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CodeVID-M11-WS
Introduction to Statistics for Economics — Practice Worksheet
Chapter: Introduction to Statistics for Economics
Topic: Introduction to Statistics for Economics
Maximum Marks: 35
Time: 30 minutes
Name: ____________________ Roll No.: __________ Date: ____________

General Instructions

  • All questions are compulsory.
  • Choose the correct option (A, B, C or D) for each question.
  • The answer key is at the end — try the paper first!
Section A — Multiple Choice (1 mark each) 15 × 1 = 15 marks
1.
Economics is the study of how people use ____ to satisfy unlimited wants.
  • A.Unlimited resources
  • B.Scarce resources
  • C.Only money
  • D.Only land
2.
Which is NOT one of the three main economic activities?
  • A.Consumption
  • B.Production
  • C.Distribution
  • D.Pollution
3.
Using goods and services to satisfy wants is called:
  • A.Production
  • B.Consumption
  • C.Distribution
  • D.Investment
4.
Economics as 'a study of mankind in the ordinary business of life' was defined by:
  • A.Alfred Marshall
  • B.Adam Smith
  • C.Karl Marx
  • D.Keynes
5.
Lionel Robbins' definition stresses ends and:
  • A.Unlimited means
  • B.Scarce means with alternative uses
  • C.Free goods
  • D.Money only
6.
In the plural sense, the word 'statistics' means:
  • A.Numerical data
  • B.The science of data
  • C.A government office
  • D.A single fact
7.
In the singular sense, statistics means the:
  • A.Data itself
  • B.Science/method of handling data
  • C.Average
  • D.Total
8.
Which is a function of statistics?
  • A.Simplifying complex data
  • B.Creating wants
  • C.Producing goods
  • D.Hiding facts
9.
The first stage of a statistical investigation is:
  • A.Interpretation
  • B.Collection of data
  • C.Analysis
  • D.Presentation
10.
The correct sequence of statistical stages is:
  • A.Collection → organisation → presentation → analysis → interpretation
  • B.Analysis → collection → presentation
  • C.Interpretation → collection → analysis
  • D.Presentation → analysis → collection
11.
Statistics studies facts that are:
  • A.Qualitative
  • B.Quantitative (measurable)
  • C.Imaginary
  • D.Emotional
12.
Statistical results are true:
  • A.For every single individual
  • B.Only on average
  • C.Never
  • D.Only for one person
13.
Statistics deals with:
  • A.Aggregates (groups)
  • B.Single isolated figures
  • C.Only one person
  • D.Only opinions
14.
The famous saying expressing distrust of statistics is:
  • A.Knowledge is power
  • B.Lies, damned lies, and statistics
  • C.Time is money
  • D.Honesty is the best policy
15.
The distrust of statistics mainly arises because of its:
  • A.Misuse
  • B.Low cost
  • C.Simplicity
  • D.Honesty
Section B — Challenge / Olympiad (2 marks each) 10 × 2 = 20 marks
16.
A government wants to reduce unemployment. To know how big the problem is, it first needs:
  • A.Statistical data on how many people are unemployed
  • B.A new factory
  • C.More wants
  • D.A slogan
17.
Saying 'prices rose by 8% this year' rather than 'prices rose a lot' shows that statistics:
  • A.Presents facts in a definite numerical form
  • B.Hides facts
  • C.Studies qualities
  • D.Is always wrong
18.
'The average household has 4.2 members, yet no household has exactly 4.2 members.' This illustrates that statistical results:
  • A.Are true only on average, not for each case
  • B.Are always false
  • C.Apply to one family
  • D.Cannot be calculated
19.
A leader shows a graph with a stretched scale to make a tiny rise in income look huge. This is an example of:
  • A.Misuse of statistics
  • B.A limitation of economics
  • C.Correct interpretation
  • D.Production
20.
Statistics cannot directly measure a person's honesty because honesty is:
  • A.A qualitative trait, not numerical
  • B.Too expensive
  • C.Always changing
  • D.A type of data
21.
An economist studying whether higher price lowers demand is using statistics to:
  • A.Study the relationship between two things
  • B.Create wants
  • C.Produce goods
  • D.Hide data
22.
Because figures alone can mislead, statistics should be used and interpreted by:
  • A.People who understand the methods
  • B.Anyone, without care
  • C.No one
  • D.Only computers
23.
Distribution, as an economic activity, deals with how:
  • A.Income from production is shared (rent, wages, interest, profit)
  • B.Goods are eaten
  • C.Factories are built
  • D.Wants are created
24.
Reducing a long list of family incomes to a single average is an example of statistics:
  • A.Simplifying complex data
  • B.Producing goods
  • C.Creating scarcity
  • D.Studying honesty
25.
The best attitude toward statistics is to treat it as a:
  • A.Tool that is honest when used correctly
  • B.Source of lies
  • C.Useless subject
  • D.Way to hide facts

Answer Key

Section A — Multiple Choice (1 mark each)
  1. (B) Scarce resources
  2. (D) Pollution
  3. (B) Consumption
  4. (A) Alfred Marshall
  5. (B) Scarce means with alternative uses
  6. (A) Numerical data
  7. (B) Science/method of handling data
  8. (A) Simplifying complex data
  9. (B) Collection of data
  10. (A) Collection → organisation → presentation → analysis → interpretation
  11. (B) Quantitative (measurable)
  12. (B) Only on average
  13. (A) Aggregates (groups)
  14. (B) Lies, damned lies, and statistics
  15. (A) Misuse
Section B — Challenge / Olympiad (2 marks each)
  1. (A) Statistical data on how many people are unemployed
  2. (A) Presents facts in a definite numerical form
  3. (A) Are true only on average, not for each case
  4. (A) Misuse of statistics
  5. (A) A qualitative trait, not numerical
  6. (A) Study the relationship between two things
  7. (A) People who understand the methods
  8. (A) Income from production is shared (rent, wages, interest, profit)
  9. (A) Simplifying complex data
  10. (A) Tool that is honest when used correctly
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