Kerala Plus One Economics Chapter Wise Previous Questions Chapter 11 Introduction
Question 1.
The knowledge of statistics is helpful in several ways. List out the beneficiaries of statistics with examples for each. (March 2009)
Answer:
The knowledge of statistics is helpful in several ways.
- It is helpful to economists.
- It is helpful to planners.
- It is helpful to businessmen.
- It is helpful to policymakers.
Question 2.
Statistics is an indispensable tool for economists. Substantiate. (March 2010)
Answer:
The purpose of collecting data about these economic problems is to understand and explain certain problems in terms of the various causes behind them. In other words, we try to analyze them. For example, when we analyze the hardships of poverty, we try to explain it in terms of the various factors such as unemployment, low productivity of people, backward technology, etc. But, what purpose does the analysis of poverty serve unless we are able to find ways to mitigate it. We may, therefore, also try to find those measures that help solve an economic problem. In Economics, such measures are known as policies.
Question 3.
“Statistical tools and methods can be used for various types of analysis”. Discuss. (March 2010)
The important functions of statistics are the following:
- It enables an economist to present economic facts in a precise and definite form that helps in proper comprehension of what is stated.
- Statistics also help in condensing the mass of data into a few numerical measures (such as mean, variance, etc., about which you will learn later). These numerical measures help summarize data.
- Statistics is used in finding relationships between different economic factors. Statistics finds economic relationships using data and verifies them.
- Statistical tools are used in the prediction of future trends. The economist might be interested in predicting the changes in one economic factor due to the changes in another factor.
- Statistical methods help formulate appropriate economic policies that solve economic problems.
Question 4.
Statistics is used in singular and plural senses. Elucidate. (March 2011)
Answer:
Statistics is used in singular and plural senses. In the plural sense statistics means numerical facts, systematically collected. Statistics, in the singular sense, means the science of collecting, classifying and using statistics or statistical facts.
Question 5.
True or False. (March 2012)
Statistics in a plural sense means data.
Answer:
True
Question 6.
Statistics plays a vital role in decision making. Discuss. (Say 2012)
Answer:
Statistics can be a good tool that will help to reduce the uncertainty associated with decision making, people can also use statistics to evaluate how good you are at decision making. Statistics can be used to inform decision making throughout the different stages of the. policy-making process. Statistics make sense of the mountains of data gathered by the business during its normal operation. These data, when properly interpreted, are vital tools in reviewing the performance and predicting the future of a business.
Question 7
Tell your friend of the Science stream, why you learn Statistics along with Economics. (March 2013)
Answer:
The applications of statistics are so numerous and ever interesting. It can be applied to any field of study whether it be trade, sociology, medicine, etc. Its. application in economics, business, research, etc are discussed below.
In economics variables like income, consumption, input, saving, etc. are systematically and scientifically analyzed and studied with the tools of statistics. Therefore, it is highly useful in economics. With the help of statistical methods abundant quantitative information can be obtained which can help immensely in formulating suitable policies.
Statistics are so important to the state that the government in most countries is the biggest collector and user of statistical data There is hardly any research work today that one can complete without statistical data and statistical methods. The statistical tools are highly needed for research in economics.
Question 8.
Statistics is used in finding relationships between different economic variables. (Say 2013)
Answer:
True
Question 9.
The government and policymakers use statistical data to formulate suitable policies for economic development. Illustrate with two examples. (March 2014)
Answer:
The government and the policymakers use statistical data to formulate suitable policies for economic development. No analysis of a problem would be possible without the availability of data on various factors underlying an economic problem. For example, if the government wants to make a policy to solve the problem of unemployment and poverty, reliable data are required for it.
The number of persons who are waiting for a job, unemployed, the number of illiterate people, those living below the poverty line, etc are required. If the government wants to help the people affected by the tsunami earthquakes, the bird flu dangers then the data should be collected and put together about disaster’s cost systematically and correctly.
Modern economists include learning the basic skills involved in making useful studies for measuring poverty, how incomes are distributed, how earning opportunities are related to education, how environmental disasters affect our lives, and so on.
Question 10.
Tell your friend the two distinct senses in which the word ‘Statistics’ is used. Elucidate. (March 2014)
Answer:
Singular sense
In the singular sense, statistics refers to the methods and principles of
- Collection of data
- Presentation of data
- Analysis of data, and
- Interpretation of data.
Plural sense
The plural statistics refers to numerical facts or observations collected with a definite purpose.
Statistics in this sense have the following characteristics:
- Statistics are a sum total of observations.
- Statistics are expressed quantitatively and not qualitatively.
- Statistics are collected with a definite purpose.
- Statistics in an experiment are comparable and can be classified into various groups.
Question 11.
Explain the uses of statistics. (Say 2015)
Answer:
We know that Statistics is an indispensable tool for an economist that helps him to understand an economic problem. Using its various methods, the effort is made to find the causes behind it with the help of the qualitative and the quantitative facts of the economic problem. Once the causes of the problem are identified, it is easier to formulate certain policies to tackle it. But there is more to Statistics. It enables an economist to present economic facts in a precise and definite form that helps in proper comprehension of what is stated.
Statistics also help in condensing the mass of data into a few numerical measures like mean, variance, etc. These numerical measures help summarize data.
In another instance, the economist might be interested in predicting the changes in one economic factor due to the changes in another factor. For example, she/he might be interested in knowing the impact of today’s investment on the national income in the future. Such an exercise cannot be undertaken without the knowledge of Statistics.
Sometimes, the formulation of plans and policies requires knowledge of future trends. Thus, statistical methods help formulate appropriate economic policies that solve economic problems.
Question 12.
State the two senses in which the word ‘statistics’ is used Elucidate. (March 2017)
Answer:
The word statistics is used in two distinct sense. Singular and plural. In the singular sense, the term ‘statistics’ means the science of collecting, classifying, and using statistics means numerical facts that are systematically collected.