Online Test — Introduction to Statistics for Economics
15 Questions • 15 min • Chapter MCQ
15:00
Question 1 of 15
Economics is the study of how people use ____ to satisfy unlimited wants.
Unlimited resources
Scarce resources
Only money
Only land
Explanation: Economics studies the use of scarce resources.
Question 2 of 15
Which is NOT one of the three main economic activities?
Consumption
Production
Distribution
Pollution
Explanation: The three activities are consumption, production and distribution.
Question 3 of 15
Using goods and services to satisfy wants is called:
Production
Consumption
Distribution
Investment
Explanation: Consumption is the use of goods/services to satisfy wants.
Question 4 of 15
Economics as 'a study of mankind in the ordinary business of life' was defined by:
Alfred Marshall
Adam Smith
Karl Marx
Keynes
Explanation: This definition is by Alfred Marshall.
Question 5 of 15
Lionel Robbins' definition stresses ends and:
Unlimited means
Scarce means with alternative uses
Free goods
Money only
Explanation: Robbins defined economics in terms of ends and scarce means with alternative uses.
Question 6 of 15
In the plural sense, the word 'statistics' means:
Numerical data
The science of data
A government office
A single fact
Explanation: In the plural sense, statistics means numerical facts/data.
Question 7 of 15
In the singular sense, statistics means the:
Data itself
Science/method of handling data
Average
Total
Explanation: Singular sense = the science/method of collecting and analysing data.
Question 8 of 15
Which is a function of statistics?
Simplifying complex data
Creating wants
Producing goods
Hiding facts
Explanation: Statistics simplifies complex data (also comparison, forecasting, etc.).
Question 9 of 15
The first stage of a statistical investigation is:
Interpretation
Collection of data
Analysis
Presentation
Explanation: A statistical investigation begins with collection of data.
Question 10 of 15
The correct sequence of statistical stages is:
Collection → organisation → presentation → analysis → interpretation
Analysis → collection → presentation
Interpretation → collection → analysis
Presentation → analysis → collection
Explanation: The stages run collection → organisation → presentation → analysis → interpretation.
Question 11 of 15
Statistics studies facts that are:
Qualitative
Quantitative (measurable)
Imaginary
Emotional
Explanation: Statistics deals with quantitative, measurable facts.
Question 12 of 15
Statistical results are true:
For every single individual
Only on average
Never
Only for one person
Explanation: Statistical results hold on average, not for every individual case.
Question 13 of 15
Statistics deals with:
Aggregates (groups)
Single isolated figures
Only one person
Only opinions
Explanation: Statistics studies aggregates, not single individuals.
Question 14 of 15
The famous saying expressing distrust of statistics is:
Knowledge is power
Lies, damned lies, and statistics
Time is money
Honesty is the best policy
Explanation: The saying 'lies, damned lies, and statistics' expresses distrust of statistics.
Question 15 of 15
The distrust of statistics mainly arises because of its:
Misuse
Low cost
Simplicity
Honesty
Explanation: Distrust arises from misuse, not from the method itself.