Cambridge International as and a level Economics Ebook

2
Continuous data:
 
Such values can usually be measured in 
a precise way and are not confined to whole numbers, e.g., 
income, inflation or economic growth. For example, the 
inflation rate can be 2.6%.
So, when you are confronted with economic data for the 
fi rst time, ask yourself:
■
Is the data shown a time-series or cross-sectional data?
■
Are the values of the data discrete or continuous?
Below are three further matters to consider; these are 
also important when you come across a data set for the 
fi rst time, particularly in a time-constrained examination 
situation.
1
Title and source of data:
 
The title should give you a clear 
guide as to what the data is about. A lot of economic data 
are from governmental or other off icial sources such as the 
World Bank. This should mean that it is accurate, although 
this may not necessarily be so. If the data has come from 
other sources, be wary about what it shows – it may have 
been produced in such a way as to promote a particular 
viewpoint.
2
Estimates:
 
Some data will be an estimate that has been 
made by the organisation responsible for collecting the 
data. This is oft en necessary as there is invariably a time lag 
in producing more accurate information. In other instances 
if no data has been collected or it is diff icult to collect data 
then the organisation will produce an estimate.
3
Forecast:
 
Economists rely heavily on forecasts in order to 
take policy decisions (see page 
8
). Therefore, key economic 
variables are oft en forecasted in order to assist this process. 
Such data is likely to be reasonably accurate but should 
never be taken to be precise.