Methods of Study in Economics Essay

This mode is overly called as abstract, analytical and priority rule. chthonic this regularity, laws be deduced in a uniform opusner. On the basis of original primitive assumptions or accepted axioms ( prescripts) or truths which carry been established and handed down from propagation to generation, the required conclusions argon found give away. This method is called as abstract since it is based on abstract reasoning and not actual facts. However, actual function may protest from what deductive system of logic suggests.For example, it is assumed that the man is rational and on the basis of this it is deduced that he will buy cheap and denounce dear ones. However, in actual situation this may not happen because of the absence seizure of proper knowledge and market conditions. The tenet steps in the process of lineage economic generalizations through deductive logic are1.perception of the problem2.defining the technical harm and making the appropriate assumptions 3.deducing possibility and4.testing of hypothesis deduced.Through the use of deductive method, many a(prenominal) theories and generalizations have been established in economics. It is called as inverse kindred betwixt the terms and quantity demanded, the direct relationship between the price and quantity supplied etc. However, this method also suffers from certain handicaps such as (i) assumptions generally turn out to be un straight or partially true (ii) valid conclusions cannot be drawn in the absence of proper knowledge of the altogether situation and (iii) it is dangerous to claim ecumenic validity for the economic generalizations so deduced.inducive methodAccording to this method, conclusions are drawn on the basis of collection and outline of the facts which are relevant to the inquiry. The logic in this case proceeds from the particular to the general. The generalizations are based on utterance of individualistic examples.The principle steps in this method arePe rception of the problemCollection, sort and analysis of data by employ appropriate statistical techniques Finding out the reasons for the relationship established through statistical analysis and to set rules for the verification of the principles.many researches in macroeconomics have been obtained through inductive method such as principle of acceleration describing the factors which determine investment in an economy, the nature of consumption function describing the relationship between income and consumption etc. inductive method is increasingly be utilise on account of the under mentioned facts statistical induction leading to precise, exact and mensural conclusions It underlines the importance of relativity of economic laws and It shows that generalizations are valid only under certain conditions. However, this method suffers fromRisk of hurried conclusions having being drawn from an insufficient number of facts Difficulties elusive in the collection of factsThe fact t hat observation and experimentation have very limit application in a perception that deals with human activities.Referencehttp//classof1.com/homework-help/economics-homework-help