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Eco. 101—-21-8-2021 (Online Discussion Quiz 2–Methods of Economic Analysis)

Tony Orji by Tony Orji
August 22, 2021
in Assignment And Quiz
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What are the basic methods of analysis used by Economists? Briefly and convincingly discuss each of them.

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Comments 581

  1. Avatar Ikeh Nnamdi Samuel says:
    4 years ago

    Name: Ikeh Nnamdi Samuel
    Department: Economics/psychology
    Reg No: 2020/246207
    Faculty: Social sciences
    Question: Methods of Economic Analysis
    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    * Observation of a task/ issue
    * Making the hypothesis
    * Testing the hypothesis using more observations, etc.

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    *Observation
    *Formulation of a hypothesis
    *Generalizing principles
    “Verifying against actual facts.

    Reply
  2. Avatar Onyelonu Chidire Victory says:
    4 years ago

    Name: Onyelonu Chidire Victory
    Reg no: 2020/246205
    Department: Combined social sciences(Economics and psychology)
    Faculty: Social sciences
    Email: victorychidi223@gmail.com

    Questions: what are the basic method of analysis used by Economists?
    The word ‘economics’ comes from two Greek words, ‘eco’ meaning home and ‘nomos’ meaning accounts. The subject has developed from being about how to keep the family accounts into the wide-ranging subject of today.
    Economics has grown in scope, very slowly up to the 19th century, but at an accelerating rate ever since. Today it has many of the features of a language. You may already have studied economics and there is the danger that the language that you learnt has changed, so be careful! 
    Economics is the study of scarcity and its implications for the use of resources, production of goods and services, growth of production and welfare over time, and a great variety of other complex issues of vital concern to society. And there are methods of analysis Economics which are:
    (1). Inductive reasoning: This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method done through observation, formulating hypothesis, generalizing principles and verifying against actual fact. One of its advantages is that it is more realistic and reliable. And one of its disadvantages is that it’s a time consuming process and expensive.

    (2). Deductive reasoning: This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning through: observation, of a task, making the hypothesis, testing the hypothesis using more observations, etc.This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws. One of the advantages of these method is that for economists as it focuses upon economic reasoning which is of paramount importance. and one of its disadvantages is that it’s logical fallacy.
    This implies that the two methods or reasoning differs methodologically.

    Reply
  3. Avatar Ukachukwu Chinelo Esther says:
    4 years ago

    Name: Ukachukwu Chinelo Esther
    Reg No: 2015/202410
    Department: Economics Education
    Faculty: Education
    QUESTIONS: METHODS OF ECONOMIC ANALYSIS
    Economics is the study of how people allocate scarce resources for production, distribution, and consumption, both individually and collectively. It focuses on the actions of human beings, based on assumptions that humans act with rational behavior whereby they seek the most optimal level of benefit or utility. Economics can generally be broken down into macroeconomics which concentrates on the behavior of the economy as a whole ie it it examines overall economies on a regional, national or international, and microeconomics which focuses on individual people and businesses ie the behavior of individual consumers and producers. However these two branches of economics use very different theories, models, and research methods, which sometimes appear to conflict with each other.
    Generalisations in economics have been derived in two ways:
    (1) Deductive Method; This consists of deriving conclusions from general facts, with general principles and applies conclusions. The steps involved in deductive method includes; perception of the problem, definition of terms, deducing hypothesis from assumptions, testing of hypothesis. It has its merits and demerits. The merits include; it is less time consuming and less expensive, it uses mathematical techniques in deducing theories, it helps in deriving economic theories, it is simple because it is analytical.
    It’s demerits include; it’s assumptions might be wrong, it is not applicable universally, it is also highly abstract.
    (2) Induc­tive Method: This involves data collection about certain economic phenomenon. It involves the process of reasoning from particular facts to general principles. The steps of inductive method include; observation, formation of hypothesis, generalization and verification. This method has its merits and demerits.
    It’s merits includes; it is based on facts ie, the method is realistic, if conclusions are drawn from insufficient data, the generalization obtained may be faulty, collection of data is not an easy task. Lastly, it is time consuming and expensive.
    This shows that both methods have their own faults and weaknesses and cannot be exclusively relied on.

