Tools of Economics analysis

CONTENT

1. Tables or schedules
2. Graphs
3. Bar  chart (simple, component and multiple)
4. Pie Chart
5. Merits and demerits

You must watch the video below before you continue:

TABLES OR SCHEDULES

A table is a systematic and orderly arrangement of information, facts or data, using rows and columns for presentation which make it easier for better understanding of  the relationship between variables. It serves as the most commonly used tool in Economics for economic analysis.

FEATURES OF A TABLE

1. It must give an orderly arrangement of data.
2. It must have a title or heading.
3. It must be numbered if many.
4. It must be very simple and easy to understand.
5. The units of measurement used in the table must be stated.

USES OR IMPORTANCE OF A TABLE

1. It reveals information at a glance.
2. It avoids repetition.
3. It makes data easy to understand.
4. It allows for easy interpretation of data.
5. It eases comparison between classes of data.

EXAMPLES OF A TABLE

The table below gives the performance of four students in an entrance examination.

Students	Eng	Maths	Econs	Total
A	60	80	50	190
B	80	40	70	190
C	60	60	80	200
D	40	50	60	150
Total	240	230	260	730

EVALUATION

1. Define Table.
2. State 3 importance of a table.

USE OF A GRAPH

A graph is a diagram showing a functional relationship between two variables. Information presented on table can be translated into a graph for better understanding.  Many types of graphs are used for economic analysis depending on the nature of the data and purpose for which they are intended

FEATURES OF A GRAPH

1. It must be titled.
2. It must possess appropriate scales.
3. The y and x axis must carry different variables.
4. It must show the source of data presented.
5. The y-axis must be on the vertical side and x-axis on the horizontal side.
6. It must be well labeled for better understanding.

IMPORTANCE OF A GRAPH

1. It shows relationship between two variables.
2. It makes quantitative information illustrated in tabular form clearer and quicker impression.
3. It helps to interpret values of variables.
4. The values or quantities in the table are better understood and appreciated in graph.
5. It provides basis for comparing variables provided in the table.

EVALUATION

1. What is a graph?
2. State five features of a graph

USE OF A CHART

A Chart is a device being used to provide us with the interpretation or presentation of data in the form of diagram or picture. In economics, many types of chart are used for economic analysis among which are bar charts and pie chart.

BAR CHART

A bar chart is a way of representing tabulated data with evenly spaced bars with equal gap. Bar charts can be of three types:-

1. SIMPLE BAR CHARTS: Used for data with one variable.

• COMPONENT BAR CHARTS: Used for data with two variables.

• MULTIPLE BAR CHARTS: Used for data with more than two.

EVALUATION

1. Define the meaning of a chart

2.    Highlight three types of chart

PIE CHARTS

This is a circle divided into sections expressed in degrees with each section proportionate to the frequency or attribute. The circle represents the total data and with the use of a compass and protractor it is drawn

LINEAR GRAPH

A linear graph is used in comparing between two variables proving a straight-line graph.

Assignment

1.         (a).       Define i. graph ii. Chart  iii. table

            (b).       List four importance of a table?

2.         (a).       The daily sales of a department store for one week are as follows:

Days	Mon	Tue	Wed	Thur	Fri	Sat
Sales(N)	1970	1000	3500	2250	1000	2500

Present the above data in a bar charts (use a graph)

(b).       Mrs. Lumi purchased food stuffs as follows:

Meat                             N60

Green rice                     N40

                    Beans                     N50

Yam                             N70

     Plantain.    N70

Present the above information on pie chart