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This set of Mathematical Economics Multiple Choice Questions & Answers (MCQs) focuses on Mathematical Economics Set 4
Q1 | Homoscedasticity means------ for disturbances
- equal mean
- equal variance
- zero mean
- none of the above
Q2 | The literal meaning of econometrics is
- estimation
- economic measurement
- forecasting
- testing
Q3 | Economic theory makes statements that are mostly
- quantitative
- qualitative
- positive
- none of the above
Q4 | In the function, Q= α+βP, the intercept coefficient is
- α
- β
- p
- q
Q5 | Heteroscedasticity implies
- equal spread
- unequal spread
- equal mean
- equal variance
Q6 | Given any two X values the classical linear regression model assumes the correlationbetween the disturbances as
- one
- infinity
- negative
- zero
Q7 | which is the dependent variable in the Keynesian consumption function
- income
- consumption
- price
- output
Q8 | in the regression context, the OLS estimators are BLUE according to
- central limit theorem
- gauss markov theorem
- young theorem
- fisher’s theorem
Q9 | The summary measure used to measure the goodness of fit of a regression line
- coefficient of determination
- coefficient of variation
- standard error d standar
- deviation
Q10 | The numerical value of coefficient of determination lies between
- -1 and 1
- 0 and 1
- -∞ to +∞
- -∞ to 1
Q11 | The classical theory of statistical inference consists of
- estimation and hypothesis testing
- regression and correlation
- averages and dispersion
- none of the above
Q12 | The rejecting of a true hypothesis is called
- type i error
- type ii error
- standard error
- point estimation
Q13 | Which of the following is used to measure the degree of association between twovariables
- coefficient of determination
- coefficient of correlation
- standard error d standar
- deviation
Q14 | The accepting of a false hypothesis is called
- type i error
- type ii error
- standard error
- point estimation
Q15 | The larger the standard error, the ----- the width of the confidence interval
- smaller
- larger
- infinity
- cannot calculate
Q16 | -βrepresents:
- Diminishing returns to scale
- Increasing returns to scale
- Constant returns to scale
- None of the above
Q17 | _____ is the best criteria to judge the validity of a model :
- Assumptions
- Information it provides
- Its simplicity
- predictive power
Q18 | The given function f (x) = ax + b, is an example of ____ function:
- quadratic
- polynomial
- linear
- rational
Q19 | The given function f (x) = ax2+ bx + c , is an example of ____ function:
- quadratic
- polynomial
- linear
- rational
Q20 | For a utility function u = xy + 3x + 4y, marginal utility of good x is:
- xy + 3x + 4y
- y + 3
- x + 4
- y + 3x
Q21 | Given a consumption function C = 250 + 0.75Yd, autonomous consumption is ____
- 0.75
- 0
- 250
- -0.75
Q22 | For a total cost function TC = 1.5Q2+ 4Q + 46, MC is :
- 1.5Q + 4 +
- 1.5Q + 4
- 1.5Q
- 4Q + 46
Q23 | Abstraction from reality is made based on :
- assumptions
- prediction
- theory
- hypothesis
Q24 | ____ is a simplified description of reality, designed to yield hypothesis about economicbehaviour that can be tested.
- theory
- postulate
- proposition
- economic model
Q25 | ____ models are mathematical models designed to be used with data.
- Empirical
- Visual
- Mathematical
- Simulation