# Basic tools for economic analysis: Tables explained with its characteristics and importance

### Basic Tools for Economic Analysis:

Basic tools for economic analysis refers various representations that organizes and interprets economic problems which seems somewhat difficult to comprehend. In simple terms, basic tools for economic analysis helps us to simplify complex economic statements through the use of carefully organized data represented in the form of tables, charts, graphs and so on.

Examples of basic tools utilized in economic analysis include the followings:

• Tables

• Charts

• Arithmetic Mean

• Geometric Mean

• Harmonic Mean

• Median

• Mode

• Arithmetic Average

• Standard Deviation

• Calculus

• Matrix

• Algebra

### Table as a Basic Economic Tool

A table shows a structural representation of data, information or variables in an orderly and systematic manner through its rows and columns.

The use of tables enables us to better understand the relationship between variables and their corresponding correlations. These data and variables can be quite complex when expressed in statements. For this reason, a table is typically used for simplifying and analyzing complex statements and data.

You can read on supply elasticity here.

As stated earlier, tables always have rows and columns. Row shows a vertical representation of data while column reflects the horizontal representation of data. The data in tables can be expressed in words or figures.

The instance below shows the interpretation of data through a scale of preference table.

 Needs / Wants Cost (Naira) Phone 50,000 Console Game 120,000 Laptop 80,000 Ipad 100,000 Smart watch 85,000 Ipod 40,000

The above table shows a simplified and organized arrangement of an individual's preference. If the contents of this table were to be written in statements, it may become somewhat complicated to the reader. However, the use of table becomes a tool of economic analysis since it gives us a single and simplified view of a somewhat complex statement.

From the scale of preference table, you will observe that the person puts his most important needs (or wants) at the top of the table. Further down the table are his less important needs.

Now, let's imagine that this individual has 170,000 Naira to spend. According to the above scale of preference (table), the following can be deduced;

### Characteristics of a Table

A table used for economic and data analysis should have the following characteristics:

1. It should have a title.

2. It should be simple and easy to understand.

3. A table must have rows and columns where data is entered.

4. A table should have headings on its rows. Headings may also be present on the columns.

5. The units of measurement for data should be clearly specified.

6. Data source on the table should be referenced.

7. When two or more tables are present, they should be numbered appropriately.

8. You can read on the characteristics of wholesales here.

### Importance of Tables

The use of tables have proven to be crucial in various fields of life. For instance, we have timetables for academics, football tables for match groupings, accounting tables, economic tables and so on. Below are the importance of using tables:

1. It gives a simplified and summarized version of data. In this regard, information is presented in a simple view through tables.

2. Different varieties of data can be juxtaposed and compared through tables.

3. It presents data in an orderly and well arranged manner.

4. Complex data are more easily comprehended through tables.

5. Data are easily interpreted through tables.

6. Repetition of information (data) is avoided through the use of tables.

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