Test: Introduction To Statistics - 1 - Commerce MCQ

Correct Answer: D

Explanation: All the statements are correct.

• Statistics in economics focuses on numbers and is primarily quantitative. Qualitative terms like rich, poor, or tall do not hold significance in statistical analysis.
• Statistics provides tools for predicting future values.
• It primarily deals with quantitative data, making it less effective for qualitative aspects like beauty or honesty.
• It is essential for understanding and analysing economic issues, including:
  - Production
  - Consumption
  - Pricing
  - Income distribution
  - Population
  - Unemployment
  - Poverty

There should be free education given to poor. This is an example of normative science because it focuses on what ought to be done.

Key points include:

• Normative science addresses opinions and values.
• It suggests ideal policies for societal improvement.
• Free education is viewed as a moral obligation to support the underprivileged.

In essence, this concept advocates for equitable access to education for all.

Persons engaged in a particular job are referred to as service holders. This term is used to describe individuals who:

• Work for someone else
• Receive payment for their services
• Are employed in various roles

In summary, a service holder is someone who is employed and compensated for their work.

• Consumption refers to the act of purchasing goods to meet various needs. It is a key concept in economics.
• It contrasts with investment, which focuses on spending for future income.
• In economics, consumption is defined as the use of goods and services by households.
• It is important to differentiate consumption from consumption expenditure, which specifically refers to the purchase of goods and services for household use.

The examples of scarcity include:

• Long queues at railway booking counters
• Crowded buses and trains
• Shortage of essential commodities

These situations arise because the resources available to meet our wants are limited. In contrast, sunlight is abundant and does not represent scarcity.

In singular sense, the term statistics refers to statistical methods.

Statistics is considered an applied science because it involves practical applications of statistical techniques to solve real-world problems.

Key points about statistics include:

• It focuses on the collection, analysis, interpretation, and presentation of numerical data.
• Statistics is essential for making informed decisions in various fields, including economics.
• It helps in summarising large amounts of data into meaningful information.

In summary, statistics plays a crucial role in understanding and addressing practical issues through its methods and applications.

Qualitative expressions are often outside the scope of statistics unless they are expressed in quantitative terms.

Qualitative data, such as beauty or intelligence, cannot be measured directly. Here’s how qualitative information can be transformed into a statistical context:

• Qualitative attributes can be described in degrees, such as better/worse or sick/healthy.
• These attributes are systematically collected and stored, similar to quantitative data like prices or incomes.
• Statistics involves the collection, presentation, and analysis of both qualitative and quantitative data.

In summary, while qualitative expressions are important, they gain statistical relevance when expressed in a measurable, quantitative format.

A farmer is a person involved in agriculture, raising living organisms for food or raw materials. Therefore, he is a producer.

A shopkeeper is someone who owns or operates a shop and sells various items. Hence, he is a seller.

A service holder is an individual who works under someone else, making him an employee. Conversely, the service provider is the one who offers jobs, known as the employer.

A service provider is typically a company that offers various services, such as consulting, legal advice, and transportation. For example, a cab driver is a type of service provider.

A producer is someone who creates goods for consumption. This process of adding value to raw materials is referred to as production.

Economics is typically divided into three main areas:

• Consumption: This involves studying how consumers decide what to buy based on their income and the prices of goods.
• Production: This focuses on how producers determine what and how much to manufacture for the market.
• Distribution: This examines how the total income generated from production, known as Gross Domestic Product (GDP), is allocated among wages, profits, and interest.

While these three areas are central to the study of economics, the concept of investment is not typically classified as a separate category within this framework.