    Reply
  4. Avatar OTSONU RAWLINGS says:
    4 years ago

    Name: RAWLINGS OTSONU
    Jamb Reg No. 29752699EF
    Department: Economics
    Faculty: Social Sciences
    Assignment Question: Meaning of Economics and Behavioural Economics

    Responses: The meaning of Economics, a derivative of the Greek word ‘economy’ has been succinctly defined by different scholars based on their own understanding of the subject. In line with the word “economy”. Economy is a Greek word’oikovouoc meaning One who manages a household”). It is a composite word derived from oikoc, (house) and veuw (“manage, distribute”) by the way of oikovouia, meaning household Management. And economy consist of Economic system in a certain region, comprising the production, distribution or trading and consumption of the limited goods and services in that region or country. Therefore, economy is the total sum of product and services transactions of value between two or more economic agent in a region, whether individual(s), organization or States.
    Economics as a term can be defined as follows:
    The classical economist, such as Adam Smith put Economics to be”the study of production, distribution and growth of wealth in society”. This definition of economics is based on the aspect of wealth and concrete economic activities that are not intangible. They emphasized basically on the physical aspect of human activities, leading to utilisation of physical resources in the society, especially in actual production, distribution and growth in a competitive economy.
    That is why of of the classical economists in the person of Adam Smith defined Economics as “an inquiry into the nature and causes of the wealth of Nations”. Another school of thought, known as the Marxist understand economics to be based on the aspect of labour influencing the development of the economy and its productivity level. Their understanding level of the subject (economics) encompasses only the aspect of labour population and their effects.
    The above points lay emphasis economics in micro aspect, not macro. For that reason, the social scientists postulated that economics studies the way in which societies solve the fundamental problems of reconciling unlimited desires of individuals with scarce resources, likely to be affected by numerous alternative uses. This is why I would like to adopt the definition of economics by the great economist, Professor Lord Robinson). He defined Economics as a science, which study human behaviour, as a relationship between the ends and scarce means, which have alternative. His definition is of economics is all encompassing and it covers all the Scopes and fields of economics, being macro micro.
    His definition of economics is generally recognized and used by young learners.

    Behavioural Economics:
    This according to a scholar Atma Jaya Rosdiana Sijabat of a Catholic University in Indonesia quoted that in the traditional economics approach, ‘an individual’s decision reflect that individual’s best interests and made rationally ‘. For that, she viewed that Behavioural Economics as a field of study in Economics that integrates economics and psychology in analysing human behaviour, which is important for explaining why individuals’ decisions and behaviour may not reflect their best interests”. According to findings, Behavioural Economics has advantage for its power to explain individual’s psychological State (State of the mind) in decision making process, in both individual, group of individuals and institutions.
    Some technical aspects of the behavioural economics are: pricing process and opportunity cost.
    According to the view of Brzezicka and Wisniewski in 2013, Behavioural Economics is an experimental science, as it is based on experiment that combine economic deduction and psychological induction, thereby creating a complementary means of explaining human decisions.
    Another scholar, known as Beenheim and Rangel in 2007 opined that behavioural economics combines the theoretical concepts with those of the state of mind, thereby allowing it to develop various models for explaining the difficult issues of warfare evaluation, which means that with the help of that, scholars would be able to use it in tackling technical problems involving both psychic and physical economic challenges because it offers theoritical and methodological means of understanding human behaviour (physical exhibition or response to stimulus or stimuli); by combining the principles of Behavioural science and micro-economics in line with the view of Kaplan et al in 2018.
    MC Mahon also used the same sense to explain behavioural economics in 2015 when he said that: “The fundamental assumption of economic resources distribution is that individuals are rational beings (rational homo oeconomus, economics humans) when making economic decisions.
    Also, Alm and Bordeaux in 2013 supported that stand, he reported that that was why individuals are rational in their views and decision making processes.
    Reference from:
    1. Acheson, J. D. Lynch, 2017.; Implications of behavioural economics for tax policy. Retrieve from http://igees'gov.ie/wp-content/uploads/2014/01/Behavioural-economics-and-Tax.pdf%5BAccessedMarch10, 2018].
    2. Alm, J., 2010. Testing behavioural public economics theories in the Laboratory. National Tax Journal, 63:635-658.view@googlescholar|View at publisher, etc.

