Chapter MCQ Test 2 — Introduction to Statistics for Economics
10 Questions • 12 min • Chapter MCQ
12:00
Question 1 of 10
A government wants to reduce unemployment. To know how big the problem is, it first needs:
Statistical data on how many people are unemployed
A new factory
More wants
A slogan
Explanation: Defining and tackling a problem first needs data measuring its size — that is the role of statistics.
Question 2 of 10
Saying 'prices rose by 8% this year' rather than 'prices rose a lot' shows that statistics:
Presents facts in a definite numerical form
Hides facts
Studies qualities
Is always wrong
Explanation: Exact figures replace vague words — statistics presents facts precisely in numbers.
Question 3 of 10
'The average household has 4.2 members, yet no household has exactly 4.2 members.' This illustrates that statistical results:
Are true only on average, not for each case
Are always false
Apply to one family
Cannot be calculated
Explanation: Averages describe the group as a whole, not any single individual case.
Question 4 of 10
A leader shows a graph with a stretched scale to make a tiny rise in income look huge. This is an example of:
Misuse of statistics
A limitation of economics
Correct interpretation
Production
Explanation: Distorting a graph's scale to exaggerate is a classic misuse of statistics.
Question 5 of 10
Statistics cannot directly measure a person's honesty because honesty is:
A qualitative trait, not numerical
Too expensive
Always changing
A type of data
Explanation: Statistics handles quantitative (measurable) facts; honesty is qualitative.
Question 6 of 10
An economist studying whether higher price lowers demand is using statistics to:
Study the relationship between two things
Create wants
Produce goods
Hide data
Explanation: Examining how one variable relates to another (price and demand) is a key function of statistics.
Question 7 of 10
Because figures alone can mislead, statistics should be used and interpreted by:
People who understand the methods
Anyone, without care
No one
Only computers
Explanation: Knowledgeable handling and honest interpretation prevent misuse.
Question 8 of 10
Distribution, as an economic activity, deals with how:
Income from production is shared (rent, wages, interest, profit)
Goods are eaten
Factories are built
Wants are created
Explanation: Distribution concerns the sharing of national income among the factors of production.
Question 9 of 10
Reducing a long list of family incomes to a single average is an example of statistics:
Simplifying complex data
Producing goods
Creating scarcity
Studying honesty
Explanation: Condensing many figures into one average is the simplifying function of statistics.
Question 10 of 10
The best attitude toward statistics is to treat it as a:
Tool that is honest when used correctly
Source of lies
Useless subject
Way to hide facts
Explanation: Statistics is a neutral tool — reliable and honest when used and interpreted properly.