Important Questions for Class 11: Economics Part-b Unit-1

Economics should not only be talked about in the framework of knowledge of demand and supply theories, along with production, but also the ability to interpret data and make meaningful conclusions. That is precisely where the Part-B of Class 11 Economics, known as the Statistics of Economics is necessary. Unit 1, Introduction to Statistics, provides the background to the study of economic issues in the real world through the use of data. Being aware of the main concepts and key questions that this unit covered will allow you to receive a higher score and comprehend how economists make their decisions relying on facts and figures.

Unit Overview: Introduction to Statistics for Economics 

Unit 1 of statistics in economics is concerned with the fundamentals of statistics, its role in economics, and the limitations that it can possess. It trains students on how to analyze and use data in making economic decisions. The unit also assists in learning how numbers, averages, and percentages could be used to explain economic trends of growth, unemployment, and inflation.

Important Questions and Answers for for Class 11: Economics Part-b Unit-1 

Unit 1 of Class 11 Economics – Introduction to Statistics – builds the base for understanding how economists analyze real-world data. A clear understanding of concepts like data types, importance, limitations, and statistical methods will help you score well in exams and prepare for higher studies in economics and commerce.

Q1. What is Statistics in Economics?

 Statistics in economics refers to the collection, classification, presentation, analysis, and interpretation of numerical data related to various economic activities. It helps economists understand economic phenomena, test hypotheses, and make policy decisions.
For example, data on unemployment, national income, and population growth are all studied statistically to identify trends and patterns.

Q2. Define Statistics in the Singular and Plural Sense.

• Plural Sense: Refers to numerical facts or data collected about a particular phenomenon (e.g., income of people, prices of commodities, etc.).
• Singular Sense: Refers to the science of studying numerical data, involving collection, classification, and interpretation.
   

Q3. State Two Features of Statistics.

1. Numerical Data: Statistics deals only with numerical data, not descriptive information.
2. Aggregate of Facts: It considers aggregates of data, not individual items (e.g., national income, not one person’s income).
    

Q4. Mention Two Limitations of Statistics

1. Does Not Study Individuals: Statistics deals with groups, not individuals.
2. Can Be Misused: If data is collected or interpreted wrongly, it can lead to misleading conclusions.
    

Q5. What is the Importance of Statistics in Economics?

 Statistics helps economists to:

• Understand economic problems like poverty, inflation, and unemployment.
• Formulate policies using reliable data.
• Compare economic growth between different years or countries.
• Test economic theories and make forecasts.
   

Q6. Explain the Scope of Statistics.
The scope of statistics includes:

1. Descriptive Statistics: Involves collecting, presenting, and summarizing data (like averages, graphs, etc.).
2. Inferential Statistics: Involves drawing conclusions or making predictions based on sample data.
    

Q7. Differentiate between Qualitative and Quantitative Data.

The difference between qualitative and quantitative data is tabulated below: 

 

Basis	Qualitative Data	Quantitative Data
Meaning	Refers to descriptive attributes	Refers to numerical information
Example	Gender, education level	Income, price, population

 

Q8. What are the Functions of Statistics?

1. Simplifies Complex Data: Converts raw data into simple tables, averages, and graphs.
2. Helps in Comparison: Allows comparison of economic data across regions and time.
3. Helps in Forecasting: Predicts future trends using past data.
4. Assists in Policy Formation: Provides factual data for planning and policy-making.
    

Q9. What are the Stages of Statistical Study?

1. Collection of Data
2. Organisation of Data
3. Presentation of Data
4. Analysis of Data
5. Interpretation of Data

Each stage ensures that the final result is meaningful and helps in economic decision-making.

Q10. Distinguish Between Primary and Secondary Data.

 

Basis	Primary Data	Secondary Data
Source	Collected first-hand by the investigator	Collected from existing sources
Example	Data collected through surveys	Data from government reports, RBI, etc.

Q11. What are the Limitations of Statistics in Economics?

• It cannot study qualitative aspects like honesty or intelligence.
• It does not reveal the true cause behind economic problems.
• It may be misused intentionally to show false results.
   

Q12. Why is Statistics Called Both a Science and an Arts subject?

 It is a science because it follows systematic methods of data collection and analysis.
It is an art because interpretation and presentation of results require judgment and creativity.

FAQs on Class 11: Economics Part-b Unit-1 

What is the main objective of studying statistics in economics?

To understand economic problems with the help of data and make decisions based on evidence rather than assumptions.

Who is known as the father of modern statistics?

Ronald A. Fisher is known as the father of modern statistics for developing key statistical methods used in research and economics.

Is statistics only about numbers?

No. While it deals with numerical data, its purpose is to derive meaningful insights, patterns, and interpretations from those numbers.