CBSE Class 11 Economics Introduction to Statistics

CBSE Class 11 Economics - Introduction to Statistics. There are many more useful educational material which the students can download in pdf format and use them for studies. Study material like concept maps, important and sure shot question banks, quick to learn flash cards, flow charts, mind maps, teacher notes, important formulas, past examinations question bank, important concepts taught by teachers. Students can download these useful educational material free and use them to get better marks in examinations.  Also refer to other worksheets for the same chapter and other subjects too. Use them for better understanding of the subjects. INTRODUCTION – STATISTICS FOR ECONOMICS

CHAPTER - 1: INTRODUCTION - STATISTICS FOR ECONOMICS

Very Short Answer Questions - 1 Mark Each

1. What is meant by 'ordinary business of life'? [1 Mark]

Answer:
The ordinary business of life refers to the economic activities undertaken by human beings to earn their living and material means for satisfying their unlimited wants.

Teacher's Note:
a) Coined by Alfred Marshall, it describes everyday earning and spending activities.
b) It focuses on the material welfare aspect of economics.

2. Define the following terms: [1 Mark]
a) Consumer
b) Seller
c) Producer
d) Service holder
e) Service provider

Answer:
a) Consumer: An economic agent who consumes goods and services for the satisfaction of wants.
b) Seller: A person or entity who sells goods and services in the market to earn profit.
c) Producer: A person or enterprise that produces goods and services for generation of income.
d) Service holder: An employee who works for another person or organization in exchange for a wage or salary.
e) Service provider: A person or enterprise that offers services to others for a fee or charge.

Teacher's Note:
a) These are the primary stakeholders or economic agents studied in economics.
b) Each plays a distinct role in production, distribution, and consumption.

3. Distinguish between economic activities and non-economic activities [1 Mark]

Answer:
1. Economic activities are undertaken to earn a living and create wealth (e.g., production, consumption).
2. Non-economic activities are driven by emotional, social, or altruistic motives with no monetary reward (e.g., charity, cooking food for family).

Teacher's Note:
a) The key distinction lies in the motive of earning money versus personal satisfaction.
b) Economics exclusively studies economic activities.

4. Define the term 'data'. [1 Mark]

Answer:
Data refers to a collection of numerical facts or information expressed in numbers, collected for some specific purpose or study in economics.

Teacher's Note:
a) Data serves as the raw material for statistical analysis.
b) It must be quantitative to be effectively processed by statistical methods.

5. Distinguish between 'qualitative data' and 'quantitative data'. [1 Mark]

Answer:
1. Qualitative data describes attributes, qualities, or characteristics that cannot be measured numerically (e.g., beauty, intelligence).
2. Quantitative data consists of numerical measurements or counts that can be expressed in numbers (e.g., income, height, price).

Teacher's Note:
a) Statistics primarily deals with quantitative data.
b) Qualitative data can sometimes be analyzed if converted into ranks or scores.

6. What is meant by 'policies' in economics? [1 Mark]

Answer:
Policies in economics refer to courses of action or programs formulated and implemented by the government or economic authorities to solve economic problems and achieve desired economic objectives.

Teacher's Note:
a) Examples include monetary policy, fiscal policy, and trade policy.
b) They are formulated using reliable statistical data.

Short Answer Questions - 3 Marks Each

1. Explain the three economic activities studied in economics [3 Marks]

Answer:
1. Consumption: The process by which consumers use up goods and services for the satisfaction of their wants.
2. Production: The process of converting raw materials into useful goods and services to create utility or value.
3. Distribution: The mechanism by which the total national income is shared among the factors of production in the form of rent, wages, interest, and profit.

Teacher's Note:
a) These three are the foundational pillars of economic study.
b) All economic activities revolve around scarcity and choice.

2. Why is statistics used in economics? [3 Marks]

Answer:
1. Simplification of complex data: Statistics presents complex economic facts in a definite and easily understandable form through tables and graphs.
2. Policy formulation: Governments use statistical data and tools to formulate appropriate economic policies for development.
3. Inter-sectoral and inter-temporal comparison: It helps in comparing economic variables across different sectors or time periods to study trends.

Teacher's Note:
a) Economics is a quantitative science requiring empirical verification.
b) Statistics provides the necessary tools for economic forecasting.

OR

What statistics does in economics? [3 Marks]

Answer:
1. It helps in understanding economic problems like poverty and unemployment through quantitative measurement.
2. It enables economists to establish functional relationships between different economic variables like price and demand.
3. It helps in macroeconomic forecasting and planning for future economic growth.

Teacher's Note:
a) This focuses on the functional role of statistics in economic analysis.
b) Statistics acts as an instrument for quantitative investigation.

NCERT text book questions - 3 Marks each

1. Mark the following statements as true or false. Give reasons [3 Marks]
(i) Statistics can only deal with quantitative data.
(ii) Statistics solves economic problems.
(iii) Statistics is of no use to Economics without data.

Answer:
(i) False. Reason: Statistics can sometimes deal with qualitative attributes if they can be quantified or expressed numerically, though it primarily deals with quantitative data.
(ii) False. Reason: Statistics only provides tools and methods to analyze economic problems; it does not automatically solve them.
(iii) True. Reason: Statistical methods require numerical data as raw material to perform analysis and derive meaningful conclusions.

Teacher's Note:
a) Conceptual clarity on the scope and limitations of statistics is tested here.
b) Students must justify each statement with a valid reason to secure full marks.

2. 'The Government and policy makers use statistical data to formulate suitable policies of economic development'. Illustrate with two examples. [3 Marks]

Answer:
1. Poverty Alleviation: Governments use statistical data on the percentage of population below the poverty line to design targeted employment and welfare schemes.
2. Budgetary Allocation: Taxation and expenditure policies in the annual budget are formulated based on statistical data regarding inflation, GDP growth, and sectoral output.

Teacher's Note:
a) Emphasizes the practical application of statistics in governance.
b) Real-world economic planning is impossible without reliable statistical systems.

3. Statistical methods are no substitute for common sense. Comment. [3 Marks]

Answer:
1. Statistical data and methods can sometimes lead to misleading conclusions if interpreted without logical reasoning.
2. Figures do not speak for themselves; they require intelligent interpretation backed by common sense and domain knowledge.
3. Blind reliance on statistics without considering contextual realities can result in faulty economic policies and decisions.

Teacher's Note:
a) Highlights a major limitation and caution in using statistics.
b) Famous quote: "Statistics are like clay of which you can make a god or a devil as you please."