Class
– XI
Assignment
– I
Statistics
for Economics
Chapter
– 1
Introduction
Q.1.
“Economics is the science which studies human behavior as a relation between
ends and scarce means which have alternative uses.” Who has defined economics
in these words?
a) Marshall
b) Robbins
c) Pigou
d) Adam Smith
Ans. Robbins
Q.2.
Economics studies __________________________.
a) Relation between human
wants & scarce means.
b) Use of resources.
c) Producer’s behavior.
d) Consumer’s behavior.
Ans. Relation between
human wants & scarce means.
Q.3. Identify the statement which is not true.
a) In
plural sense, statistics means data.
b) In
singular sense, statistics means statistical methods.
c) Statistics
enables to find out cause and effect relationship between different sets of
data.
d) Statistics
facilitates qualitative expression of economic problems.
Ans. Not True :
Statistics facilitates qualitative expression of economic problem.
Q.4. Which is not a characteristic of statistics in
plural sense?
a) Statistics
are aggregates of facts.
b) Statistics
are enumerated according to reasonable standards of accuracy.
c) Statistics
are not capable of being placed in relation to each other.
d) Statistics
are affected to marked extent by multiplicity of causes.
Ans. Statistics are not
capable of being placed in relation to each other.
Q.5. Which of the following is not a subject matter of
statistics?
a) Prices
of commodities.
b) Income.
c) Heights
and weights of individuals.
d) Beauty
of individuals.
Ans. Beauty of
Individuals.
Q.6. Define statistics in Plural sense. Explain its any
two characteristics.
Ans. Statistics in plural sense is defined
as the numerical statements of facts capable of analysis and interpretation.
Following are the characteristics of statistics in plural sense :
a) Statistics
are numerically expressed : For example, incomes,
prices of commodities, costs, height and weight of individuals can be expressed
in numerical values. It implied that variables such as beauty of individuals,
intelligence of individuals, honesty etc. cannot be termed as statistics since
they cannot be expressed numerically.
b)
Statistics are capable of being placed in
relation to each other : Statistics help in
correlating the data by establishing cause and effect relationships. For
example, price and demand, height and weight, wages and demand-supply of labour
etc.
Q.7. “The Govt. and the policy makers use statistical
data to formulate suitable policies of economic development.” Comment with
suitable example.
Ans. The government and policy makers use statistical
data to formulate suitable policies for economic development. The statistical data not only help them to
analyze and evaluate the outcomes of past policies, but also assist them to
take corrective measures and formulate a new or revised policy. Also, it helps
govt. to identify the needs & priorities for development of the country.
This view may be supported by the following illustrations
:
a) For
the scope of revenue, the government and policy makers use statistics to know
the capacity of the people of the different strata of society. Taxation policy
of the government is determined on the basis of statistics of income and expenditure
of the people.
b) The
import and export policy of the government is decided on the basis of
statistics of the production and consumption requirements. Without the use of
statistics, it cannot be determined what expected domestic production of a
commodity say oil and likely demand would be.
Q.8. You have unlimited wants and limited resources to
satisfy them. Explain giving two examples.
Ans. The resources are always scarce in relation to our
unlimited wants. Also, the resources have alternative uses. The people wants
are unlimited. As some wants get satisfied, some other crop up. Thus, scarcity
describes the condition of limited resources, and unlimited wants and needs.
For example, (i) a person has limited income in his
pocket but there are many dresses his daughter is willing to buy. (ii) Land is
scarce and has alternate uses, not sufficient to satisfy our unlimited wants. A
given piece of land can be used for construction of a factory for production or
to build a residential society.
This gives rise to the problem of Scarcity & Choice.
Q.9. “Statistics are no substitutes for common sense.”
Comment.
Ans. “Statistics are no close substitutes for common
sense.” This statement indicates that we should not use statistics devoid of
our common sense. We may find false relationships through statistical analysis.
For example, average waist size of staff in a readymade garments store may be
30”. But it would be foolish if the manager place an order of 45 trousers of
the size-thirty for all employees as that size may not fit many of them.
Hence, never rely on any statistical conclusion without
using common sense.
Q.10. Given the limited electricity generation capacity
giving rise to the gap between demand & supply of electricity. What
measures would you suggest for effective utilization of available limited
electricity?
Ans. Following are the ways by which demand for
electricity can be decreased given the limited supply :
a) People
in rural areas should be motivated to use alternate sources of energy such as
solar energy, wind energy etc.
b) People
should be motivated to use energy saving electrical appliances. Electrical
appliances with maximum stars consume less electricity.
c) People
should be motivated to use electric bulbs which consume less energy but give
proper light like LEDs. Marvelous steps have been taken by the govt. in this
respect.
d) People
should be motivated to avoid wastage of electricity. They should be made aware
of the slogan “Power saved is power generated.”
Q.11. What is meant by distrust of statistics?
Ans. By distrust of statistics, we mean lack of
confidence in statistical statements and statistical methods. This distrust
arises not because of anything wrong with statistics as a subject matter. It
arises because the users of statistics tend to manipulate it to suit or support
their pre-drawn conclusions or observations.
Main causes for the distrust of Statistics are as follows
:
a) Different
kinds of data are obtained to analyze a given problem.
b) Statistics
can be adjusted to match predetermined conclusions.
c) Authentic
statistics can be presented in such a manner as to confuse the reader.
d) When
statistics are collected partially, the results are generally wrong.
Q.12. Explain the role of statistics in economic
planning.
Ans. Statistics is used in economic planning for the
following purposes :
a) Statistical data help us
in comparing the rate of development of one country with the rate of
development of the other country.
b) The importance of
consumption, production, distribution etc. can be known from the available
statistical data.
c) The success that a plan
achieves is measured best by the use of statistical methods.
d) Statistical data are used
for knowing about the progress in the techniques of production, volume of production,
imports, exports, etc.
e)
Planning involves fixation of targets and priorities.
Targets which are fixed, have to be achieved within a specific period of time.
It will be possible only when data are available.
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