SS1 First Term Economics Lesson Note – Basic Tools for Economic Analysis

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WEEK 3

BASIC TOOLS FOR ECONOMIC ANALYSIS

Content

• Graphs, Charts and Tables
• Measures of Central Tendency

Sub-topic One:  Graphs, Charts and Tables

Introduction

Economic relationship can be expressed in two major ways. These are:

1. Verbal statement: This is the expression of economic relationship in statement. For example, one could say “the number of bag of rice demanded depends on its price”
2. Mathematical expressions

Mathematical expressions are used to explain verbal statements in economics in order to make concise and accurate predictions. It can be explained below:

(a) Symbolical Statement: This is the use of algebraic expressions to express functional relationships. For examples, the quantity of a commodity depends on its price. This can be expressed using functional relationships in mathematics:

Q_d = f(P_m)

Where  is quantity demanded of commodity m

P_m is price of commodity m

(b)Statistical Tools (Geometric expression and Arithmetical expression)

These are tools like tables, graphs and charts which are used to illustrate a body of data in economics. We shall treat these entire one after the other.

1. Geometric expression: This involves the use of charts and graphs.
2. Arithmetic expression: This involves the use of table etc.

Tables

A table is an orderly arrangement of data in rows and column.

Advantages of Tables

• It presents data in an orderly manner.

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