Class 11 Economics Short Questions with Answers - Introduction (Statistics for Economics)

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Short Questions with Answers

Q.1. Name the two distinct senses in which statistics is used.
Ans. Statistics is used in two distinct senses:
(i) Singular Sense: It refers to the science of collecting, organizing, analyzing, and interpreting numerical data.
(ii) Plural Sense: It refers to numerical data or facts that are systematically collected and arranged.

Q.2. How is statistics defined in a singular sense?
Ans. In the singular sense, statistics refers to the methods used for:

• Collecting data
• Classifying data
• Presenting data
• Analysing data
• Interpreting data

These methods focus on quantitative data, which involves numerical information.

Q.3. How is statistics defined in plural sense?
Ans. In the plural sense, statistics refers to:

• Numerical facts or data that are collected systematically.
• Information that can be analysed to reveal patterns or trends.
• Data is used to summarise and present findings in a clear manner.

Q.4. Define data.
Ans. Data refers to economic facts or information presented in numerical form. It can be:

• Quantitative data: Measurable information, such as production figures.
• Qualitative data: Descriptive attributes, like gender or skill levels, that cannot be measured numerically.

Both types of data are essential for analysing economic issues and formulating policies.

Q.5. Give an example each of quantitative and qualitative fact used in economics.
Ans. Quantitative Fact: The population of India increased from 100 crores in 2000 to 130 crores in 2013, showing measurable growth.
Qualitative Fact: Grouping individuals based on their marital status (e.g., single, married, divorced), which describes characteristics rather than numerical values.

Q.6. List the stages of the statistical study.
Ans. There are five stages of statistical study:
(i) Collection of Data: It is the process of gathering information in order to arrive at an effective solution to an economic problem.
(ii) Organisation of Data: It is the process of classifying the raw data to facilitate further statistical analysis.
(iii) Presentation of Data: It is the process of putting the voluminous data in compact and presentable form.
(iv) Analysis of Data: It is the process of examining, modifying and modelling data with the objective of drawing useful information, suggesting inferences and supporting decision-making.
(v) Interpretation of Data: It is the process of making sense of numerical data that has been collected, presented and analysed.

Q.7. Write two techniques of collection of data.
Ans. Two techniques for the collection of data are:
(i) Sampling: Collecting data from a selected group or sample representing the entire population.
(ii) Census: Collecting data from every individual or unit in the entire population.

Q.8. Name the statistical tools used to present the data.
Ans. The statistical tools used to present data include diagrams, graphs, and tables which help in organizing and simplifying complex information.

Q.9. Write any two functions of statistical methods.
Ans. Statistical methods:
(i) Help analyze economic problems by providing quantitative insights.
(ii) Assist in formulating policies to effectively address economic issues.

Q.10. Define statistics.
Ans. According to Seligman, “Statistics is the science that deals with the methods of collecting, classifying, presenting, comparing, and interpreting numerical data to shed light on various areas of inquiry.”

Q.11. Explain in brief the stages of statistical study.
Ans. There are five stages of statistical study:
(i) Collection of Data: It is the process of gathering information in order to arrive at an effective solution to an economic problem.
(ii) Organisation of Data: It is the process of classifying the raw data to facilitate further statistical analysis.
(iii) Presentation of Data: It is the process of putting the voluminous data in compact and presentable form.
(iv) Analysis of Data: It is the process of examining, modifying and modelling data with the objective of drawing useful information, suggesting inferences and supporting decision-making.
(v) Interpretation of Data: It is the process of making sense of numerical data that has been collected, presented and analysed.

Q.12. Write down the limitations of statistics.
Ans. The limitations of statistics include:

• Focus on numerical facts: Statistics primarily deals with numbers.
• Study of aggregates: It looks at groups rather than individuals.
• Homogeneous data requirement: Similar data are needed for accurate analysis.
• Averages: Results often rely on average values, which can be misleading.
• Risk of errors: Without proper references, statistics can lead to mistakes.
• Expert use: Understanding statistics typically requires expertise.
• Potential for misuse: Statistics can be manipulated to support false claims.

Q.13. State the characteristics of statistics.
Ans. The characteristics of statistics are:

• Aggregate of facts: Statistics represent a collection of data points.
• Numerically expressed: Data must be presented in numerical form.
• Estimated with reasonable accuracy: Statistics provide approximations that are close to actual values.
• Affected by multiple causes: Various factors can influence statistical outcomes.
• Related to each other: Statistics often show connections between different data sets.

Q.14. How does statistics help in economic forecasting?
Ans. 

• Statistics provides a scientific approach to predicting economic trends.
• It helps forecast important factors like price levels, income, employment, and interest rates.
• Various statistical tools and techniques are used to analyse data from past years.
• This analysis aids in formulating effective economic policies to address issues.

Q.15. How are economic policies formulated with the help of statistics?
Ans. 

• Statistical data is crucial for shaping economic policies.
• For example, estimated poverty ratios help the government decide how to allocate resources for employment programmes.
• Similarly, data on exports and imports guide adjustments in trade policies.

Q.16. What role does statistics play in finding the relationship between economic factors?
Ans. 

• Statistics identifies relationships between economic factors.
• It helps understand how changes in one factor, like price, affect others, such as demand.
• For example, it can show how interest rates influence savings or how government spending impacts price levels.
• Statistical methods verify these relationships, allowing economists to test assumptions and make predictions.
• Ultimately, statistics is essential for formulating effective economic policies.