GSEB Class 12 Economics Solutions Chapter 1 Graphs in Economics

1. Choose the Correct Option for the Following Questions:

Question 1. For which type of distribution a diagram is drawn?
(a) Continuous
(b) Discrete/Discontinuous
(c) Skewed
(d) Ideal
Answer: (b) Discrete/Discontinuous
In simple words: Diagrams are often used to show data where information is distinct and separate, rather than flowing smoothly.

Exam Tip: Remember that diagrams visually represent data, and discrete data points are easily depicted in such formats.

Question 2. For which type of distribution a graph is drawn?
(a) Continuous
(b) Discrete/Discontinuous
(c) Skewed
(d) Ideal
Answer: (a) Continuous
In simple words: Graphs are best suited for showing data that changes smoothly over time or a range, like temperature or growth.

Exam Tip: Graphs are ideal for continuous data, where values can fall anywhere within a range, not just specific, separate points.

Question 3. Which of the following diagrams are drawn for similar data?
(a) Simple bar diagram and clustered bar diagram
(b) Bar diagram and pie diagram
(c) Clustered bar diagram and time-series graph
(d) Pie diagram and time-series graph
Answer: (b) Bar diagram and pie diagram
In simple words: Bar diagrams and pie diagrams both display categorical or proportional data in a clear visual way.

Exam Tip: Understand the basic purpose of each diagram type to easily identify which ones handle similar kinds of data.

Question 4. Which of the following statements is true for the internet in the present times?
(a) It is a tool for studying.
(b) Fulfils the role of a teacher in the process of studying.
(c) Is a close substitute for schools.
(d) Is only a tool for entertainment for youth.
Answer: (c) Is a close substitute for schools.
In simple words: In today's world, the internet acts as a very good alternative for learning, similar to what schools provide.

Exam Tip: Evaluate each option against the current capabilities and widespread use of the internet in education to pick the most accurate statement.

Question 5. Who/Which type of organization presents data CDs pertaining to economic information?
(a) Private publishers
(b) Schools
(c) Laboratories, research centres, government etc.
(d) Individuals
Answer: (c) Laboratories, research centres, government etc.
In simple words: Organizations like labs, research centers, and government bodies usually create and share CDs filled with economic data.

Exam Tip: Identify the most credible and authoritative sources for official economic data to answer this type of question correctly.

2. Answer the Following Questions in One Line:

Question 1. What is meant by a diagram?
Answer: A diagram is a visual depiction of the connection between different variables.
In simple words: A diagram shows how things are linked together using a picture.

Exam Tip: Define diagrams as visual tools used to represent relationships between data points clearly.

Question 2. What is meant by a graph?
Answer: A graph is a visual display drawn for complicated details, made simpler using statistical tools, or for facts shown in a continuous frequency that becomes clear with these tools.
In simple words: A graph is a picture that makes complex or ongoing numerical information easy to see and understand, usually with statistical help.

Exam Tip: Highlight that graphs are used for complex or continuous data, often with statistical methods, to make them easy to present.

Question 3. What is meant by a bar diagram?
Answer: When a data collection is split into various parts and a bar is drawn for each part on a shared base, where the bar's height shows the value of the variable for that specific part, it is called a bar diagram.
In simple words: A bar diagram uses bars of different heights to show the value of a variable for different parts of a data set.

Exam Tip: When defining a bar diagram, emphasize the use of bars, a common base, and the proportionality of bar height to data value.

Question 4. What is meant by a pie diagram?
Answer: A pie diagram is a circular chart that shows sub-divisions of a whole data set by proportional degrees within a circle.
In simple words: A pie diagram is a circle divided into slices, where each slice shows a part of the whole data in proportion to its size.

Exam Tip: Explain that a pie diagram represents parts of a whole using segments of a circle, with the size of each segment corresponding to its proportion.

Question 5. What is a data CD?
Answer: A data CD is a compact disc that includes a collection and release of details and data concerning major economic indicators. This content on the CD is sold to researchers and schools.
In simple words: A data CD is a disc containing collected economic information and data, sold to researchers and schools.

Exam Tip: Describe a data CD as a medium for distributing comprehensive economic information to academic and research institutions.

3. Answer the Following Questions in Brief:

Question 1. What is meant by a diagram and for what purpose it is drawn?
Answer:

• A diagram is a visual way to show observed data.
• It is easy to understand and can be created without much effort.
• While a scale and measurements are needed, extensive knowledge of statistics is not required to draw a diagram.
• Diagrams are made for data that has a discrete (separate) frequency distribution. For example, data points such as the number of children born in a month, price in rupees, or the number of road accidents.

Exam Tip: When explaining diagrams, focus on their simplicity, visual nature, and suitability for discrete data to convey their purpose.

