ECO601 Midterm MCQs 2024 by Miss Mehwish

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ECO601 (Live Quiz)

1. Suppose we introduce a third variable which consists of the product of variables, X1 and X2. It will be called: Interaction term ✅ Lag independent model Dynamic model

2. a/2, n-k is the degree of freedom for:

Chi-square test t-test F-test ✅

3. Standardized Coefficients are often called:

Beta Coefficients ✅ Alpha Coefficients Gamma Coefficients Sigma Coefficients

4. In log level demand function InQg = a + bP, the coefficient 'b' will be interpreted as: One percent change in price is expected to change quantity demanded by 100/b units One unit change in price is expected to change quantity demanded by (b*100)% ✅ One percent change in quantity demanded is expected to change price by 100/b units One unit change in quantity demanded is expected to change price by (b*100)%

5. Upper portion of the diagonal in correlation matrix will be:

Opposite as lower portion. Mirror image of lower portion. ✅ Varying in values.

6. Linear equations are those equations which are linear in:

Variables Both Parameters and variables ✅ Parameters Intercept

7. Formula of standard error changes in all cases EXCEPT:

None of the given options Number of explanatory variable decreases Value Of t-statistic is greater than 1 ✅ Number of explanatory variable increases

8. Total variations are equal to:

Explained variations * Unexplained variations Explained variations + Unexplained variations ✅ Explained variations - Unexplained variations

9. Number of parameters in the following money demand function are:

Money Demand = 4) + 8; Income + {Price level + 8; Interest rate + e 4 ✅

Q10. If we want to show the dependent and independent variables in the same units then which one of the following is true?

Unstandardized the variables ✅ Normalized the variables

Standardized the variables

 Total revenue is represented by:

Price x Quantity ✅ Price + Quantity Price / Quantity Price — Quantity

 Autonomous consumption is an example of:

 Finding uncommon elements of the universal set in comparison to set A is called:

Complement of set A ✅ Union of set A and U Intersection of set A and U Distribution of set A and U

 The equation y=(17)xy = \left(\frac{1}{7}\right)^xy=(71)x is an example of:

Cubic function