Classwork Series and Exercises {Economics – SS1}: Basic Tools for Economic Analysis

SS 1 Economics First Term Week 2

Topi – Basic Tools for Economic Analysis

Content 

Introduction

Tables

Characteristics and Importance of a Table

Introduction

The basic tools in economics are used for the interpretation and analyses of some problems which are often presented in statement which seems difficult to understand. The use of these basic tools makes it easier. Some of these basic tools are: Tables, Graphs, Charts, Mode, Mean, Median, standard deviation etc.

Table

A table is a systematic and orderly arrangement of information, facts or data using rows and column for presentation. This makes it easier for better understanding. It is the most commonly used one for analyzing information.

Characteristics of a Table

The following are the Attributes of a Table

1. A table must be simple
2. A table must be easy to understand
3. A table must be numbered if they are many
4. It must have a title
5. The source of information must should be stated if known
6. The purpose of creating a table must be known
7. A table must have a title or heading
8. The sub headings for rows and column must be stated

Interpretation of the Table

From the table it can be seen that the selected commodity are with different gross output, it explains that for different commodity there is different gross output made for them.

Importance of Tables.

Tables are important in the following ways:

1. A table helps data to be well arranged
2. It helps to summarized the data presented
3. A table helps to understand data
4. It makes decision faster and easier
5. It makes information easy to interpret
6. A table helps to bring out important features in a the data
7. A table eases comparison between different classes of data

Test and Exercise

1. All the following are part of Economic tools except (a) mean (b) table (c) median (d) centers. ans (d)
2. The basic tools in Economics are majorly used for————– (a) mis-interpretation of problems (b) interpretation and analysis of economics problems (c) decoration of economic work (d) complicate data. ans (b)
3. The characteristics of tables are (a) must be simple (b) must be complex (c) must be numbered if they are many (c) must have a title (d) must be easy to understand. ans (b)
4. Tables are important because (a) it helps to summarize data (b) it makes data easy to understand (c) it makes data difficult to understand (d) it helps to summarize data. ans (c)
5. A table is made up of (a) row and column (b) length and breadth (c) up and down (d) none of the above. ans (a)