By Aman Kayal, Academic Content Writer for Economics

In the previous section you were told about certain special studies that concern the basic problems facing a country. These studies required that we know more about economic facts. Such economic facts are also known as economic data. The purpose of collecting data about these economic problems is to understand and explain these problems in terms of the various causes behind them. In other words, we try to analyse them. For example, when we analyse the hardships of poverty, we try to explain it in terms of the various factors such as unemployment, low productivity of people, backward technology, etc. But, what purpose does the analysis of poverty serve unless we are able to find ways to mitigate it. We may, therefore, also try to find those measures that help solve an economic problem. In Economics, such measures are known as policies. So, do you realise, then, that no analysis of an economic problem would be possible without data on various factors underlying an economic problem? And, that, in such a situation, no policies can be formulated to solve it. If yes, then you have, to a large extent, understood the basic relationship between Economics and Statistics

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