Question 2. What is meant by a graph and for what purpose it is drawn?
Answer:

• A graph is a visual depiction of observed data.
• Graphs are drawn for statistical details that are not self-explanatory. In other words, a graph cannot be created or understood by individuals who lack a thorough understanding of statistics.
• A graph is drawn for data that has a continuous frequency distribution. For instance, classifying people into various groups based on their incomes, or dividing students based on their marks.

Exam Tip: When defining graphs, emphasize their use for continuous and statistical data, requiring a certain level of statistical understanding.

Question 3. State the importance of diagrams and graphs in economics.
Answer: The importance of diagrams and graphs in economics is:

1. Economics can seem difficult and confusing for students. Diagrams simplify economics, and graphs clarify data representation, making it easier to grasp.
2. Trends in certain economic factors over various years can be seen using a single diagram or graph.
3. Graphs and diagrams assist in easily understanding changes happening in different parts of the economy.
4. One can easily compare how economic factors are spread across groups, regions, sectors, and different time periods.
5. When many seemingly complex economic aspects are presented through a diagram or graph, it saves time and effort for both the presenter explaining and the reader understanding these points.
6. Some complex economic principles become easy to understand with diagrams and graphs. For example, concepts like expansion and contraction of demand and supply, and price elasticity, are made simpler with pictures. Similarly, time-series graphs can clarify trends in macroeconomic indicators.

Exam Tip: When listing the importance, focus on how these tools simplify complex economic concepts, aid in trend analysis, and facilitate comparisons.

Question 4. How is computer technology used in the process of learning?
Answer: The use of technology in studying economics:

The various types of digital tools often used in studying economics are:

Computer technology:

• Computers and economics frequently go together.
• Computers help achieve several goals in economics, some of which are explained below.

1. In making presentations:

• Complex economic information and difficult economic theories can be easily shown using PowerPoint presentations.
• For example, if someone needs to briefly explain the budget, they can make 3 to 4 slides in Microsoft PowerPoint, highlighting key topics, showing important figures and charts, and then explaining the whole budget.

2. Excel worksheets:

• Economics involves a lot of data. Researchers encounter data with thousands of observations daily. It is nearly impossible to manage this much data by hand.
• Microsoft Excel is a strong tool for managing large data related to various economic factors and then performing analysis on it.
• For example, if we survey the number of products made by small scale industries in India, we would get thousands of observations.
• We can put this data into Excel and quickly get various numbers such as total production, average production, number of units in a given region, total exports, etc.
• Excel also provides many types of graphs and diagrams that can be created with a click.

3. Diagrams and graphs:

• Several computer programs help us create diagrams and graphs frequently used in economics.
• Microsoft Word also offers drawing features that can be used to make simple freehand figures, such as downward or upward-sloping demand or supply curves.
• It can also be used to write a report, insert diagrams and graphs from Excel, and publish the report.

4. Storage tools:

Economic studies utilize a large amount of research and reference material. Therefore, it is very important to have enough space where this material can be kept for a long time.

• Having so many reference and data in books is very hard to carry, study, and manage. Furthermore, the material might get lost, damaged by pests, moisture, or other causes.
• All such materials can be conveniently stored, retrieved, and moved easily if we use electronic media.

The data and materials can be stored in computers, portable hard drives, pen drives, compact discs, etc.

Nowadays, data can also be easily kept in digital format using email, Dropbox, Google Drive, Digi-locker, etc. We can access this material and read it anywhere in the world.

• These media make it quite simple to transfer data, save it securely, and keep it safe for a long time in many places.
• Thus, study materials can be protected with the help of computer technology.

5. Other tools:

• and can manage any size of data.
• SPSS, SHAZAM, E-views, SAS, etc., are some of these statistical software. These programs can process data from lakhs of observations within seconds or minutes. Since these statistical software are very expensive, research institutes or government organizations mostly purchase them.
• There are also statistical programs like Gretl, PSPP, R, etc., which are available for free online but perform almost the same analysis tasks as the costly software.
• Today, many of these computer functions are also available on smartphones and tablets.

Exam Tip: Provide a comprehensive overview of how computers, software, and storage devices streamline the study and presentation of economic data.

Question 5. Write a note on data CD.
Answer:

1. Several authorities and agencies collect and release information and data related to major economic indicators.
2. Since this work requires significant effort and money, these agencies compile such data onto compact discs and sell them in the market.
3. Researchers and educational institutions purchase these data CDs for their own research and analysis.

