RBSE Class 11 Economics Notes Chapter 1 Introduction to Statistics for Economics

These comprehensive RBSE Class 11 Economics Notes Chapter 1 Introduction to Statistics for Economics will give a brief overview of all the concepts.

RBSE Class 11 Economics Chapter 1 Notes Introduction to Statistics for Economics

Economics - Meaning and Importance:
Economics is a study of how individuals and society make use of scarce resources to fulfil their needs. In the words of Prof. Robbins, “Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.”

An economy is a process of production, exchange and consumption of goods and services; and distribution of income in a country or region.

• Production - processes used to transform raw materials into final goods or services
• Exchange - transfer of the ownership of goods or services
• Consumption - act of satisfying one’s needs and wants
• Distribution - division of national income into rent, wages, interest and profits

Participants in an Economy

• Consumer - buys goods to satisfy own or family’s needs
• Seller - sells goods to earn a profit
• Producer - produces goods
• Service-holder - works for some other person and gets paid for it
• Service-provider - provides service to others in exchange for a payment

Microeconomics:
Microeconomics is the branch of economics that studies the behaviour of individual decision-making units such as households and firms.

Macroeconomics:
Macroeconomics is the branch of economics that studies the behaviour of factors affecting the economy as a whole.

Scarcity:
Scarcity is a situation when demand for a good exceeds its supply even at a zero price. Scarcity occurs when there are limited resources in relation to unlimited wants.

Choice:
Choice is the act of selecting among restricted alternatives.

Statistics - Meaning, Scope and Importance in Economics
Data helps analyse the various factors underlying an economic problem.
Statistics is the science which deals with the methods of collecting, classifying, presenting, comparing and interpreting numerical data collected, especially for drawing conclusions.

Statistics in Two Distinct Senses

• Singular - science of collecting, classifying and using statistics
• Plural - numerical facts collected systematically 

Stages in Statistical Study

• Collection of data
• Classification of data
• Presentation of data
• Analysis of data
• Interpretation of data 

Importance of Statistics in Economics

• Helps in finding causes behind economic problems
• Enables to present economic facts in a definite form
• Helps in finding relationships between various economic factors
• Helps in predicting the changes in one factor due to another factor
• Provides knowledge of future trends to formulate plans and policies