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What is deductive and indeductive method according to micro economics?
Wiki User
∙ 14y ago
inductive is when you observe that something happen
Wiki User
∙ 12y ago
Wiki User
∙ 11y agodeductive method of economic analysis
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What is deductive method in economics?
The deductive method is a very important method for testing theories or hypotheses. It is sometimes said to be "the scientific method". Its application can be divided into four stages :Identify the hypothesis to be tested.Generate predications from the hypothesis.Use experiments to check whether predictions are correct.If the predictions are correct, then the hypothesis is confirmed. If not, then the hypothesis is disconfirmed.The Deductive Research Method works from the more general to the more specific. [Theory > Hypothesis > Observation > Confirmation]
Explain the study of economics as a science?
Economics uses the scientific method in explaining human behavior.
True or False Does Economics use the scientific method?
true
Is normative economics concerned with the use of the scientific method to establish well-tested explanations for economic behavior?
Yes, it is. Economics as a field is very concerned with using the scientific method to explain and predict behavior.
What is the difference between inductive and deductive methods of economics?
Methods of Economic Analysis:An economic theory derives laws or generalizations through two methods:(1) Deductive Method and (2) Inductive Method.These two ways of deriving economic generalizations are now explained in brief:(1) Deductive Method of Economic Analysis:The deductive method is also named as analytical, abstract or prior method. The deductive method consists in deriving conclusions from general truths, takes few general principles and applies them draw conclusions.For instance, if we accept the general proposition that man is entirely motivated by self-interest. In applying the deductive method of economic analysis, we proceed from general to particular.The classical and neo-classical school of economists notably, Ricardo, Senior, Cairnes, J.S. Mill, Malthus, Marshall, Pigou, applied the deductive method in their economic investigations.Steps of Deductive Method:The main steps involved in deductive logic are as under:(i) Perception of the problem to be inquired into: In the process of deriving economic generalizations, the analyst must have a clear and precise idea of the problem to be inquired into.(ii) Defining of terms: The next step in this direction is to define clearly the technical terms used analysis. Further, assumptions made for a theory should also be precise.(iii) Deducing hypothesis from the assumptions: The third step in deriving generalizations is deducing hypothesis from the assumptions taken.(iv) Testing of hypothesis: Before establishing laws or generalizations, hypothesis should be verified through direct observations of events in the rear world and through statistical methods. (Their inverse relationship between price and quantity demanded of a good is a well established generalization).(2) Inductive Method of Economic Analysis:Inductive method which also called empirical method was adopted by the "Historical School of Economists". It involves the process of reasoning from particular facts to general principle.This method derives economic generalizations on the basis of (i) Experimentation (ii) Observations and (iii) Statistical methods.In this method, data is collected about a certain economic phenomenon. These are systematically arranged and the general conclusions are drawn from them.For example, we observe 200 persons in the market. We find that nearly 195 persons buy from the cheapest shops, Out of the 5 which remains, 4 persons buy local products even at higher rate just to patronize their own products, while the fifth is a fool. From this observation, we can easily draw conclusions that people like to buy from a cheaper shop unless they are guided by patriotism or they are devoid of commonsense.Steps of Inductive Method:The main steps involved in the application of inductive method are:(i) Observation.(ii) Formation of hypothesis.(iii) Generalization.(iv) Verification.
What are the advantages and disadvantages of deductive method?
the advantages of deductive method
What is deductive method in economics?
The deductive method is a very important method for testing theories or hypotheses. It is sometimes said to be "the scientific method". Its application can be divided into four stages :Identify the hypothesis to be tested.Generate predications from the hypothesis.Use experiments to check whether predictions are correct.If the predictions are correct, then the hypothesis is confirmed. If not, then the hypothesis is disconfirmed.The Deductive Research Method works from the more general to the more specific. [Theory > Hypothesis > Observation > Confirmation]
What is the 3 method of economic?
deductive method inductive method
What is the purpose of the deductive approach to the scientific method?
The aim of the deductive scientific method is to try your hardest to prove the idea wrong.
What means rationalism?
Rationalism means a method or a theory "in which the criterion of the truth is not sensory but intellectual and deductive" (Bourke 263) (according to Wikipedia).
Seven steps of the hypothetico-deductive method?
THE HYPOTHETICO-DEDUCTIVE METHOD The seven steps involved in the hypothetico-deductive method of researchare as follows.1.Observation2.Preliminary information gathering3.Theory formulation4.Hypothesizing5.Further scientific data collection6.Data analysis7.Deduction
Who formulated the deductive method of inquiry?
Rene Descartes
Who was originated Deductive-Inductive method?
Aristotle Or Plato
What standardized deductive arguments which can be tested for validity by the Venn diagram method or by the rules method?
Categorical syllogisms
What is difference between inductive theory and deductive theory?
Deductive takes the facts and finds an answer. Detectives usually use this method. Inductive takes the answer and finds the question.
Define hypothetico-deductive reasoning?
It is the proposed description of scientific method. This method is used in trying to disprove the hypothesis of the researcher.
What word is used to describe knowledge about the universe and the method of obtaing that knowledge?
hypothetico-deductive method maybe 2 words
