MP Board Class 11th Economics Important Questions Unit 1 Statistics for Economics Introduction
Statistics for Economics Introduction Important Questions
Statistics for Economics Introduction Objective Type Questions
Choose the correct option:
Arthashashtra originated in:
(a) 17th century
(b) 18th century
(c) 19th century
(d) None of the above.
(b) 18th century
“Economics is the study of economic welfare” who said this:
(b) Prof. Pigou
(c) J. K. Mehta
He is known as father of statistics:
(c) Gottfried Achenwall
(d) None of these.
(c) Numerical data
(d) None of these.
Name of the book by Kautilya:
(c) Krishna, Valmiki and Vashista
(d) None of these.
Fill in the blanks:
- Adam Smith is known as …………………………. of Economics.
- There is difference between wants and …………………………..
- Collection is an example of ……………………….
- Statistics is an art as well as ………………………..
- When six economists gather they have …………………………. opinion.
Match the columns:
State true or false:
- There are limited wants of humans.
- “Principles of Economics” is written by Pigou.
- Statistical data is numerical data.
- Statistics is not important in speculation market.
- Rules of economics are universal.
Answer in one word:
- According to Marshall, Economics is what type of science?
- Who wrote the book, “Discovery of Nation’s Wealth and Reasons”?
- What is statistics in singular?
- Who gave analytical definition of economics?
- From which language statistics has been derived?
- Adam Smith
Statistics for Economics Introduction Very Short Answer Type Questions
What are economic goods?
The goods which are made by humans are called economic goods.
Who is propagator of modern economics?
The propagator of modem economics is Prof. Marshall.
Who is known as service provider?
The person who works for others for remuneration is called service provider.
Who is known as service man?
The person who keep others to do his work for remuneration is called service man.
What is economic activity?
Activities which are performed to earn wealth are called economic activities.
What is economic interest?
The problem of selection during the situation of scarcity is called economic interest.
Why are you not successful in fulfilling your own wants?
Because we are having limited resources available compared to the resources required.
What is gross domestic product?
That income which is received through production in the nation is called gross domestic product.
What are non – economic goods?
Those goods which can be achieved without any labour and expenses is called non – economic goods.
Which measures have been called as policy in economics?
Those measures are called as policies in economics which helps in solving any economic problem.
Define economics in the words of Marshall?
According to Marshall, “economics is the study of man in the ordinary business oflife.”
Define a consumer?
A consumer is one who consumes goods and services for the satisfaction of his wants.
Production is the process of converting raw material into useful thing.
Consumption’s the process of using up utility value of goods and services for the direct satisfaction of our wants.
Distributing national income as wages, rent, interest and profit is called distribution.
Economics is the study of mankind in the ordinary business of life, it examines that part of individual and social action which is mostly connected with attainment and with the use of the material requisites of well being.
Define statistics in singular sense?
It refers to techniques on methods relating to collection, classification, presentation analysis and interpretation of quantitative data.
Define statistics in plural sense?
Statistics refers to information in terms of numbers or numerical data such as: population, statistics, employment statistics etc.
Statistics for Economics Introduction Short Answer Type Questions
“The government and policy makers use statistical data to formulate suitable policies of economic development.” Illustrate with two examples?
The statistical data provide the base for the government and the policy makers to formulate policies. The statistical data not only help them to analyse and evaluate the outcomes of the past policies but also assist them to take corrective measures and to formulate new policies.
1. National output:
National output, then it formulates its investment expenditure policy based on the capital output ratio in the past few years. The previous data of inflation and economic growth are taken into consideration for estimating the money supply required in the next period.
2. Monetary Policy:
Monetary policy is referred to as either being expansionary or contractionary. Expansionary policy is when a monetary authority uses its tools to stimulate the economy. An expansionary policy increases the total supply of money in the economy more rapidly than usual. It is traditionally used to try to combat unemployment in a recession by lowering interest rates in the hope that easy credit will entice businesses into expanding.
Also, this increases the aggregate demand (the overall demand for all goods and services in an economy), which boosts growth as measured by gross domestic product (GDP). Expansionary monetary policy usually diminishes the value of the currency, thereby decreasing the exchange rate.
“You have unlimited wants and limited resources to satisfy them.” Explain by giving two examples?
The problem of scarcity is the most basic economic problem. Human wants are unlimited and resources to satisfy these wants are limited and these limited resources have alternative uses. ‘Scarcity of resources’ implies that there are unlimited wants to be fulfilled by limited resources.
Which leads to lesser supply of resources as compared to demand for them. The basic concern of an economy is to allocate the scarce resources to the best possible use in order to satisfy maximum wants.
1. In macro level:
An economy endowed with a given level of resources has to make a choice between the production of capital goods and consumer goods. The choice of the economy (i.e. what to produce and in what quantities) depends on the need of the economy. While the production of consumer goods will hamper the capital formation in the country for future production, the production of capital goods will not provide sufficient goods for consumption to the present population.
2. In micro Level:
The same problem of scarcity can be felt at an individual level. e.g., with a given amount of money say, Rs. 10,000, one cannot buy a refrigerator and a washing machine simultaneously. Thus, the individual needs to make a choice between the alternatives according to his/her priority.
How will you choose the wants to be satisfied?
