Worksheet Solutions: Introduction- 1 | Economics Class 11 - Commerce PDF Download

Multiple Choice Questions

Q1: What is the primary purpose of statistics in economics?
(a) To prove economic theories
(b) To manipulate data
(c) To collect, analyze, and interpret data
(d) To estimate future economic trends
Ans: (c) To collect, analyze, and interpret data

Q2: Which of the following is not a characteristic of statistics?
(a) It deals with numerical data.
(b) It is always accurate.
(c) It involves uncertainty.
(d) It is used solely for historical data analysis.
Ans: (b) It is always accurate.

Q3: What is the term for data collected directly from its source for a specific purpose?
(a) Primary data
(b) Secondary data
(c) Descriptive data
(d) Qualitative data
Ans: (a) Primary dat

Q4: A histogram is a graphical representation of what type of data?
(a) Qualitative data
(b) Descriptive data
(c) Quantitative data
(d) Historical data
Ans: (c) Quantitative data

Q5: What does the term "descriptive statistics" refer to?
a) Predicting future economic events.
b) Summarizing and presenting data.
c) Controlling economic policies.
d) Calculating economic growth rates.
Ans: (b) Summarizing and presenting data.

True or False

Q1: Inferential statistics involves drawing conclusions about a population based on a sample.
Ans: True

Q2: A frequency distribution table organizes data systematically to facilitate analysis and interpretation.
Ans: True

Q3: The mean, median, and mode are all measures of central tendency.
Ans: True

Q4: Correlation implies causation.
Ans: False

Q5: Statistics is always 100% accurate in predicting economic events.
Ans: False

Very Short Answers 

Q1: Define "data" in the context of economics.
Ans: Data in economics refers to a collection of facts, figures, or information related to economic phenomena.

Q2: Explain the significance of statistics in economics.
Ans: Statistics plays a significant role in economics by providing tools to collect, organize, analyze, and interpret data, which is crucial for informed economic decision-making and policy formulation.

Q3: Differentiate between primary data and secondary data.
Ans: Primary data is collected directly from original sources for a specific purpose, while secondary data is obtained from existing sources, often for a different purpose.

Q4: What is the purpose of constructing a frequency distribution table?
Ans: The purpose of constructing a frequency distribution table is to systematically organize and present data to make it easier for analysis and interpretation.

Q5: Define "population" in statistics.
Ans: In statistics, a "population" refers to the entire group of individuals, items, or elements about which information is desired.

Short Answers

Q1: Discuss the importance of statistics in economic decision-making.
Ans: Statistics is vital in economic decision-making as it helps collect and analyze data related to economic events. This data is used to formulate policies, estimate trends, and assess the impact of economic decisions. For example, it aids in calculating measures like GDP, inflation rates, and employment statistics, which are essential for economic policy-making and decision-making.

Q2: Explain the differences between a sample and a population in statistical terms.
Ans: In statistical terms, a population refers to the entire group under study, while a sample is a subset of the population selected to represent it. For instance, if we want to study the average income of all households in a country (population), we might select a sample of households to estimate this value.

Long Answers 

Q1: Describe the steps involved in the statistical analysis of data, from data collection to interpretation.
Ans: The statistical analysis of data involves several key steps:
a. Data Collection: This step involves gathering relevant information through surveys, experiments, or observations.
b. Data Organization: Data is sorted and arranged into a systematic form, such as frequency distribution tables or graphs.
c. Data Presentation: Data is represented visually through graphs, charts, or tables.
d. Data Analysis: Statistical techniques are applied to derive meaningful insights and draw conclusions.
e. Interpretation: The findings are explained, and informed decisions are made based on the analysis.

Q2: Discuss the limitations of statistics in making economic decisions and policies.
Ans: Statistics has limitations in making economic decisions and policies. It simplifies complex economic phenomena, assumes data accuracy, and may not account for all relevant factors. Additionally, correlation does not imply causation, and statistics cannot always predict future economic events accurately. Moreover, the misuse of statistics can lead to biased or misleading conclusions. Therefore, while statistics is a valuable tool, it should be used cautiously in economic decision-making and policy formulation.