Name: Introduction to Statistical Economics - 1
Uploaded: 2019-07-19
Duration: 5 min 42 s
Description: Learn the basics of statistical economics! This video covers fundamental concepts, key terms, and simple examples to build your understanding from the ground up.

Question

'The Government and policy makers use statistical data to formulate suitable policies of economic development'. Illustrate with two examples.

Accepted Answer

The policy-making domain is only possible when there is proper analysis. The statistical data helps in analysing and evaluating the outcomes of the past policies and assists in taking corrective measures and formulating new policies.
The two examples are:

As for the global oil prices, it might be necessary to decide how much oil India should import. The decision of importing would depend on the expected domestic production of oil and the expected demand. Without the use of Statistics, it cannot be determined what the expected domestic production of oil and the likely demand for oil would be.

In the formulation of the monetary policy, the previous data of inflation and economic growth are considered to estimate the money supply required in the next period.

'The Government and policy makers use statistical data to formulate suitable policies of economic development'. Illustrate with two examples.

Important Questions on Introduction

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