Examples of Data CDs available are:

• CD of National Income Accounts of India
• CD of Census of India
• CD of Annual Survey of Industries in India
• CD of NSSO (National Sample Survey Organization)
• Some agencies like CMIE (Centre for Monitoring Indian Economy) also generate data and sell data CDs. They also create software that contains important statistical and economic data. However, these data and CDs are bought only by research institutes and corporations because they are very expensive.
• We can obtain several CDs containing statistical and economic data from various sources. For example, we can get data related to the number of schools and students studying in Gujarat from the education ministry.

Exam Tip: When discussing data CDs, explain their content, purpose, and the types of organizations that both produce and utilize them.

4. Give Answers to the Point for the Following Questions:

Question 1. State the important aspects to be considered while drawing a diagram and a graph.
Answer: Aspects to consider when drawing a diagram or graph:

1. Choice of type of diagram or graph and their presentation: One should identify and pick the most suitable type of diagram or graph. This will make the visual representation more effective. For instance, for some data types, a bar diagram is more appropriate than a pie diagram.
2. Clarity: The diagram or graph must appear neat and clear. Different colors or shades can be used to indicate various parts of the visual.
3. Scales and Measures: Scales must be chosen according to the data to ensure the diagram or graph has an appropriate size.
4. Representation of axis: Both the X-axis and Y-axis of a diagram or graph must be labeled with suitable details about what they represent.
5. Data table and source of data: Along with diagrams and graphs, one should also provide the data table from which they were created. Moreover, the source of the data should also be given. This increases the reliability and authenticity of the diagram or graph.
6. Method of calculating the data: Sometimes the data is complex or not in the format we need for our diagram. For example, we might need percentages for our diagram, but the data sheet does not include a percentage column. When we create a diagram or graph by using percentages, we should briefly mention the statistical formula or method used.

Exam Tip: For diagrams and graphs, remember to cover accuracy, clarity, proper labeling, and source citation as key aspects for a complete answer.

Question 2. State the important aspects to be considered while drawing a bar diagram.
Answer: Aspects to consider when drawing a bar diagram:

1. The width of the bars does not show any data. Therefore, all bars should be drawn with equal width.
2. The length of each bar should be proportionate to the value of the variable it represents.
3. The space between all bars should be equal. This same space should also be kept between the first bar and the origin.
4. All bars rest on the same line called the 'base', which usually lines up with the 'X-axis'. Nowadays, with computer technology, horizontal bars are also drawn instead of vertical ones.
5. All vertical bars should be arranged from left to right according to the data series. So, the bar representing the first data in the series is drawn closest to the origin point.

Exam Tip: Focus on the consistency of bar width, proportionality of length, and equal spacing when explaining the aspects of drawing a bar diagram.

Question 3. Give the difference between diagrams and graphs.
Answer:

Exam Tip: When differentiating, clearly state the audience, data type, and required statistical knowledge for both diagrams and graphs.

Question 4. Explain the usefulness of internet technology in the process of learning.
Answer: The internet is a platform that uses digital technology. The ways the internet helps in economics can be outlined in the following table.

Exam Tip: Organize your explanation by listing distinct ways the internet aids learning, such as tutorials, active learning, reading materials, and information search, to show its broad utility.

Question 5. Give the caution areas in using computer and internet technologies for studying.
Answer:

• One should never forget that while a computer helps with studying, it is not a study tool itself. A computer makes the learning process simpler and faster, but it does not take the place of actual studying.
• One should be able to wisely use these tools during their study. One needs to have a good understanding of computers as well as the statistical tools used with them.
• Computers do not think on their own. We might select any data and get the desired diagram and graph with one click, but it is our duty to ensure we pick the correct data, give suitable commands, and get the intended analysis and visual representation.
• We might also end up with wrong graphs and data processing if we do not know the correct formulas and commands.
• If we do not use the right commands on a computer, we might even lose our materials.

One should take the following care when using the internet for education:

• Just like computers, the internet is only a tool. It cannot replace books and teachers, or our own thinking and reasoning skills.
• A lot of fake material, irrelevant information, misleading details, and copied articles are available online. We must avoid using such information and materials.
• Readers must use their own good sense to figure out if the material provided is genuine and trustworthy.
• One must only use data or information from websites that are genuine and trustworthy.

Exam Tip: Emphasize the need for critical thinking, source verification, and proper usage of tools when discussing caution areas for technology in learning.

Question 6. What is the importance of diagrams and graphs in context of presenting information about economics for lay persons and for experts.
Answer:

• Economics provides an explanation and analysis of various economic events happening in the real world.
• For learning these events, a lot of data is gathered. This data is then analyzed and shown in simpler forms.
• Visual representation is a very good and easy way to show data analysis.
• Diagrams and graphs are two ways of visually presenting information.
• A common person might call a diagram and a graph the same thing, but Statistics sorts diagrams and graphs into different types of pictures. Both are used for distinct purposes. Similarly, in economics, these two are used for different goals.
• When we talk about the general public or common people, we need to show them representations they can understand. Diagrams fulfill this purpose.
• Understanding and analyzing data is often beyond the reach and interest of the general public. When such information is given in an easy format through diagrams, people tend to find it more interesting.

