Chapter Notes - Introduction (Statistics for Economics) Notes | Study Economics Class 11 - Commerce

STATISTICS FOR ECONOMICS  CLASS:  XI  

Unit I  

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:  

a] Consumption 

b] Production 

c] Distribution  

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.