STATISTICS FOR ECONOMICS CLASS: XI
Chapter 1: INTRODUCTION IMPORTANT CONCEPTS:
1. Meaning of Statistics in plural sense – It is a collection of numerical facts.
2. Meaning of Statistics in Plural Sense – It deals with the collection, presentation, analysis and interpretation of quantitative information.
3. Definition of statistics in Plural Sense – It means aggregate of facts affected to a marked extent of multiplicity of causes numerically expressed, enumerated or estimated according to reasonable standard of accuracy, collected in a systematic manner for predetermined purpose and placed in relation to each other.
4. Consumer – A person who buys goods and services for the satisfaction of human wants. 5. Producer – A person who produces goods.
6. Service holder – A person who is working or in a job and gets paid for it.
7. Service Provider – A person who gives services to others for a payment.
8. Economic activity – Activities undertaken for monetary gain or to earn income.
9. Economics is divided into three parts:
10. Consumption: In consumption, we study wants, their origin, nature and characteristics and the laws governing them.
11. Production: It refers to all activities which are undertaken to produce goods and services for generation of income and satisfaction of wants.
12. Distribution: Economic activity which studies how income generated from the production process is distributed among the factors of production.
13. Data: Economic facts in terms of numbers.
14. Importance of Statistics: Statistics is widely used in many fields.
a] Importance to the Government – Statistics is used in administration and efficient functioning of departments. It collects data to fulfill its welfare objectives.
b] Importance of Statistics in Economics:
1] Statistics helps in making economic laws like law of demand and concept of elasticity. 2] It helps in understanding and solving economic problem.
3] It helps in studying market structure.
4] It helps in finding mathematical relations between variables.