An individual may have unlimited wants but these wants are in an order of priority according to their intensity. The wants of highest intensity will be fulfilled first as they provide the highest satisfaction or utility to the individual and hence, the individual attaches the top most priority to these wants.
Further, the choice of want also depends on the need or priority in the given situation, availability of the goods and services which can satisfy the wants and the purchasing power to realize a particular want.
What are your reasons for studying Economics?
The basic,concern of economics is to allocate the scarce resources to the best possible use in order to derive maximum benefit from the scarce resources. Due to the scarcity of resources having alternative uses, an economy needs to allocate the scarce resources to the areas with maximum possible and optimum returns. The following are the reasons that make the study of economics important:
1. To study the Consumer behaviour:
The theory of consumer behaviour in Economics deals with the study of the behaviour of the consumers in different types of market situations. This theory helps us understand how a rational consumer makes his/her decisions to get the maximum possible satisfaction in the given income and given prices of the goods and services.
2. To study the Production theory:
The theory of production studies the production decisions of the producers in different types of market. The theory explains how a producer takes production decisions related to maximisation of output in given cost or the minimisation of cost for a given level of output.
3. To study the Distribution of Income:
The study of Economics makes us aware about the distribution of national income. In other words, it tells us how the income arising from the total production in an economy is distributed in the form of wage, rent, interest and profit to different factor owners (like labour, land, capital and entrepreneur).
4. To study the Macroeconomic problems faced by an Economy:
Economics proves to be the most powerful tool to understand and analyse the root cause of basic macroeconomic problems faced by an economy like poverty, unemployment, inflation, recession etc.
Statistical methods are no substitute for common sense. Comment?
It is absolutely true that statistical methods are no substitute for common sense. Statistical data should not be believed blindly as they can be misinterpreted or misused. Statistical data and methods are subject to the errors committed by an investigator while surveying and collecting data. Thus, one should use his/her common sense while working with the statistical methods.
This point can be understand with the help of an example Ram a person who wanted to cross a river with his family but did not know how to swim. He knew the average depth of the river to be 125 cm. His height was 175cm, that of his wife was 152 cm and his two children measured 120 cm and 90 cm respectively in height.
He calculated the average height of his family and found it to be around 134 cm. He analysed that the average depth of the river was less than the average height of his family and concluded that they all could cross the river safely on foot. This resulted in drowning of his children. This example proves that common sense must supersede statistical methods.
Write characteristics of statistics as numerical data?
The main characteristics are as follows:
- It is an aggregate of facts
- It is expressed numerically.
- It is affected by multiplicity of courses.
- It is collected in a systematic manner.
- Statistics may be collected by enumeration.
Distinguish statistics in singular and plural sense?
The difference between statistics in singular and plural sense:
- In singular sense it is statistically analytical while in plural sense it is statistically consequential.
- In singular sense statistics is functional while in plural sense it is descriptive.
- In singular sense facts are aggregated and analyzed to reach to a conclusion while in plural sense it is aggregating facts.
“Statistics is defined as the science which deals with the analysis of statistical data?” Discuss?
In terms of singular sense statistics is that science which studies statistical methods. Analysis of data is important in these methods conclusion can not be reached with unrefined data so, it is essential to analyse datas. Datas are organized and after that it is properly analysed.
Distinguish between ‘quantitative’ and ‘qualitative’ data with examples?
The difference between Qualitative and Quantitative data:
- These refers to the data whose variables can be measured in numerical terms.
- E.g., price of commodities, heights, weights of individual etc.
- These refers to the data whose variables cannot be measured in numerical terms.
- Beauty of individuals, intelligence of individuals etc.
Explain the function of statistics?
The function of statistics are as follows:
1. Statistics deals with numerical facts only: statistics are numerically expressed.
2. Helps in formulation of plans and policies: Statistics helps in policy formulation in social and political field.
3. Increase in knowledge: Like other sciences statistics helps in increasing knowledge and experience.
4. Represents facts in comparable form: Statistical devices offer best way of comparison between two phenomena.
5. Makes complicated facts simpler: Statistics makes huge numerical data simple and easy to understand.
Discuss the role of statistics in economic planning?
Statistics are used in economic planning for the following purposes:
1. Statistical data help us in comparing the rate of development of one country with the rate of development of the other country.
2. The importance of consumption, production, distribution etc., can be known from available statistical data.
3. The success that a plan achieves is measured best by the use of statistical meth¬ods.
4. Statistical datas are used for knowing about the progress in the techniques of production, volume of production, imports, exports etc.
5. Planning involves fixation of targets and priorities. Targets which are fixed have to be achieved within a specific period of time. It will be possible only when data are available.
Discuss the rule of statistics in economics?
“The science of economic is becoming statistical in its method.” Explain?
“Statistics are straw out of which any other economist have to make bricks.” Discuss?
Statistics is useful in all the fields of economics viz., consumption, production, exchange, distribution and public finance. There are a number of economic laws which are evolved by statistical analysis viz., Engel’s law of family expenditure, Malthus theory of population etc. Presentation of economics law through diagrams, graphs etc., shows the application of statistical methods.
For finding out the solution of rising prices, growing population, unemployment, distribution of national income etc. one has to rely heavily on statistical methods. Most of the policies of economics would be in dark in the absence of appropriate statistical information. Statistical methods help not only in formulating economic policies but also in evaluating their effect.