CHAPTER -1

INTRODUCTION

)
-
I Choose the correc t answers (each carries ONE mark
for payme nt, you are called .
1. If you are in job, you are work ing
Em(:!IO'.l:'.ee d) Truste e -
a)Unemployed b) Leader cl
2. Sca rcit y is the root of pro bl ems
l proble ms d) All
a) all econo mic (:!roblems b) Social proble ms c) politica
theatre s are all manife stat ions of -
3. The long queue s at railway station , bus stand, cinema
a)Publicity b) scarcit'.I:'. c) plenty d) Quant ity
m of
4. Alterna tive uses of resources give rise to the proble
a)Rights b) Price c) choice d) chance -
ordina ry business of life.
5. This subject is mainly the study of manki nd in the
gy
a)History bl Economics c) Politica l science d) Sociolo
Fill in the blanks (each questio n carries ONE mark)
II
1. When you buy goods, you are called a Consumer.
When you produc e goods, you are called a Produc
er.
2.
When you sell goods for profit, you are called a Seller.
3.
4. Resources are lim ited , but wants are Unlimited.
ics. i
5. Data, numbe rs, equati ons are being used in Statist
word/ senten ce (each carries ONE mark)
Ill Answe r the followi ng questio ns in a
1. What is econom ics accord ing to Alfred Marsh all?
mics is mainly aroun d the study of
Acco rding to Alfred Marsh all " The subjec t econo
manki nd in the ordina ry business of life"
2. What is econo mic data?
to the proble ms faced by a nation .
Economic data refers to econo mic issues related
rent, and interes t. What it is called ?
3. The Nation al Incom e is divide d into wages, profit,
Distrib ution .
4. What is Statistics?
ed system atically .
Statistics refers to numer ical inform ation collect
senten ces ( each quest ion carries TWO
IV Answe r the follow ing questi ons in about four
marks)
1. Gener ally, in which 3 parts econo mics is discussed?
a) Consu mption b) Produ ction c) Distrib ution
emplo yer.
2. Menti on the differe nces betwe en emplo yee and
for others and receiv es payme nt fo r hi s wo rk
Employee:A person who is appoin ted to work
is called as an emplo yer.
ody and pay wage to him .
Emplo yer:An Emplo yer is one who emplo ys someb
3, Mentio n any two scarcit ies in your daily life.
a) Scarcity of drinkin g water
b) Scarcity of transp ort
c) Scarcity of land
uses.
4. Write any two resour ces which have altern ative
a) Water b) land c) Sugar
V · ab ou t t we Ive senten ces ( each questi on carri es 4 marks )
Answe r the follow ing questi o ns 1n
,,
1. ate this statem ent
We are not as luck y as Aladdi n in real life" Elucid
· I .
Aladdi n was a luck y guy · He h ad a magic amp. When eyer and whate ver he wa nt ed, he
just
.
d · d . .
had to rub his magic lamp li f e w e canno be
t
an a ge n ie app eare to ful fil his wish. In real
J
1
.

2
 - - - - r dS ludy tl A 1 11 h like hi m w I I m1 ted w ,H v,., <1 1, t t1.:J1,1 c
la np. Fo r t'X 1 rp e 1f vo have en ouch pock c, nr•y, you 1 , rch 1 ,, almn t 1 I I Ile
things you wante>d . But 1ncc your po ckPt money I~ l1r111ti>d you hJv, to c II iose oniv t 11n•,e
things that you want th e rn os t Jim 1• the basi c tec1ching of f:cor1orn1 v , In econo1rncs we
study how human be I11 ~s try to sati sfy their unl1m1tPd wc111t·, with l1rn 1ted r;,sour_c_e_s _ __
1

