METHODOLOGY OF ECONOMICS
The actual methodology of economics issues the actual guidelines underlying financial argumentation.You’ll find two approaches to thinking about theoretical economics. There’re the actual deductive along with inductive approaches.
Deduction suggests reasons or inference on the general towards certain or on the wide-spread towards a particular person.This consists of the procedure involving thought through particular regulations or maybe guidelines, that are suspected to be accurate, on the investigation of information. Additionally, it is referred to as hypothetical method.
STEPS OF DEDUCTIVE METHOD:
- Choosing the particular problem.
- Creating assumptions
- Hypothesis should be presented.
- Hypothesis should be tested and verified via various statistical techniques.
- Decision making.
Induction “is the procedure of thought from a component towards complete, certain towards general or particular person towards on the wide-spread. Additionally, it is referred to as an empirical method.
STEPS OF INDUCTIVE METHOD:
- The particular problem should be selected and specified
- Collecting information
- Analyzing information via various statistical techniques
- Economic generalization