Statistics for Economics Class 11 NCERT Solutions Chapter 1 Introduction
Question 1.
Mark the following statements as true or false.
(i) Statistics can only deal with quantitative data.
(ii) Statistics solves economic problems.
(iii) Statistics is of no use to Economics without data.
Answer:
(i) False Statistics deals with both quantitative data as well as with qualitative data. Qualitative data describes the attributes.
(ii) True Economists use Statistics as a tool to understand and evaluate an economic problem by analysing past data. Statistical tools help economists to identify causes of an economic problem and devise policies accordingly.
(iii) True Data is the raw material for economic analysis. Statistical analysis of economic variables cannot be undertaken without having any data.
Question 2.
Make a list of activities that constitute the ordinary business of life. Are these economic activities?
Answer:
The following are the activities that constitute the ordinary business of life
- Buying of goods and services.
- Rendering services to a company by employees and workers.
- Selling of goods and services.
- Production process carried out by a firm.
i.e.,
Question 3.
The government and policy makers use statistical data to formulate suitable policies of economic development’. Illustrate with two examples.
Answer:
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. Statistical data also help the government to ascertain the relationship between economic variables and form policies accordingly.
with
Question 4.
“You have unlimited wants and limited resources to satisfy them.” Explain by giving two examples.
Answer:
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.
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given
amount
Question 5.
How will you choose the wants to be satisfied?
Answer:
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.
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Question 6.
What are your reasons for studying Economics?
Answer:
Human wants are unlimited and resources to satisfy these wants are limited and these limited resources have alternative uses. 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
(i) 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.
money
say,
10,000,
Question 7.
Statistical methods are no substitute for common sense. Comment.
Answer:
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. The statistical data may involve personal bias or may be subject to manipulations for one’s own selfish motive.
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cannot
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