2. 'Scarcity Is the root of all ec onomic problems.' Explain the st,it emr>nt
Scarcity 1s the root of all econorrnc problems If there had been no sc,iruty thL'r•' would
have been no econom rc problem This would have not necess1t,l!Pd the study of
economics In our daily life, we face various forms of scarcity The long queues ,it railwJy
booking counters, crowded buses, the rush to get a ticket to watch a movre, a1e all th,.,
manifestations of scarcity . We face scarcity because our wants are unl1m1ted and the
resources we have to fulfil our wants are l1m1ted .
Further, the resources which the producers have are l1m1ted and also have altern,ltlve uses
For example take the case of food that we eat every day. It sat1sf1es our want of
nourishment. Farmers employed In agriculture grow crops that produce our food . At any
point of time the resources In agriculture like land, labour, water , chemical fertilizers etc,
are given . All these I esources have alte1 native uses, The same resources can be used in the
production of non - fo od c1ops also . Suppose we have all these resources In enough
quantity we could gro"' both food crops and non-food crops as much as we wanted Now
the question comes whether we have to produce food crops or non food crops Therefore
Scarcity of resources and alternative uses of resources gives rise to al l econom ic problems

3 Briefly expla in how Sta t1 st1cs helps to study economics?

Stat1st1cs p lays a ve ry important role in the field of Economics It h elps In the study of
economics in many ways :
a) It hel ps to u nders t and economic probl ems: By using various stat 1st1ca l tools , effort
1s being made to find the causes behind the economic problems w ith ~he help of
quantitative and qualitative facts .
b) It enables an econ omi st to pr es ent econ o m ic fac t s in a precise and definite form:
Stat istics he lp the economists to present economic facts w ith accurac1i When the
economic facts are expressed in statistical terms, they become e'\act Ex If you say
9286 peop le have died in Karnataka due covid-19, Is more acc urate than thousands
have died in Karnataka due to covid-19.
c) He l ps in condensing mass da t a into a few n umerical measures: The stat1st1cal
measures like rnean, variance, co 1relation etc help to summarise data For
example, 1t wo u ld be 1mposs1ble to remember the income of all the people of a
country. But we can remember average income I e per capita income
4. "Statistical methods are no substitute for common sense" Explain with the example.
The statistical methods are no substitute for common sense. It means that the use of
statistics is not good always in all the areas . Sometimes, It gives the result that which does
not suit to the real situation .
There is an interesting story which is told to make fun of statistics. A family of four persons
(husband, wife, and two children) once set out to cross the river. The fat her knew the
average depth of the river. So he calculated the average height of his family members .
Since the average height of his family members was greater than the average depth of the
river, he thought they could cross safely. Consequently, some members of the family
(children) drowned while crossing the river. Fathers' use of statistics while crossing the
river failed . It shows the inappropriate use of statistics, instead of using common sense .

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3
 CHAPTER - 2

COLLECTION OF DATA
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~-------:--:-.:-::=:::;;-;~;;:~e~a;c~hquest ion ca rr·11 1e=~s~O~\J'..:E~. . m~a:.'.r::.k) .. ~ - - - - - - - - - - - - ;
I Ch
oose the cc rr ect ans\\ers ( ·e· better resu lts
· • D::ita g1\ :,
1. \\ h1ch m
et hoc of co lect1on ° -
. _ . , 1 lnno\ at1on
d) 011i •s;!t~r1~b~u:.:t1~ 0'..:n'..-----------------{
··-
b' SaP1p1e ~ur.ev c. ..,
al Census re serious · -
1 ~___J,--------:-- , • ., • .., o\, ng erro r s mo ) D ta error d' Calcu 1at 1on e rror
2 \\ h1cl' o l e '" - sampling error c a .... atched is
a)San1pling error bl non . \\h1ch react1ot"S ca be w , .
d , . 0 ect1on of data in cl Personal interview d) E-ma il
The met ho 0 bl t,.la1 n" quest ,onna 1re
3.
I
a)Teleohone rten e\\
L