Although one needs to use scale and measurement to draw a diagram, one does not need thorough statistical knowledge to draw it. Since drawing the diagram is easy, it is clearly easy for a common person to understand.

• On the other hand, graphs are not meant for the general public. A graph is drawn for statistical information that is not self-explanatory.
• A common person can neither create nor represent graphs without deep knowledge of statistics. Hence, graphs are mostly used by researchers and in higher education.

Exam Tip: Distinguish between the audiences and purposes of diagrams (simplicity for general public) and graphs (detail for experts) in economic communication.

5. Answer the Following Questions in Detail:

Question 1. Explain the types of diagrams in detail.
Answer: The various types of diagrams are explained below:

(1) Time-based line (curve) diagram:

• This diagram is used when we have data related to time. For example, the price of a given share over the last 30 days, the number of vehicles passing a crossroad every hour, or population growth from 1951 to 2001.
• The line-diagram shows the relationship between two economic variables and their slope.
• Line diagrams can be used to show demand curves, supply curves, etc.
• The independent variable (usually time) is measured on the 'X-axis', and the dependent variable is measured on the 'Y-axis'.

(2) Bar diagram:

A bar diagram is a chart that uses bars to show comparisons between categories of data. The bars can be either horizontal or vertical.

Purpose:

• A bar diagram shows the distribution of a variable's value across various sections. For example, literacy rates in a country over different years, or literacy rates among females and males in a particular year.
• A vertical or horizontal bar is drawn for each value of the variable. A separate bar is drawn for each section, and the bar's height or length indicates the value for that section.
• Thus, by comparing the height or length of the bars, a comparison of the values of each section can be made.

Types:

Bar diagrams are generally of three types:

(A) Simple bar diagram:

• A simple bar diagram is one that represents values of only one variable over a base.
• Through a simple bar diagram, one can show sales data for various regions, months, or years.
• The difference in bar lengths visually highlights the difference in the variable's value being studied.

(B) Clustered bar diagram:

In this diagram type, values of a shared variable across multiple related parameters are shown over a common base. This creates a cluster of bars for the same variable over various values or sections at the base.

Use in economics:

• Suppose a mobile store owner has two branches. If they want to compare sales of each branch for a given time period, they can use a clustered bar diagram.
• Another example could be using 'year' as the base and comparing the literacy rates of two sections, namely males and females. This would result in a two-clustered bar diagram, where each pair of bars would show the literacy rate for males and females.
• To properly separate the bars, clustered bars are given different colors or designs. Each value point is then shown on the bar.

(C) Divided bar diagram:

• A divided bar diagram is one where each bar is split into several segments to show a set of quantities according to the different proportions of the total amount.
• In this diagram, every single value of the variable has sub-divisions. So, we get divisions in all the bars, which represent a shared variable and common base values.
• Each division of the bar is colored differently to tell them apart. Numbers are put on each division so they are easy to understand.

Exam Tip: When explaining diagram types, describe each one's specific purpose, how it's constructed, and the kind of data it best represents, using clear examples.

Question 2. Give an understanding of the usefulness of technology in the study of economics.
Answer: The use of technology in learning economics offers many benefits. The various kinds of digital aids often employed in the study of economics are:

Computer technology:

• Computers and economics now work together effectively.
• Computers are used to help with many tasks in economics. Some of these are explained next.

• Complex financial data and hard economic ideas can be simply shown by creating PowerPoint slides.
• For example, if someone needs to give a short budget overview, they can just create 3 to 4 slides in Microsoft Powerpoint, focus on key points, display important numbers and graphs, and present the whole budget.

• Economics involves much information. Investigators find data with many recorded instances on an everyday basis. It is very hard to manage so much data by hand.
• Microsoft Excel is a strong help for managing big data about various economic factors and doing analysis with it.
• For example, if we look at how many items are made by small businesses in India, we will gather many data points.
• We can enter this information into Excel and obtain different results like overall output, mean output, unit count in a certain area, total exports, etc., very quickly.
• Excel also has many kinds of charts and visuals which can be made with just one click.

• There are various software on a computer which aid in drawing charts and graphs often used in economics.
• Microsoft Word also gives drawing features which can be employed to create easy freehand shapes like a sloping down or up demand or supply lines.
• It can also be used to write a report, insert charts and graphs from Excel, and release the report.

Exam Tip: When explaining the usefulness of technology, make sure to categorize its applications (e.g., computer technology, presentations, spreadsheets) to provide a clear and organized answer.