Question
Explain the use of statistics in the field of economics.
Solution
Statistics and economics : A number of economists have given a practical shape to statistical tools for economic research. Famous economists (likeAugustin, Cournot, Vilfredo Pareto, Leon Walras, Alfred, Marshall, Edgeiuorth, A.L. Bowley etc.) evolved number of economic laws by quantitative and mathematical studies. Economic laws are developed with the help of statistical tools and the importance of statistics is growing day-by-day in economic analysis. An economist examines his studies by statistical methods which are the tool and appliances of his laboratory, in the same way as the doctor used stethoscope for diagnosis of a patient. Let us understand the importance of statistics keeping in view the various parts of economics.
(a) Statistics and the study of consumption.
(b) Statistics and the study of production.
(c) Statistics and the study of exchange.
(d) Statistics and the study of distribution.
