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

Rajasthan Board RBSE Solutions for Class 11 Economics Chapter 1 Introduction to Statistics for Economics Textbook Exercise Questions and Answers.

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

RBSE Class 11 Economics Introduction to Statistics for Economics Textbook Questions and Answers

Question 1.
Mark the following statements as true or false.
(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. Statistics deals with both quantitative and qualitative data. Qualitative information describes those characteristics of an individual or a group which cannot be measured in quantitative terms. For example, marital status, level of education, etc.

(ii) True. Statistics is used to understand economic problems and finding the solution with the help of the qualitative and quantitative facts related to the economic problems.

(iii) True. Data enable economists to present economic facts in a precise and concise form. Since data itself is self-explanatory, it enables economists to present economic facts in a definite form.

Question 2. 
Make a list of activities in a bus stand or a market place. How many of them are economic activities?
Answer:
Activities in a bus stand
(i)  Buses parked and waiting for passengers
(ii) Queue at the ticket counter for buying tickets
(iii) Hawkers selling eatables and toys
(iv) Passengers having refreshments in canteen
(v) Conductor checking the tickets of passengers boarding the bus.

Activities (ii) and (iii) are economic activities as these are being undertaken for monetary gain. 

Question 3.
The Government and policy makers use statistical data to formulate suitable policies of economy development.’ Illustrate with two examples.
Answer:
Statistics provides knowledge of ongoing as well as future trends to help the government formulate plans and policies for economic development

Example 1: Statistical data related to education helps to ascertain the level of literacy in each state and in the nation as a whole. Accordingly, the government can formulate plans and policies to intensify programmes such as ‘Education For All’ in the states where the literacy rate is very low. 

Example 2: Poverty is one of the major obstacles in achieving rapid economic development Government can implement appropriate poverty alleviation programmes after collecting the statistical information about poor in a particular area.

Question 4. 
You have unlimited wants and limited resources to satisfy them. Explain by giving two Example.
Answer:
Every economy faces the problem of choice due to limited resources. Hence, every economy must decide on how much of each of the many possible goods and services it will produce as it cannot produce all that is needed.

Example 1: Rahul wants to buy an economics book and he also wants to watch a movie. But he has only 100 to spend. With limited money, he cannot satisfy,’ both his needs/wants.

Example 2: An economy has a limited labour supply and it needs to build a Cineplex and increase the production of car. However, it will have to make a choice between building a Cineplex and producing more cars for the economy with given limited resources.

Question 5. 
How will you choose the wants to be satisfied?
Answer:
Human wants are unlimited and it is impossible to satisfy all those wants. If one want of an individual is: satisfied, another takes birth. On the other hand, the resources used to produce goods and services that satisfy human wants are limited. Limited resources are incapable of satisfying unlimited human wants.

These resources are not only limited but they also have many competing usages. An individual, therefore, is required to make a choice between his or her wants. Economic problem arises the moment the problem of choice arises. For instance, if a consumer has limited money and time, he cannot buy everything that he wants. He or she has to decide among the most urgent and less urgent wants. Oven the available resources, a judicious choice has to be made so that maximum satisfaction can be achieved. 

Question 6. 
What are your reasons for studying economics?
Answer: 
Economics is a study of how individuals and society make use of scarce resources to fulfill 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.” Economics keeps individuals well-informed about choices and studies how to deal with problems and benefits from opportunities. it is also very useful in dealing with issues in various fields such as business, taxation, law and accounting. By studying economics one can be a good consumer and a good producer as well.

Question 7. 
Statistical methods are no substitute for common sense. Comment.
Answer:
There is a possibility of misinterpreting the statistical data. Hence, it should not be believed blindly.
Statistical data suffer from limitations such as:
(i) It may be influenced, biased or manipulated.
(ii) It may ignore the errors committed by an investigator during collection of data.
Thus, statistical methods should not be considered as substitute for common sense. Students are advised not to believe the statistical data blindly. They should evaluate the statistical inferences logically. They should also offend the inference if it violates common sense.