Passage Based Questions: Introduction | Economics Class 11 - Commerce PDF Download

Passage - 1

Direction: Read the following Passage and Answer the Questions.

Statistics deals with the collection, analysis, interpretation and presentation of numerical data. It is a branch of mathematics and also used in the disciplines such as accounting, economics, management, physics, finance, psychology and sociology. Here we are concerned with data from the field of Economics. Most Economics data are quantitative.

Q1: What is the primary focus of statistics, and how is it defined in the passage?
Ans:

• Statistics is primarily concerned with the collection, analysis, interpretation, and presentation of numerical data.
• It is a branch of mathematics and is applied in various disciplines, including accounting, economics, management, physics, finance, psychology, and sociology.

Q2: In which field of study is the data discussed in this passage derived from, and what characterizes the data in this field?
Ans:

• The data in this passage is derived from the field of Economics.
• Most economics data are quantitative in nature, emphasizing numerical values and measurements.

Q3: How does statistics play a role in the field of Economics, and what functions does it perform?
Ans:

• In Economics, statistics helps collect, analyze, interpret, and present quantitative data to support research, decision-making, and policy formulation.
• It enables economists to draw meaningful insights and make informed assessments based on numerical information, facilitating a deeper understanding of economic phenomena.

Passage - 2

Direction: Read the following Passage and Answer the Questions.

Statistics is an indispensable tool for an economist that helps him to understand an economic problem. Using its various methods, effort is made to find the causes behind it with the help of qualitative and quantitative facts of an economic problem. Once the causes of the problem are identified, it is easier to formulate certain policies to tackle it.

Q1: What role does statistics play in economics, and how does it aid economists in understanding economic issues?
Ans:

• Statistics is an essential tool for economists to comprehend economic problems.
• Economists use various statistical methods to explore the causes of these problems, relying on both qualitative and quantitative data.
• By identifying the underlying causes, economists can develop informed policies and strategies to address the economic issues effectively.

Q2: How do economists use statistics to analyze economic problems, and what types of data do they consider?
Ans:

• Economists employ statistical methods to analyze economic issues by examining both qualitative and quantitative data.
• They gather and analyze data to identify the root causes of economic problems, whether they are related to consumer behavior, market trends, or policy impacts.

Q3: Why is the identification of the causes behind an economic problem significant, and how does it enable the formulation of effective policies?
Ans:

• Identifying the causes of an economic problem is crucial because it paves the way for the development of targeted policies.
• Once the causes are known, economists can design policies that address the specific factors contributing to the problem, leading to more effective solutions and economic improvements.

Passage - 3

Direction: Read the following Passage and Answer the Questions.

Statistics also helps in condensing mass data into a few numerical measures (such as mean, variance etc., about which you will learn later). These numerical measures help to summarise data. For example, it would be impossible for you to remember the incomes of all the people in a data if the number of people is very large. Yet, one can remember easily a summary figure like the average income that is obtained statistically. In this way, Statistics summarises and presents a meaningful overall information about a mass of data.

Q1: What role do numerical measures like the mean and variance play in statistics, as mentioned in the passage?
Ans:

• Numerical measures, such as the mean and variance, are used in statistics to condense large datasets into a few summary figures.
• These measures help in summarizing and presenting the data, making it more manageable and understandable.

Q2: How does statistics address the challenge of handling large volumes of data effectively?
Ans:

• Statistics enables the condensation of mass data into summary figures, making it possible to manage and interpret large datasets.
• For example, while it may be impractical to remember the incomes of numerous people in a large dataset, statistics can provide meaningful summary figures like the average income.

Q3: What is the significance of using statistics to obtain summary information from a mass of data?
Ans:

• Statistics plays a crucial role in presenting meaningful overall information about extensive datasets.
• It allows for the extraction of key insights and patterns from data, making it easier for individuals to grasp and work with data, even when dealing with substantial amounts of information.

Passage - 4

Direction: Read the following Passage and Answer the Questions.

In economic policies, Statistics plays a vital role in decision making. For example, in the present time of rising global oil prices, it might be necessary to decide how much oil India should import in 2025. The decision to import would depend on the expected domestic production of oil and the likely demand for oil in 2025. Without the use of Statistics, it cannot be determined what the expected domestic production of oil and the likely demand for it would be. Thus, the decision to import oil cannot be made unless we know the actual requirement of oil. This vital information that helps to make the decision to import oil can only be obtained statistically. 

Q1: How does Statistics play a significant role in the decision-making process for economic policies, as discussed in the passage?
Ans:

• Statistics is essential for making informed decisions about economic policies.
• It helps in gathering and analyzing data to determine key factors like expected domestic oil production and future demand, which are critical for policy decisions.

Q2: What specific example is provided in the passage to illustrate the importance of Statistics in economic decision-making?
Ans:

• The passage gives an example of deciding how much oil India should import in 2025 amid rising global oil prices.
• This decision relies on statistical data to estimate domestic oil production and assess the likely demand for oil in the future.

Q3: Why is statistical information crucial for making decisions regarding the import of oil or other economic policies?
Ans:

• Statistical data provides the necessary information to assess the actual requirement for oil and other important factors, enabling policymakers to make informed decisions regarding imports and other economic policies.
• Without statistical insights, it would be challenging to estimate key economic parameters and plan effectively.