## Karnataka 1st PUC Economics Question Bank Chapter 1 Statistics for Economics Introduction

### 1st PUC Economics Introduction TextBook Questions and Answers

Question 1.
A lawyer, a doctor, a banker, or a taxi driver are called…………………..
(a) Service providers
(b) Service senders
(c) Trustees
(d) Social workers
(a) Service providers

Question 2.
Scarcity is the root of ……….
(a) All economic problems
(b) Political problems
(c) Social problems
(d) All problems
(a) All economic problems

Question 3.
The long queues at the railway station, bus stand, cinema theatres are all manifestations of…………………….
(a) Publicity
(b) Plenty
(c) Scarcity
(d) Quantity
(c) Scarcity

Question 4.
Alternative uses of resources give rise to the problem of …………………….
(a) Rights
(b) Choice
(c) Price
(d) Chance
(b) Choice

Question 5.
Economics is the study of mankind in…………………….of life.

II. Fill in the blanks

Question 1.
When you buy goods you are called a …………………….
Consumer

Question 2.
When you produce goods, you are called a…………………….
Producer

Question 3.
When you sell goods for profit, you are called a…………………….
Seller

Question 4.
Resources are limited, but wants are …………………….
Unlimited

Question 5.
M Data, number, equations are being used in …………………….
Statistics

III. Answer the following questions in a word/sentence

Question 1.
What is economics according to Alfred Marshall?
According to Alfred Marshall “Economics is the study of mankind in the ordinary business of life. It examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of well-being”.

Question 2.
Give the meaning of statistics in the plural sense.
In the plural sense, statistics mean numerical facts systematically collected.

Question 3.
What are economic data?
Economic data refers to statistical information about economic activities. An economic data is a tool, which helps in understanding economic problems by providing information.

Question 4.
Which subject enables an economist to present economic facts in a precise and definite form?
Statistics enables an economist to present economic facts in a precise and definite form.

Question 5.
The production of rice in India has increased from 39.58 million tonnes in 1974 – 75 to 58.64 million tonnes in 1984 – 85. Identify whether the data used in this statement are quantitative or qualitative.
As the production is expressed in terms of weights i.e., in million tonnes, it is quantitative data.

Question 1.
Give two examples for quantitative data.
The two examples for quantitative data are:
(a) The production of foodgrains during 2010-11 was 253 million tonnes,
(b) The total population of India as per die 2011 census was 121 crores.

Question 2.
Give two examples for qualitative data.
The two examples for qualitative data are:
(a) As per the 2011 census there were 61 crores of males and 59 crores of females.
(b) About 74% of the population are literates in India as per the 2011 census.

Question 3.
Mention any two scarcities in your daily life.
The two scarcities in our daily life are water, food, fuel. etc.

Question 4.
Write any two resources which have alternative uses.
The two resources which have alternative uses are water and land.

Question 1.
How will you choose the wants to be satisfied?
It is a well-known fact that human wants are unlimited and resources to satisfy them are limited. Though human wants are unlimited these wants vary in intensity and urgency. Some wants are more intense and urgent than other wants. We give top priority to more intense and urgent wants.

For instance, a family may want to go on a tour to America and also want to have a flat. We expect that the family opts for buying the flat first and choose to go to America later.

Hence, a consumer always selects that combination of products that gives him maximum satisfaction. Similarly, a producer may take the best combination of two inputs so that it requires less cost of production and get maximum profit.

So, we have to choose those wants to be satisfied first which requires immediate attention. This is what we leam from the study of economics.

Question 2.
Statistical methods are no substitute for common sense. Comment with examples from your daily life.
The statistical methods are no substitute for common sense. It means that the use of statistics is not good always in all areas. Sometimes, it gives a result that does not sound in accordance with the situation.

There is an interesting story7 that is told to make fun of statistics. It is said that a family of four persons (husband, wife, and two children) once set out to cross a river. The father knew the average depth of the river. So he calculated the average height of his family members. Since the average height of his family members was greater than the average depth of the river, he thought they could cross safely. Consequently’, some members of the family (children) drowned while crossing the river.

Here, does the fault lie with the statistical method of calculating averages or inappropriate use of the statistical tools?

If we take another example, suppose an investigator presence of conducts a survey and finds that there were a large number of hospitals in a particular locality and he also finds that there were more deaths in the same locality. The survey concludes that more hospitals were responsible for the high death rates in the locality. This is a totally incorrect interpretation

Question 3.
Scarcity is the root of all economic problems. Explain the statement.
It is true that scarcity is the root of all economic problems. If there had been no scarcity there would have been no economic problem. This would have not necessitated the study of economics.

In our daily life, we face various forms of scarcity. The queues at the railway booking counters, overcrowded buses, heavy traffic on roads, the rush to get a ticket to watch a movie of a popular film actor or actress, are all the manifestations of scarcity. We face scarcity because the things that satisfy our wants are limited in availability.