rl quest on earn -
"' •e, ONE mark .
F ' ,., the t-,a:1~s teaL, i: d Primary Data.
II ta roPected b, ;'ie 1·1 ,est ga;or :s ca ,, e . at snorte r t ime 1s Telephone interview.
I1 0 a ._ . . ,., obta n1n" n'o rmat •on 3
., T•,e rr et ri cc o· '1 te r \ e\\ . . " nal interview method .
- \ ., , e,oe ns, e ,.,, e,'lod • . O ' 'lter\ e,\ s Perso
b
·1· . .
ed b\ · terates a re Mai ing Questionnaire
I3 1'- 5 ,
, ch ·an:1ot e us
~, e met nod C'' oa;a C0 1ect1on \\ r1 '- '
-"
- - . o' ·10 a ~ .:a rr ed out once ,ri 1Q_,ea rs.
5 Le '1 ~L. ~ . · .)
l\'atc h ; he ·0 · O\\ ' n g ,:ota S marks Dre-test ng o' cJest onna re (4)
I Ill
ia' Pe rsona .,ter. e\, co,e rs e,er\ nd i, dua l (5)
\bl f\ la rig Q1.est onna ·re
I (c' Te eo hone '1ten e,, Loss 0 , ques: onna 1re (2)
Cheaper or re at 1, e l,. O\\ cost (3)
\a l O ot s.," e\
\lore e,oens \e (1)
1e 1 CersL.S ,
~~ , es• "'1S ·n a ,,·crd seri :ence \eaci. quest ion ca·· es O'iE r-iark)
I\ .\1s\\er t'le '.J C\\ ;,. ..,... ' ''--' ' ' ·

\\ ha; sa,a ab e'

.\, ar ab e s a , al,.e \\., .::I. s subject to change fro ri t r--e t~ ~ir,e .
~ \\ r :e the .,, ea r.1;ig o· Ce1sus"'
Cens us ,5 a sv , e\ " ..,,c, nctLJdes e,e r\ eleme nt o' Po:::-c.l at ion .
3. \\'h at s Sa"' O e Su~ e,""'
A. sarp,e Su'\ e\ s ;"e sur, e\ conducted on a group or sec:·on of pop ul ation frorn which
in'ormat or s to oe obta ned
4 Give the mean ng of samp ing error.
, Samp ncb er•o r re;e r,- to the d ffe rences bet\\ een the sample est imate a ·1d th e actua vall! e
of a charac:e r s: co· t1-,e popu at on .
5 Expand NSSO
I l\iat ona l Sa mp e Sv,e\ Organ1sat1on .
J6 bpand CSO .
Ce11tra l Stat st ca l Organisation .
I
7 hpa'ld DGC S
l
I
1 Directorate Gene·a of Commercial Inte lligence and Stati st ics.
V I Ans\\e r the 'o ''lo,' 1 g ques fions ·1n a bout tou
· r sentences (each question ca rri es T\v O ma r~sl
l j tvlent on the t\\o sources of data
a) Pr '11a'\ Data
I b) Secondar\ Data
I 2
\\ rite any two aua '1 t1es of good quest ,onna tre .
a) Quest 1on r'a1re should not be too long.
b) Quest ,on"a re shou ld be prec ise and clea r
3
r--.ient on the methods of collecting data .
a) Pers ona, ,rtel'\ le\\ method \
b) Telephone 11terv1e\, method
\
cl f\la 1ling Quest1onna i•e
l
 II I/Jr 111 tlH d ,,, , r ' f I I ' # ,, , , , I

( 11 tr•,1J', ',tJ r /I• f

1) /I 111c.ludr••, r v••r /<I< 11, r, ,,J 11,

J)<JJJU/.Jt ICJfl
11) lhPI" rri.Jy 11<J1 I) , ,, 1, ;r,,i<• r hr·r, ~ .,,.
iii) /I i·, 1•xpo11•,1vr 1,

IV) /1 t·, trrrw I ot1<;Urrllr I!

