Question

1.

(a)Discuss the importance of accurate data collection for economic analysis.

(b)dentify and discuss the types of data required for economic analysis.

(c)Explain, how you will forecast supply of natural resources for design purpose.

Answer 1

ans 1) For economic analysis it is very much important that data collected for the same is absolutely accurate. Accuracy of data ensures the integrity and reliability of the analysis. Analysis based on inaccurate data gives misleading results. there are many decisions which are based on such analysis failure of data accuracy may lead to false decision making and have negative impact on the whole economy. it is the baseline on which many decisions and actions are based. Inaccuracy of data leads to wastage of time and resources leading to invalid results.

ans 2) types of data required for economic analysis

a) Time series data of a variable have a set of observations on values at different points of time. They are usually collected at fixed intervals, such as daily, weekly, monthly, annually, quarterly, etc.

2) Cross-section data are collected at the same point of time for several individuals. Examples are opinion polls, income distribution, data on GNP per capita in all European countries, etc.

3) Pooled data is a mixture of time series data and cross-section data. One example is GNP per capita of all European countries over ten years.

4) Panel, longitudinal or micropanel data is a type that is pooled data of nature. The difference is that we measure over the same cross-sectional unit for individuals, households, firms, etc.

c) While forrcasting supply of natural resources following factors must be considered\

1)The role of technology, preferences, policies and prices is underestimated when forecasting supply for natural resources

. 2). Contrary to popular perceptions, population growth is and will be far less significant in spurring resource demand than economic growth and development

3. Physical, economic, political and social interconnections between resources are growing, and will increasingly influence resource availability, in both positive and negative ways.

4. Defining natural resource availability often fails to consider how they are distributed, both between countries and between individuals within countries.

5. Environmental factors create local and global risks to resource availability, while resource production and use are the primary factors in environmental risks.

There are four perceptions or assumption related to natural resorce supply

? Threats of material exhaustion

? Concern about rising costs

? Long-term abundance

? Social injustice focused on distributional challenges

based on this paradigms the forecasting will be done.  This paradigm shows that while the world has sufficient global stocks of natural resources to meet most of society’s demands, the flow of resource distribution is increasingly threatened by highly uncertain “above ground” factors