Chapter 19
1. Which of the following is a characteristic of a good research question?
a. A good research question should have policy implications.
b. A good research question should be constrained to macroeconomics.
c. A good research question should be backed by available information.
d. A good research question should be subjective and not objective.
2. Which of the following is a characteristic of a good research paper?
a. A good research paper should contain a review of relevant literature.
b. A good research paper should not have any published precedents.
c. A good research paper should always be useful for policy implications.
d. A good research paper should have more than one author.
3. Which of the following statements is true of an appropriate data set?
a. An appropriate data set should be collected from government registered websites.
b. An appropriate data set should have enough controls to do a reasonable ceteris paribus analysis.
c. An appropriate data set should not have time series units.
d. An appropriate data set should not be based on surveys.
4. The most flexible way to obtain data in electronic form is as a standard _____ file.
a. PDF
b. WMV
c. text (ASCII)
d. PPTX
5. Time series data should be stored:
a. with the earliest time period listed as the first observation, and the most recent time period as the
last observation.
b. with the earliest time period listed as the last observation, and the most recent time period as the
first observation.
c. with the time period in which the concerned variable takes the highest value listed as the first
observation, and the time period in which the concerned variable takes the lowest value as the last
observation.
d. with the time period in which the concerned variable takes the lowest value listed as the first
observation, and the time period in which the concerned variable takes the highest value as the last
observation.
6. Which of the following correctly identifies an advantage of entering data in a spreadsheet rather than
a text file?
a. Data in various websites is more often available as spreadsheets than as text files.
b. Different observations are more likely to be run together in spreadsheets than in text files.
c. Spreadsheets are readable on most computers, whereas text files are not.
d. Spreadsheets allow manipulation of data, whereas text files do not.
7. Which of the following statements is true?
a. To carry out OLS estimation, it is necessary that the error terms should be correlated with the
explanatory variables.
b. Measurement error and simultaneity are potential sources of endogeneity.
c. While entering data for a regression analysis, qualitative explanatory variables should be assigned
numerical values.
d. AR models are best suited for ordered responses.
8. Which of the following statements is true of stepwise regression?
a. In a stepwise regression, the dependent variable is regressed on each independent variable
individually with an attempt to understand the effect of each independent variable on the dependent
variable.
b. In a stepwise regression, the dependent variable is regressed on different combinations of the
independent variable with an attempt to come up with the best model.
c. In a stepwise regression, the dependent variable can take up binary values only while the explanatory
variables can take up quantitative values.
d. In a stepwise regression, the dependent variable can take up quantitative values while the
explanatory variables can take up only binary values.
9. Which of the following statements is true?
a. Graphs should be avoided while introducing a research paper’s topic.
b. The introduction to a research paper should be longer than the conclusion to the research paper.
c. The summary of a research paper can be presented in the introduction of a research paper.
d. Statistics should be avoided in introductions for research papers.
10. Which of the following statements is true?
a. OLS is a model, whereas feasible GLS is an estimation method.
b. OLS is an estimation method, whereas feasible GLS is a model.
c. Both OLS and feasible GLS are models.
d. Both OLS and feasible GLS are estimation methods.
11. Which of the following statements is true?
a. A model shows the estimated parameters of the explanatory variables.
b. A model represents a population relationship.
c. In an empirical paper, the estimation methods should be discussed before specifying a model.
d. The methods for estimating a model are same as the model itself.
12. Which of the following highlights a requirement of a good instrumental variable?
a. It should be included in and endogenous to the equation of interest.
b. It should be included in and exogenous to the equation of interest.
c. It should be omitted from and exogenous to the equation of interest.
d. It should be omitted from and endogenous to the equation of interest.
13. Which of the following statements is true?
a. If a model has several explanatory variables and several variations to the general model are to be
presented, it is better to report the results in an equation form, rather than a tabular form.
b. If a model has several explanatory variables and several variations to the general model are to be
presented, it is better to report the results in a tabular form, rather than an equation form.
c. The adjusted R-squared should always be listed in the result section of a research paper, while the R-
squared may or may not be listed.
d. The number of observations for each equation should always be listed in the result section of a
research paper, while the R-squared may or may not be listed.
14. Which of the followings statements is true?
a. The title of a research paper should be mentioned only in the introduction section.
b. The title page should not include any other information except the title of the research paper.
c. Graphs and tables should be included in the main body only.
d. All equations should begin on a new line and should be numbered consecutively.
15. Which of the following statements is true?
a. If standard errors are too large or too small, they should be reported in scientific notation.
b. If coefficients are too large or too small, they should be reported in scientific notation.
c. While reporting figures, the number of digits after decimals should be limited.
d. The list of references used should be reported in the appendix.
16. A good research question should not be backed by time series data.
17. Historical data sets are available only in printed form.
18. The practice of data mining is consistent with the assumptions made in econometric analysis.
19. Instrumental variables can be used to solve misspecification errors related to omitted variables.
20. Sensitivity analysis is restricted to natural sciences.