Module 1 : Importing Data Files

Question 1

What are Data Files?

Answer 1

1. Its a file that stores datasets.

Question 2

Are there many types of formats for datafiles?

Answer 2

YES

Question 3

What is the most universal fromat for data files and why is it considered the most universal

Answer 3

Text format is the universal format due to it being readable by all software.

Question 4

What are datasets?

Answer 4

A collection of observed variables

Question 5

What are missing values?

Answer 5

1. These are missing observations in a dataset
2. Usually in a data file when there are missing values they are often represented by special characteristics.

Question 6

What is text file?

Answer 6

Its a ‘non-formatted file’ that can be opened by any text editor.

Question 7

What are the common extensions for text files?

Answer 7

1. .txt
2. .csv

Question 8

What is a time series?

Answer 8

Its a variable that :
1. We observe on a regular basis
2. At different points in time

Question 9

What’s an example of a time series?

Answer 9

temperature in Toronto on a daily basis

Question 10

Whats a variable

Answer 10

Its used as a general term to describe some sort of measurement or measure

Question 11

Whats an example of a variable?

Answer 11

Unemployment rate, inlfation rate, temperature, Co2 emissions

Question 12

What is ‘macroeconomics’?

Answer 12

1. Its the study of the economy as a whole.

Question 13

Why is macreconomics difficult?

Answer 13

Its diffcult as it needs to draw from all branches of economics in order to understand:

1. Microeconomic decisions
2. Aggregation of individual behavior
3. Link between theory and data
4. design of government polict

Question 14

What types of questions does macroeconomics answer?

Answer 14

1. Why is there poverty, unemployment, inequality?
2. What are the causes/consequences of business cycles
3. WHat is the role of financial markets + Intermediaries?
4. What is the impact of economic policy?

Question 15

Whats the first thing we need to do to answer these economic questions?

Answer 15

We need to understand the data given.

Question 16

How do we understand the ‘data given’?

Answer 16

1. We need to understand and address the measurement issue.
2. Also be able to distinguish the different types of fluctuations.

Question 17

How do we understand the ‘measurement issue’.

Answer 17

1. Its less of a problem for micronomic issues because we study individual markets but for macroeconomic we look at the overall behavior of an economy which is the aggregated version of what we observe instead of at market level.
2. For us to be able to answer questions such as how do measure total production in an economy that produces thousands of different goods, and how do we measure the cost of living? –> We need to be able to understand the level of accuracy the different measures used to answer these questions as some of them are estimates obtained from incomplete information

Question 18

How do we understand the different flcutuaitons.

Answer 18

1. We ned to understand the different types of fluctuations observed in the data because they show different consequences on the overall economy.
2. We ned to be able to look at the different components of the series specifically the fluctuations and see how they have different consequences and different policy implications.
3. We should be able to isolate them