CBSE Class 11 Economics (Statistics for Economics) Important Questions

1. What is the importance of statistics in economics?

Answer:Statistics play a crucial role in economics as it helps in collecting, organising, and analysing data. It enables economists to understand economic problems, formulate policies, and make predictions. Statistical tools help in clearly presenting data, making it easier to interpret trends, compare different data sets, and draw conclusions.

2. Explain the various methods of collecting primary data.

Answer: Primary data refers to data collected firsthand. The methods of collecting primary data include:

• Direct Personal Investigation: The investigator collects data directly from the source.

• Indirect Oral Investigation: Information is gathered from intermediaries rather than the subject directly.

• Questionnaires and Schedules: A set of questions is given to respondents to fill in their responses.

• Observation: The investigator collects data through observation without direct interaction.

3. What are the differences between classification and tabulation of data?

Answer: 

• Classification: It refers to the process of grouping data into different categories based on common characteristics. It helps in simplifying complex data.

• Tabulation: It refers to the systematic arrangement of classified data in rows and columns. Tabulation helps in organising large amounts of data for easy comparison and analysis.

4. Describe the different types of graphical representation of data.

Answer: The main types of graphical representation of data include:

• Bar Graph: Used to show the frequency of different categories using bars.

• Pie Chart: A circular chart divided into sectors, showing the proportion of each category.

• Histogram: A graphical representation used for grouped data showing the distribution of numerical data.

• Line Graph: A graph that shows data points connected by straight lines to depict trends over time.

5. What are the merits and demerits of the arithmetic mean as a measure of central tendency?
Answer:

Merits:

• Simple and easy to calculate.

• Takes into account all the values in the dataset.

• Widely used for statistical analysis.

Demerits:

• Affected by extreme values, which can distort the result.

• Not suitable for qualitative data.

• It may not represent the central value in a skewed distribution.

6. Explain the concept of correlation and its types.
Answer: Correlation refers to the statistical relationship between two variables. It measures how one variable changes in relation to the other. The types of correlation include:

• Positive Correlation: When both variables move in the same direction (e.g., as income increases, expenditure increases).

• Negative Correlation: When one variable increases and the other decreases (e.g., as price increases, demand decreases).

• No Correlation: When there is no relationship between two variables.

7. What are index numbers? Discuss their uses in economic analysis.

Answer: Index numbers are statistical tools used to measure changes in the value of a variable over time. They are expressed as a percentage relative to a base period.
Uses:

• To measure inflation by comparing the price levels of goods and services.

• To track economic growth and trends over time.

• To compare the cost of living in different regions.

8. How do you calculate the median and mode from ungrouped data?

Answer:

• Median: Arrange the data in ascending or descending order. If the number of observations is odd, the middle value is the median. If even, the median is the average of the two middle values.

• Mode: The mode is the value that appears most frequently in the dataset. For ungrouped data, count the frequency of each value and the one with the highest frequency is the mode.

9. Discuss the significance of statistical tools in economics.

Answer: Statistical tools are significant in economics as they help in:

• Organising and simplifying data for better understanding.

• Analysing trends and patterns in economic data.

• Making informed decisions based on data analysis.

• Forecasting future economic conditions and helping in policy formulation.

10. How does sampling differ from the census? What are the advantages of sampling?

Answer:

• Census: In a census, data is collected from every individual in the population.

• Sampling: In sampling, data is collected from a selected group of individuals, which represents the whole population. Advantages of Sampling:

• Less time-consuming and cost-effective compared to a census.

• Easier to handle and analyse data from a sample.

• Useful when it is impossible or impractical to collect data from the entire population.

Here are 10 important questions from all chapters. For more detailed, chapter-wise questions, refer to the table above and download the PDF. This will help you gain a better understanding of each chapter and enhance your exam preparation.

How Do Economics (Statistics for Economics) Important Questions Class 11 Help You with Exams?

• Economics Important Questions for Class 11 focus on the key topics from each chapter, helping students understand what to study for exams.

• They guide students to practice the most frequently asked questions, making it easier to prepare efficiently.

• These questions are aligned with the Class 11 Economics syllabus, ensuring students cover all the important topics needed for exams.

• Practising these questions regularly helps students improve their understanding of concepts and build confidence.

• They serve as a quick revision tool, helping students recall key points before the exam.

• By solving these questions, students can assess their knowledge and identify areas that need more attention.

• They help students become familiar with the exam pattern and the type of questions they might face in the exam.

Vedantu's CBSE Class 11 Economics (Statistics for Economics) Important Questions provide a simple and clear way to study the key topics in the subject. These questions help students focus on important concepts, practice regularly, and improve their understanding. By going through these important questions, students can prepare effectively for their exams and feel more confident while answering. For more detailed chapter-wise questions and support, students can refer to Vedantu's resources and make their revision easier.

Additional Study Materials for Class 11 Economics