Further, the resources which the producers have are limited and also have alternative uses.

For instance, take the case of food that we eat every day. It satisfies our want of nourishment. Fanners employed in agriculture grow crops that produce our food. At any point in time, the resources in agriculture like land, labor, water, chemical fertilizers, etc, all these resources have alternative uses. The same resources can be used in the production of non-food crops. Thus, alternative uses of resources give rise to the problem of choice between different commodities that can be produced by those resources.

Question 4.
Briefly explain how statistics helps to study economics? (S – 2018) (N – 2018) (Board Paper)
Statistics plays a very important role in the field of economics It helps in the study of economics in many ways:

(a) It helps to understand economic problems: By using various statistical tools, the effort is being made to find the causes behind the economic problems with the help of qualitative and quantitative facts. Once the causes of a problem are identified, it is easier to formulate certain policies to tackle them.

(b) It enables an economist to present economic facts in a precise and definite form: Statistics help economists to present economic facts with accuracy. It also helps in proper comprehension of what is stated in the subject matter. When economic facts are expressed in statistical terms, they become exact. Exact facts are more convincing than vague statements. For instance, saying 350 people have died in Kashmir unrest since 2000, is more accurate than saying that a lot of people have died in the unrest.

(c) Helps in condensing mass data into a few numerical measures: Statistics condenses the mass data into a few numerical measures like mean, variance, correlation, etc. These numerical measures help to summarise data. For example, it would be impossible to remember the income of all the people of a country. But we can remember average income i.e., per capita income.

(d) It is used to find relationships between different economic factors: An economist may be interested in finding out what happens to the demand for a commodity when its price changes or what will impact inflation when the government has more budget deficits. Such situations can be dealt, if any relationship exists between the various economic factors. Here, the nature of the relationship can be studied with the help of statistical tools.

(e) It helps in the formulation of plans and policies: Sometimes, formulating plans and policies requires the knowledge of future trends. For instance, an economic planner has to decide in 2010 how much the economy should produce in 2016-17. In other words, one must know what could be the expected level of consumption in 2016-17. So, the statistical tools to predict consumption in 2016-17 could be based on the data of consumption of past years obtained by surveys.

Question 1.
Mark the following statements is true or false
(a) Statistics can only deal with quantitative data (False)
(b) Statistics solves economic problems. (True)
(c) Statistics is of no use to economics without data. (False).

Question 2.
Make a list of activities you find in a bus stand or a marketplace. How many of them 1 are economic activities?
Activities in a bus stand:

• Selling Pani puri, masala puri, etc.
• Stationery shops
• Bakery stalls.
• Hotel
• Banking activities

Activities in the marketplace:

• Purchase and sale of fruits
• Purchase and sale of flowers
• Purchase and sale of steel items, etc.
• Purchase and sale of vegetables
• Purchase and sale of clothes

All the above are economic activities.

Question 3.
‘The government and policymakers use statistical data to formulate suitable policies of economic development. Illustrate with two examples.
The government and policymakers use statistical data to formulate suitable policies for economic development. This can be illustrated with the help of the following examples.

Example 1: An economic planner has to decide in 2015 how much the economy should produce in 2020. That means they should know the expected level of consumption to decide on production.

Example 2: An agricultural scientist should predict the future requirements of chemical fertilizers and seeds for 2025 based on the availability of average cultivable land by 2025.

Hence, the policies and programs could be based on the data of consumption of past years or of recent years obtained by surveys. The statistical methods help in formulating appropriate economic policies to solve economic problems.

Question 4.
‘You have unlimited wants and only limited resources to satisfy them”. Explain this statement by giving two examples.
Generally, every one of us has unlimited wants and limited resources. Tins can be explained with the help of the following examples.

Example 1: Suppose your pocket money is just Rs. 100. This amount will restrict your purchasing only to essential requirements. If you had more pocket money you could have purchased almost all the things you wanted.

Example 2: The resources which the producers have been limited. They face a shortage of capital, laborers, etc. If a producer has just Rs. 10,000 as money capital for investment, he can start any one particular business. He cannot start all types of business or factories due to a shortage of capital.

Question 1.
The father of Economics is
(a) Alfred Marshall
(c) J M Keynes
(d) None

Question 2.
The definition is given by Adam Smith
(a) Welfare definition
(b) Wealth definition
(c) Scarcity definition
(d) None of these
(b) Wealth definition

Question 3.
The economist said ‘Economics is neutral between ends.
(a) ACPigou
(b) AMarshall
(c) LRobbins
(d) None of these
(c) L Robbins

Question 4.
The main cause for the economic problem is:
(a) Unlimited wants
(b) Scarcity
(c) Alternative uses
(d) None of these