Question 1

Studying inflation in the United States from 1970 to 2006 is an example of using&#10;A)randomized controlled experiments.&#10;B)time series data.&#10;C)panel data.&#10;D)cross-sectional data.

Accepted Answer

Studying inflation over a period of time requires analyzing a time series data, which is essentially a collection of observations taken at regular intervals over time. The other options, randomized controlled experiments, panel data, and cross-sectional data, involve different data structures and would not be appropriate for studying inflation over time.

Question 2

An example of a randomized controlled experiment is when&#10;A)households receive a tax rebate in one year but not the other.&#10;B)one U.S.state increases minimum wages and an adjacent state does not, and employment differences are observed.&#10;C)random variables are controlled for by holding constant other factors.&#10;D)some 5th graders in a specific elementary school are allowed to use computers at school while others are not, and their end-of-year performance is compared&#10;Holding constant other factors.

Accepted Answer

In a randomized controlled experiment, participants are randomly assigned to either a treatment group or a control group. In option D, some 5th graders are randomly allowed to use computers while others are not, making it a randomized controlled experiment.

Question 3

Panel data&#10;A)is also called longitudinal data.&#10;B)is the same as time series data.&#10;C)studies a group of people at a point in time.&#10;D)typically uses control and treatment groups.

Accepted Answer

Panel data is also known as longitudinal data because it involves studying a group of individuals over a period of time, typically collecting data from them at multiple points (i.e. longitudinal). Time series data refers to observing a single variable over a period of time, whereas panel data involves multiple variables and individuals. Control and treatment groups are often used in experiments, which do not necessarily involve panel data.

Question 4

Analyzing the effect of minimum wage changes on teenage employment across the 48 contiguous U.S.states from 1980 to 2004 is an example of using&#10;A)time series data.&#10;B)panel data.&#10;C)having a treatment group vs.a control group, since only teenagers receive minimum wages.&#10;D)cross-sectional data.

Accepted Answer

The study is analyzing changes in minimum wage and their effect on teenage employment across multiple states over a period of time. This requires the use of panel data, which involves following the same group of individuals or entities over time while also considering cross-sectional differences between different groups or entities. Time series data refers to analyzing changes over time for a single entity or group, and cross-sectional data only considers differences between groups at a single point in time. The study does not necessarily involve a treatment and control group, as minimum wage changes affect all workers in a particular state, not just teenagers.

Question 5

Econometrics can be defined as follows with the exception of&#10;A)the science of testing economic theory.&#10;B)fitting mathematical economic models to real-world data.&#10;C)a set of tools used for forecasting future values of economic variables.&#10;D)measuring the height of economists.

Accepted Answer

Econometrics does not involve measuring the height of economists. Instead, it involves the application of statistical methods to economic data in order to test and refine economic theories, estimate causal relationships, and make predictions about future economic trends.

Question 6

To provide quantitative answers to policy questions&#10;A)it is typically sufficient to use common sense.&#10;B)you should interview the policy makers involved.&#10;C)you should examine empirical evidence.&#10;D)is typically impossible since policy questions are not quantifiable.

Accepted Answer

In order to provide quantitative answers to policy questions, it is necessary to examine empirical evidence. This may involve analyzing data, conducting experiments, or performing other forms of research. Common sense and interviews with policy makers may provide useful insights, but empirical evidence is necessary for producing accurate and reliable quantitative answers. Policy questions can often be quantified through measures such as cost-benefit analysis, impact assessments, and performance metrics.

Question 7

Ideal randomized controlled experiments in economics are&#10;A)often performed in practice.&#10;B)often used by the Federal Reserve to study the effects of monetary policy.&#10;C)useful because they give a definition of a causal effect.&#10;D)sometimes used by universities to determine who graduates in four years rather than five.

Accepted Answer

Ideal randomized controlled experiments in economics are useful because they give a definition of a causal effect. Option A is incorrect because ideal randomized controlled experiments in economics are often difficult to perform in practice. Option B is incorrect because while the Federal Reserve may conduct experiments, they are not limited to randomized controlled experiments. Option D is incorrect because experiments to determine who graduates in four years rather than five are not relevant to causal effects in economics.

Question 8

Most economic data are obtained&#10;A)through randomized controlled experiments.&#10;B)by calibration methods.&#10;C)through textbook examples typically involving ten observation points.&#10;D)by observing real-world behavior.

Accepted Answer

Economic data is obtained by observing real-world behavior, meaning by collecting and analyzing data from actual economic activities and transactions that occur in the real world. Randomized controlled experiments and calibration methods are more commonly used in other fields such as science and engineering, but not as often in economics. Textbook examples with only ten observation points are unlikely to provide a comprehensive or representative sample of economic data.

Question 9

Analyzing the behavior of unemployment rates across U.S.states in March of 2006 is an example of using&#10;A)time series data.&#10;B)panel data.&#10;C)cross-sectional data.&#10;D)experimental data.

Accepted Answer

The answer of Analyzing the behavior of unemployment rates across...

Question 10

The accompanying graph   is an example of&#10;A)experimental data.&#10;B)cross-sectional data.&#10;C)a time series.&#10;D)longitudinal data.

Accepted Answer

The answer of The accompanying graph   is an...

Question 11

Give at least three examples from economics where each of the following type of data&#10;can be used: cross-sectional data, time series data, and panel data.

Accepted Answer

The answer of Give at least three examples from economics...

Deck 1: Economic Questions and Data