J, NdtrH ' thr? trJP\h(J<L IJf ',' I<>(

;,i) I o\ le: ry rn r,t ll<Jd
b) U·,r; of (,H1don 1 rrUrrl!Jr•r \ .Jr,"
============='=
G. Givu t/1(1 r11,,,m1n1: <Jf Pilot '>1;1 ;, I
Onc.c• d quo•,t10n11,11r, I'., rr•.,d /, l ·.,, ', ✓ ',,,-
known a·, />i10t '; ur·Jo f ,,r prr tr• ,,,,. ·,; .,_, :.. ·, ,,
">hortcom1nw, ,rn d
VI Aw,wr1r thr! fol io ,
1, Do<•, 1he lcJt tr•r I rnr 1 h<Jd al 1 _ ,
It i:, f.i c. t t h d t l h" Io t1 r r / rn,. tr '/J ,j JI., r. ~ 1 ,. :, • ·, ., ·., • •• ', "
onr> where• lhr• 1nd1mfo3 Ur L l ,
govr!rnmo11t want·, to <Jr,t,,rrr r
particular loca/1ty I vr th1·, 1 :i rr ·•·

well and 30 mun<>:, trJ fJ'' 1111,-u10 ✓ 1,-r:.. :::?r ,- :,r- ~:.·r: -:..· ,_ -.
In thr> randorn ·,arnplrr~, r-1r-r1 ,,:, 1:.:: -~: :;• !-'.,:,

tht300·,arrrpl1neur111·,,Jf1r,::v)r;.':;,,.-,,- ~•/::· - .. :: ---=--'"'... :..· -~ -·

of 30 unit-; and hr•ncr- 1nr• :,;;,rnr1f~, :,,<r ';r::,J.· _-= -~- -.-." -
alway'.; givr,:; U ', rar c.Jr.,rr <..orr·p/1~
HowcvE:r 1 thelott,,r1·re:tN ,f, 111 rrJti~ 1<:;:;,r:;;• ·.-,-- :-:"' •
i) If the slip:, are nut r'13'.fo r1f rJ,:~w.:::. :. zc:::: ( ·- · · '· .. • !,.

on H.e $lip·,.
ii) If same narn(~ r;r r 1, rnbr-r 1:. m 1·1:=r '✓ r ·r ·, ''- .. ~ ·

I missed out.
2, Briefly eYplairi '.ia rnplrrir; r,rror:.
Sampl1ngerrorr<::f<::r-:-t 0!h<::dff<:: 'f:'r:..<-: '·'=',,·'='=' ··<::::.--: '= ,_ .. --~-=-:: :;;·: · ·:,; ~---~
a character i~tic of thr, p<"Jpubr r:,r 1 :. l'::: !-'•s • · • :;;· • • - -- _ _ __
from the sample tciv<::n frorn tr'= r.,0:-✓- r/ ;:;'

Thu::; the d1fferen c<:: br-t1✓ c.:~r tr<:: ::c. 1 ,::: ,c: -'=_~·.:::·:;;- -::;·::;·:"cc:: :_::.
estimate i-; th€:' :.arnplrng r::rrr.1r
taking a largr::r :,amp/,,
For r:-xarnpl<:, ,upprJ:.r, h(,,1er,1 rA;, '.,T ,l,';f •:. ' • :- '::~ •
height will be C<.ikula1"d b/ s1drJ1q,;:, ,r '::.'= s•.,:<::·.;· -:..·: -:·::
60inches . lfwe,e l~ct lf 11r:::.<- lt:-:.'.;:.;r•:-,1:: '/·.,.s:·.:'=··: ·- ---··:- __ =;·::.. __ _
then average height of :.arnplr::, 1✓ :J": ~r:, ... 1:,-:.,,; • :.:;,; : c '= ~=;· _ _ . __ -=:·=-:: -- '= ::. - : _
error of the e,;t1rnot':; 11111 bi: ':/J/ir,1:: h ,':: rr ( ,: :::::. -:. --:;;·::; .:_

