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# TR Jain & Vk Ohri (2017) Solutions for Class 11-humanities Economics Chapter 1 - Concept Of Economics And Significance Of Statistics In Economics

TR Jain & Vk Ohri (2017) Solutions for Class 11-humanities Economics Chapter 1 Concept Of Economics And Significance Of Statistics In Economics are provided here with simple step-by-step explanations. These solutions for Concept Of Economics And Significance Of Statistics In Economics are extremely popular among class 11-humanities students for Economics Concept Of Economics And Significance Of Statistics In Economics Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the TR Jain & Vk Ohri (2017) Book of class 11-humanities Economics Chapter 1 are provided here for you for free. You will also love the ad-free experience on Meritnation’s TR Jain & Vk Ohri (2017) Solutions. All TR Jain & Vk Ohri (2017) Solutions for class 11-humanities Economics are prepared by experts and are 100% accurate.

#### Question 1:

How would you distinguish between economic activity and non-economic activity? Draw a list of economic and non-economic activities of your family members. Give logical reasoning in support of your answer.

 Basis Economic Activity Non-Economic Activity 1. Definition Any activity which is carried out using scarce resources is called economic activity. Any activity which is carried out without using scarce resources is called non-economic activity. 2. Market Value These activities have market value. These activities do not have market value. 3. Money Measurement These activities can be measured in terms of money. These activities cannot be measured in terms of money.

Economic and non-economic activities are listed below.

Economic activities:
1. Services of a maid
2. Vegetables purchased by mother
3. Dad working in the office
4. Mother making snacks for sale

All the above activities involve the use of scarce resources for carrying out production, consumption, saving, investment, etc and are undertaken with the aim of monetary gain. Thus, these activities are called economic activities.

Non-economic activities:
1. Mother teaching her son
2. Contribution to charity
3. Watching movie in the house
4. Food prepared by mother for self consumption

The above mentioned activities are concerned with psychological needs and cannot be measured in terms of money. Hence, these activities are regarded as non economic activities.

#### Question 1:

List five examples each of 'data which are Statistics', and 'data which are not Statistics'. Information should be related to the performance of your school in sports and academics.

 Data which are not statistics Data which are statistics 1. Sachin scored 59 in an inning. 1. Over the last 10 innings Sachin scored more than 50 in 3 innings. 2. Rohan took 5 wickets in a match. 2. Over the last 10 matches Rohan took 5 wickets in an inning 3 times. 3. Vijay got 45 marks in English. 3. Average height of 6 basket ball players is  5.9 feet. 4. Rohan made 5 goals in a match. 4. Our School won 5 times in last 7 matches. 5. Sushma aims to get 90% in class 12th. 5. 10 student of class 12th scored more than 90%.

#### Question 1:

Write five examples each of 'quantitative variables' and 'qualitative variables'. Quantitative variables should be the well known terms of Economics, like production of wheat in India over the last 10 years.

 Quantitative Variable Qualitative Variables 1. National Income 1. Complexion 2. Aggregate consumption 2. Maturity 3. Investment 3. Appearance 4. Inflation rate 4. Intelligence 5. Saving by an individual 5. Beauty

#### Question 1:

Complete the following observations:

(i) Statistics means ____________.
(ii) Statistics and economics are ____________.
(iii) The term population refers to ____________.
(iv) Descriptive Statistics means those methods ____________.

(i) Statistics means quantitative information. That is, statistics takes account of only quantitative data. In other words, statistics is expressed only in numerical terms. On the other hand, the qualitative variables such as tall, reduction, etc. are not considered statistics. For instance, “unemployment has declined” is not a statistical statement. However, “unemployment has declined by 2% during 1997-98” can be termed as a statistical statement.

(ii) Statistics and economics are complementary to each other. Statistics forms the basic tool for understanding and analysing the magnitude and relationship between various economic variables, thereby, helps in the formation of appropriate policies and research. It is only when economic facts are expressed in statistical terms that they become more exact.

(iii) The term population refers to the aggregate of all the units to be studied for an investigation.For example, suppose a survey is conducted to judge the performance of the students in a school. Here, students of the entire school is called the population or universe.

(iv) Descriptive statistics means those methods which are used for the collection, presentation and analysis of data. It consists of all the methods that helps in the estimation of various parameters like averages (mean, median and mode),deviations ( mean deviation, standard deviation) and measures of correlation. for e.g. descriptive statistics is used to know the average marks of a particular class, measuring the variation in the prices of stocks etc.

#### Question 2:

Prepare a list of statistical information that you will facilitate comparison of academic performance of your school with others in your neighbourhood.

To compare the academic performance of your school with other schools in your neighbourhood, the following statistical information would be required:-

i) Census of schools providing information about the total number of schools, total number of students in each school, etc.
ii) Mean marks (in %) of students in each class in each school.
iii) Average marks (in %) for the each of the schools as a whole.
iv) Variation of marks in each class of the school form the average marks for the school as a whole.
v) Coefficient of variation (at school level and at class level) for each of the schools.

School with the highest mean marks and the lowest coefficient of variation can said to be performing academically better than other school.

#### Question 3:

Write two such pairs of statistical variables that show cause and effect relationship with each other.

The following are two pairs of statistical variables that show ‘cause and effect relationship’ with each other:

i) Unemployment rate and inflation rate: Unemployment and inflation are negatively related to each other. In other words, with a decrease in unemployment rate, the inflation rate rises and vice-versa. For instance, with the decrease in the unemployment, the income of people increases. This results in an increase in the demand for goods and services, which in turn leads to an increase in the general price level (inflation).

ii) Wage rate and price level: Wage rate and price level are positively related to each other. In other words, an increase in the general wage rates, results in a rise in the general price level. With an increase in the wage rate of workers, the cost of production increases. To maintain their level of profit margins, the producers pass on this increase in the cost of production to consumers in the form of higher prices.

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