1.

State the importance of diagrams and graphs in economics.

Answer»

importance of diagrams and graphs in economics:

  1. Economics looks difficult and confusing to learners. Diagrams make economics easy and graphs remove confusion by bringing clarity in data representation.
  2. Trends of certain economic parameters over various years can be observed through a single diagram or graph.
  3. Graphs and diagrams help to easily understand the changes occurring in various sectors of the economy.
  4. One can easily compare the distribution of economic parameters between groups/classes, regions, sectors as well as time periods.
  5. When many aspects of economics which are found apparently difficult are presented through a diagram/graph, the time and effort of the presenter in explaining and of the reader fn understanding these aspects is saved.
  6. Certain difficult principles of economics are easy to understand with the help of diagrams and graphs. For example, the concepts of expansion and contraction of demand and supply, price elasticity of demand and supply, etc. are made easier by way of pictures. Similarly, the trends of macroeconomic parameters can be clarified by way of time-series graphs.


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