Importance of diagrams and graphs in context of presenting information:

• Economic provides an explanation and analysis of various economic events occurring in the real world.
• For studying these events a lot of data is collected. It is then analysed and represented in simpler forms.
• Pictorial representation is a very effective and easy way to represent data analysis.
• Diagrams and graphs are two ways of representing the information pictorially.
• A layman may call diagram and graph as one but Statistics classifies diagrams and graphs as different types of pictures. Both of these are used for distinct purpose. Similarly, even in economics these two are used to fulfill different purposes.
• When we talk about general public or say layman we need to show them such representations which they can understand. Diagrams fulfill this purpose.
• Data understanding and analysis is out of reach and interest of general public. When such information is provided in an easy manner through diagrams then people tend to take interest in them.

Although one needs to make use of scale and measurement to draw a diagram, one does not need to have a thorough knowledge of statistics to draw it. Since drawing the diagram is easy it obviously means that it is easy to understand as well for layman.

• On the other hand graphs are not meant for general public. A graph is drawn for statistical information which is not self-explanatory.
• Layman can neither create not represent graphs without thorough knowledge of statistics. Hence, graphs are mostly used by researchers and in higher education.
• Moreover, graphs are not used or published for general public. They are created by researchers for their data analysis and understanding purposes only.