NCERT Solutions for Class 11 Statistics Chapter 1 Introduction

Ans : (i) False
Statistics deals with both quantitative data as well as with qualitative data. Statistics not only reveals quantitative information but also reflects the qualitative aspect of data like better, worse off, highly skilled, etc. Although, the qualitative aspects can neither be easily measured nor can be expressed in quantitative terms, but statistics describes the attributes of these variables.


(ii) True 
Statistics acts as a tool in the hands of economists that enables them to understand and evaluate an economic problem. The causes of a problem are identified through statistical tools and methods and policies and rectification measures are formulated accordingly.


(iii) True
Data enable economists to present economic facts in a precise and concise form. Data itself is self explanatory. For example, if the per capita monthly income in India has increased from Rs 300 to Rs 600 during 1974 to 1984, then just by looking at the figures an economist would not only understand the quantitative increase in the per capita income but also can assess the implicit qualitative aspects associated with this increase like higher standard of living, low level of poverty, higher level of savings, etc. 

Ans : The following are the activities that constitute the ordinary business of life: 
1. Buying of goods and services. 
2. Rendering services to a company by employees and workers. 
3. Selling of goods and services. 
4. Production process carried out by a firm.
Yes, the above mentioned activities are regarded as economic activities. This is because, these activities involve the use of scarce resources to carry out production, consumption, saving, investment, etc. These activities involve the exchange of money to earn livelihood. 

Ans : The statistical data is of prime importance for the government and the policy makers. The statistical data not only help them to analyse and evaluate the outcomes of the past policies but also assist them to take corrective measures and to formulate new policies accordingly. Further, the statistical data also help the government to ascertain various needs and priorities for the pursuit of the common goal of economic development. For example, if Indian Government aims at encouraging the production level, then it formulates its economic policy based on the average production level of the past three years. Another example could be the preparation of government budget. The previous data of government expenditures and government revenues are taken into consideration for estimating the allocation of funds among various projects. 

Ans : Every economy faces the problem of scarcity. 'Scarcity of resources' implies that there are unlimited wants to be fulfilled by limited resources. The basic concern of an economy is to allocate the scarce resources to the best possible use in the face of unlimited wants. Thus, the problem of scarcity forces an economy to make a choice among various alternatives. For example, an economy endowed with a given level of resources has to make a choice beüeen the production of guns and breads. The choice of the economy (i.e. either to produce guns or bread and in what quantities) depends on the need and goal of the economy. While the production of bread will make the economy devoid of the security level, whereas, the production of guns will not provide sufficient food for the population. The same problem of scarcity can be felt at an individual level. For example, with a given amount of money say, Rs 20,000, one cannot buy a TV and a sofa set simultaneously. Thus, the individual needs to make a choice between the alternatives according to his/her priority. 

Ans : An individual fulfills his/her wants according to his/her needs, satisfactions and priority attached to different wants. Those wants will be fulfilled first that provides the highest satisfaction to the individual and to which the individual has attached the top most priority. Further, the choice of want also depends on the need of the hour and availability of the goods and also on the availability of means (money) to realise a particular want. Thus, depending on all these conditions, we can say that an individual having sufficient budget will fulfill a particular need that would fetch him/her the highest possible satisfaction.