1.

Please give me notes of Concept of Economics and significance of statistics in economics

Answer» Some recent definitions have been called growth definitions.\tAccording to Professor Henry Smith, "Economics is the study of how in a civilized society one obtains the share of what other people have produced and of how the total product of society changes and is determined."\tAccording to Jacob Viner, "Economics is what economists do."\tAccording to Paul A Samuelson, "Economics is the study of how men and society choose, with or without the use of money, to employ scarce productive resources which could have alternative uses, to produce various commodities over time and distribute them for consumption now and in future amongst various people and groups of society."Importance of statistics:\tFormulation of economic laws:\xa0it helps in formulation of laws and models e.g. law of\xa0demand has been developed by the inductive method of genralisation which is based on statistical principles.\tUnderstanding economic problems:\xa0it plays\xa0a vital role in understanding and solving economic problems such as poverty, unemployment, etc.\tStudy of market structures:\xa0study of monopoly, monopolistic competition, oligopoly, and monopolistic competition requires statistical comparison of market prices, cost, and profits of individual firms.\tIntersectoral anf intertemporal comparison: statistics helps in the comparision of different sectors of the economy and also helps in comparison of variables in two different time periods\tEconomic forcasting:\xa0by using statistical tools , methods, and techniques one can forcast e.g growth of the country in the coming fiscal year or rate of inflation in the coming month.\xa0


Discussion

No Comment Found

Related InterviewSolutions