Explain why the knowledge of statistics is indispensable for modern economic analysis ?
i) Relationship between sociology and economics: Sociology and Economics as social sciences have close relations. Relationship between the two is so close that one is often treated as the branch of the other, because society is greatly influenced by economic factors, and economic processes are largely determined by the environment of the society.
Economics
deals with the economic activities of man. It deals with production,
consumption and distribution of wealth. The economic factors play a vital role
in the very aspect of our social life. Total development of individual depends
very much on economic factors. Without economic conditions, the study of
society is quite impossible. All the social problems are directly connected
with the economic conditions of the people. That is why Marshall defines
Economics as "on one side the study of wealth and on the other and more
important side a part of the study of man."
In the same
way Economics is influenced by Sociology. Without the social background the study
of Economics is quite impossible.
ii)
Relationship between statistics and economics: Statistics and Economics have
close relations. Relationship between the two is so close that one is often
treated as the branch of the other, because statistics is greatly influenced by
data and information. Economics would be dependent on those data.
Economics
deals with the economic activities of man. It deals with production,
consumption and distribution of wealth, where production is directly related to
statistics. Without economic conditions, the study of statistics is quite
impossible.
iii)
Relationship between political science and economics: Political science and
economics are social sciences. Political science is the study of politics in
theory and practice, while economics is the study of how resources are
produced, allocated, and distributed. As well as dealing with subjects that
often relate to one another in everyday life, the two are commonly seen as
sister subjects in academic terms.
A variety of
topics related to politics are addressed by political science. This includes
differing political philosophies about how society should operate. It also
includes the way political systems work to produce laws and government.
Economics
deals with two main areas. Microeconomics is the study of how individual
consumers and businesses make production, purchasing, investment, and saving
choices. Macroeconomics looks at how an entire economy works and the way
policies can affect the combined effects of microeconomic decisions. It can be
argued that economics is a social science rather than a pure science, because
it is based around resolving an irresolvable dilemma: how to meet people's
unlimited wants with limited resources.