Quantitative Methods For Economic Analysis 1 Set 5
On This Page
This set of Quantitative Methods for Economic Analysis 1 Multiple Choice Questions & Answers (MCQs) focuses on Quantitative Methods For Economic Analysis 1 Set 5
Q1 | A ______ is a value that may change within the scope of a given problem or set ofoperations
- constant
- variable
- function
- exponent
Q2 | __________ variable is a factor that is not itself under study but affects the measurementof the study variables or the examination of their relationships.
- exogenous
- endogenous
- extraneous
- dependent
Q3 | An index number is used:
- to measure changes in quantity
- to measure changes in demand
- to measure changes in a variable over time
- to measure changes in price
Q4 | The ratio of a new price to the base year price is called the:
- price absolute
- price decrease
- price increase
- price relative
Q5 | A simple aggregate quantity index is used to:
- measure the change in price of a product
- measure the change in quantity of a product
- measure the overall change in quantity of a range of products
- measure the overall change in price of a range of products
Q6 | A simple aggregate price index:
- ignores relative quantities
- compares relative quantities to relative prices
- considers relative quantities
- compares absolute prices to absolute quantities
Q7 | This index measures the change from month to month in the cost of a representative‘basket’ of goods and services of the type bought by a typical household
- paasche price index
- retail price index
- laspeyres price index
- financial times index
Q8 | The Laspeyres and Paasche index are examples of:
- weighted price index only
- aggregate index numbers
- weighted index numbers
- weighted quantity index only
Q9 | The Laspeyres price index:
- regards the current year quantities as fixed
- regards the base year quantities as fixed
- regards the base year prices as fixed
- regards the current quality as fixed
Q10 | A scaling factor is used to:
- change a simple index to a weighted index
- convert the paasche index to a laspeyres index
- change an aggregate index to a weighted index
- change the base year
Q11 | The distinctive feature of the ______ index is that it uses a group of commoditiespurchased in the base period as the basis for comparison
- paasche’s
- laspeyres
- fisher’s
- dorbish-bowley
Q12 | ________was developed to measure changes in the cost of living in order to determinethe wage increases necessary to maintain a constant standard of living.
- price index
- sensex
- correlation
- regression
Q13 | ____________ measure of living costs based on changes in retail prices
- correlation
- whole sale price index
- consumer price index
- regression
Q14 | Paasche index was developed by ______economist Hermann Paasche for measuringcurrent price or quantity levels relative to those of a selected base period
- american
- british
- australian
- german
Q15 | The ratio-moving-average procedure can be used to deseasonalize data
- true
- false
- either of the above
- none of the above
Q16 | The weighing factor, used in the exponential smoothing method, is always a numberbetween ______
- zero and ten
- five and ten
- zero and one
- zero and negative one
Q17 | A moving average of a time series is the value around which a series moves over time.
- true
- false
- either of the above
- none of the above
Q18 | In a time series analysis it is often important to analyze seasonal variations
- true
- false
- either of the above
- none of the above
Q19 | The index number for the price of a good in 2002 was 142 and in 2003, it was 148.5, ona base year of 1994. What is the percent increase in price of gasoline from 2002 to 2003
- 4.377%
- 4.577%
- 95.62%
- 6.5%
Q20 | Which one of the following is not a component of the multiplicative time series model?
- trend
- irregular variation
- regression trend
- seasonality
Q21 | Which of the following is not a component of the multiplicative time series model?
- trend analysis
- seasonal variation
- cyclical variation
- regressive variation
Q22 | The time series component that indicates a steady increase or decrease over time isknown as a ____________
- order
- pattern
- trend
- seasonality
Q23 | A pattern in a times-series model that occurs over a duration of more than a year iscalled a ___________ variation
- trend
- seasonal
- cyclical
- regressive
Q24 | Which two components are smoothed out by the moving average
- seasonality and irregular
- cyclicality; seasonality
- variability: randomality
- randomality; seasonality
Q25 | If a value is missing in a time series we can do one of the following
- just copy the previous value
- estimate it as an average between two neighbouring values
- take the overall mean as the best estimate of it
- ignore it