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

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 and methods of collecting, organising, analysing and interpreting numerical data so as to draw valid conclusions and aid decision-making.
(ii) Plural Sense: It refers to numerical facts or figures (for example, unemployment rate, GDP, price indexes) which are collected and presented systematically.

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 and are used to turn raw numbers into meaningful information for economic study and policy.

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, such as rates, averages and percentages.
• Data that are used to summarise and present findings in a clear manner for comparison over time or across regions.

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

• Quantitative data: Measurable information, such as production figures, income, or population numbers.
• Qualitative data: Descriptive attributes, like gender, occupation or skill levels, which describe characteristics rather than exact numerical values.

Both types of data are essential for analysing economic issues and for designing suitable 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) - this describes a characteristic rather than a numerical value.

Q.6. List the stages of the statistical study.
Ans. There are five stages of statistical study:
(i) Collection of Data: Gathering relevant information needed to study an economic problem; accuracy at this stage is crucial.
(ii) Organisation of Data: Classifying and arranging raw data into suitable groups or categories to make handling easier.
(iii) Presentation of Data: Putting voluminous data into compact and understandable forms such as tables, charts and graphs.
(iv) Analysis of Data: Examining and processing the organised data to find patterns, relationships and meaningful summaries.
(v) Interpretation of Data: Explaining the results of analysis to draw conclusions and make decisions or policy recommendations.

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 that represents the entire population; it is less costly and quicker but may involve sampling error.
(ii) Census: Collecting data from every individual or unit in the entire population; it gives complete coverage but is time-consuming and expensive.

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 organising and simplifying complex information. Examples are bar charts, pie charts, histograms and frequency tables.

Q.9. Write any two functions of statistical methods.
Ans. Statistical methods:
(i) Help analyse economic problems by providing quantitative measures (for example, by measuring inflation, unemployment or growth rates) and revealing trends.
(ii) Assist in formulating policies by supplying reliable evidence; for instance, statistics on poverty help design targeted welfare programmes.

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."
This definition emphasises that statistics is a systematic set of methods used to handle numerical data so that meaningful comparisons and conclusions can be drawn.

Q.11. Explain in brief the stages of statistical study.
Ans. There are five stages of statistical study:
(i) Collection of Data: Gathering accurate and relevant information from primary or secondary sources to address an economic question.
(ii) Organisation of Data: Sorting and classifying the collected data into groups or categories so that it can be handled easily.
(iii) Presentation of Data: Displaying organised data in concise forms-tables, charts or graphs-to make patterns visible.
(iv) Analysis of Data: Applying statistical techniques to examine data, detect trends, and measure relationships among variables.
(v) Interpretation of Data: Drawing sensible conclusions from analysed results and explaining their implications for policy or decision-making.

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

• Focus on numerical facts: Statistics deals mainly with numbers and may not capture non-quantifiable human aspects.
• Study of aggregates: It concerns groups rather than individual cases, so individual variations can be overlooked.
• Homogeneous data requirement: Accurate comparison requires that data be comparable in definition and measurement; lack of uniformity reduces reliability.
• Averages: Use of averages can be misleading because they may hide disparities within the data.
• Risk of errors: Improper collection, processing or presentation of data can produce wrong results.
• Expert use: Correct interpretation often needs specialised knowledge; lay reading may lead to misinterpretation.
• Potential for misuse: Statistics can be selectively used or manipulated to support false or biased conclusions.

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

• Aggregate of facts: Statistics represent a collection of related data points gathered together.
• Numerically expressed: Data are usually presented in numbers to allow measurement and comparison.
• Estimated with reasonable accuracy: Statistics provide approximate values that aim to be close to actual figures.
• Affected by multiple causes: Statistical results are often influenced by various interacting factors.
• Related to each other: Different statistical series often show relationships, enabling comparisons and analysis.

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

• Statistics provides a scientific approach to predicting economic trends by analysing past and current numerical data.
• It helps forecast important factors like price levels, income, employment, and interest rates using observed patterns.
• Various statistical tools and techniques, such as trend analysis and index numbers, are used to examine past years' data.
• This analysis aids policymakers and businesses to plan ahead-for example, estimating future demand or inflation so that appropriate measures can be taken.

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

• Statistical data are crucial for shaping economic policies by revealing the scale and nature of problems.
• For example, estimated poverty ratios help the government decide how to target and allocate resources for employment and welfare programmes.
• Similarly, reliable data on exports and imports guide adjustments in trade and fiscal policies to correct imbalances.

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

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