What 1,; Handorn 'J,m1pl1ng' E1p::, r <;r <;: {

R,.rndorn ,arnpl1nr~ I~ (;fl(,, ✓Ir <-(r- tr<; ',_ /,; -"

rancforn . For 1n~tci11c,r, the; f:/J/<:rr rr1::r· /hr·:.•-:.,:-=:·:: --··=:·-:. ··::.; :· -_- ·-::; • :=.: · :=.:··:
prrcr• ~ hr! hrJIJ',r•hr;ld b1JdB'::'t rA r;;;r• '- ✓ '✓::;, ·=;::-=::=:--=;· -- - - - --
--- :;:- _.. • •

5
r I I household has to be taken and studi ed. The nc1m0 <, of ,ill tlw lOO lir 111•,1•h(J ld•, ol I li,il ,tri•
·
written
by one
·
on pieces o f paper an d m1xe d we II an d 30 nt1n,c •<, l o lw 11111.'rVl<'WNI .ire · •,c •lr•rtr•d(JtJ''

In the random samp ling, every ind ividu al has an equa l clrnncP of lw1 r, r, ',f' lrc1r•d ,ind Iii"
ind1v1duals who are se lected a, e just like t he ones wh o d Ir not ~P l<'ct,·d . In t lw ;i liovr· r•xnmpl,·,
all th e 300 sampling units of t he popul ation go t an cqu,11 chance o f lwin ri lnr.l11d f'd rn 11,,,
samp le of 30 units and hence the sam pl e, such drawn, i~ a random ~nmp lr•. r hi •, i•, r; 1ll (t(J lot tr•ry
method. The sa me could be done usin g a rand om number ~le• <1 l~o. ~

4. Write briefly about the Census and NSSO.

I Census . Census of India is one of the national leve l r1ePncics for co llc •c Linn, prr,u•',', ,1r1 d
tabulation of the statistical data . It provides the most com plete and c.ont 1n uou~ clr•mo1~r,ir1l111
record of population. The Census is being regu larly conducted ev ery ten y(';ir•, ',i nr ,, 1 ~1\1 IIH·
first ce nsus a her Independence was conducted in 1951. The Cc 11 :,w, uffir i,il •, c.ullr•r t
information on various aspects of population such a!> the size, den sity, st>x riJl iCJ, lil r•r ,H / ,
ancJ rJ I l;t ly', ('d t [J
migration , rural - urban distribution, etc. Census data i!> interpreted
understand many economic and social issues 1n Ind ia .
NSSO : The NSSO was established by the Government of Indi a to conduct nntion w1cJr• ',urvr•y·,
on socio-economic issues. Th e NSSO does continuous surveys in succes sive round::. . /hr• d,11 11
co llected by NSSO are released through reports and its quarter ly journal Sarvekshana . rl'~'.,(J
provides periodic estima tes of literacy, school enrolment, uti lis ation of educational sr> rv1cr• ', ,
employment, unemployment etc. The NSSO also collects detai ls of industrial activiti r••, rind
retail price s for various goods, which are used by the government of India for plann inr,
purpose .

Vil Project oriented question (5 marks) -

1. Suppose you are a research student and you are asked to conduct a sample survey about th e::
'Mid-da y meals program' in schools. Prepare a good questionnaire to support your study.
Questionnaire related to Mid -day meal program

I
I
I
I
I 1.
SI.No
Your name
Questions Responses

I
2. Your age
3. Gender Male/ Female
4. School Name
5. Number of working people at your
family
6. Monthly family income
7. Resident of Urban/ Rural
8. Where do you eat lunch everyday a) Hou se b) Hotel c) School d) Other
9. Do you like eating at schools Ye s/ No
10. How often like the food served at a) Everyday b) Once in 2 days

I 11 .
your school
Do you get tasty food
c) Once in 4 days
Yes/ No
d) None .

12 . What made you to choose school a) Ta sty b) Good Quality

food
c) Free of cost d)None
13. Are you satisfied with the taste
Yes / No
14. Is th e supply of food helpful
Yes / No
15. Do you examine quality of food
Yes / No
16 Quality of rice used

I
a) Good b) Better
c)Excellent d)
I Low Quality