    Reply
  5. Avatar Uchin Mimi Moses says:
    4 years ago

    Student information
    Name: UCHIN MIMI MOSES

    Reg. No: 2020/242645
    Department: ECONOMICS
    Email: uchinmoses1@gmail.com
    Attempt
    Economics as a science takes on scientific approaches to arrive at theories, laws and generalizations. To achieve this, economists use methods which are basically known as methods of economic analysis. These methods are;
    Deductive method
    Inductive method
    The Deductive method also known as the abstract, analytical or prior method involves the process of generalization that derives conclusion from general truths or phenomenal and analyses to simple conclusions. It talks about economic issues in large aggregates and uses them to draw conclusions on smaller units. For example, it may use the general price level to tackle the problem of individual demands. In summary, the deductive method moves from complex relations to simple phenomenal in tackling economic issues or drawing of generalizations.
    The inductive method also known as the empirical method involves the process of reasoning from simple facts to general principles. This method of analysis derives economic generalizations on the basis of experimentations, observations and statistical methods. In summary, it deals with economic relations from simple to complex. For example, the price of a particular commodity could be used to draw conclusions on the general price level in the market.

    Reply
  6. Avatar Nweke Dominic Ede says:
    4 years ago

    NAME: Nweke Dominic Ede
    Reg No:2018/243563
    Dept: Public Administration and Local Government
    Email Address: domnweke81@gmail.com

    METHODS OF ECONOMICS ANALYSIS
    Like any other science, Economics adopts two important methods in its investigations and formulation of laws and principles. The two methods are:

    Deductive Methods and Inductive Methods.

    Deductive Method of Economics Analysis is known as the analytical abstract a priori method. Here we start with certain formal data and assumptions. Then by logical reasoning we arrive at certain conclusions. We start with undisputed fundamental facts and after adding some assumptions we build up a theory. For instance, it is assumed that businessmen aim at maximum profit. It follows from this that businessmen buy the materials in the cheapest market and sell it in the dearest market.

    In Deductive method of Economic Analysis we proceed from the general to the particular. This is also known as an hypothetical method for some of the assumptions may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions. In economics we start with very simple premises and work up gradually or more and more complex hypotheses.

    A complete form of deductive method consists of three stages, viz.,
    (i)Observation;
    (ii) Deductive reasoning and
    (iii) Instance and testing by means of further observations.
    Deductive reasoning provides us with hypotheses or generalizations. If the hypotheses are tested and verified with relevance to facts, we have valid economic laws.

    Advantages of Deductive Method of Economic Analysis:

    1. Deductive method is exceedingly simple. For example, the law that the utility derived by an individual from a commodity goes on diminishing with every successive addition is a self-evident truth from which we may draw many logical conclusions, viz., larger the stock of money, the lower shall be the utility of money; rich persons have lesser marginal utility of money than the poor people; so taxes should not be levied on proportional basis. If taxes are levied proportionately, the sacrifice of the poor will be larger than the rich. This is against the Canon of equity, etc. Thus the principle of progressive taxation is derived from the law of diminishing utility through deductive reasoning.

    2. Deductive method obviates the necessity of experimentation. Economics being a social science, experimentation may not be available as in the case of physics or chemistry. So, the next best alternative to experiment is deductive reasoning. According to Boulding this method of deductive reasoning is the method of intellectual experiment.

    3. The deductive method results in accuracy and exactness in generalization, because of logical reasoning. The method gives a very high standard of precision in abstract economic reasoning.

    Disadvantages of Deductive Method of Economic Analysis:

    1. Deduction is based mainly on assumptions which are perfectly valid. If assumptions are wrong, generalizations made on the basis of wrong assumptions will be imperfect and invalid. All economic laws are based on too many assumptions where there are more scope for committing errors through wrong hypotheses.

    2. In deduction there is too much of abstraction and economists by means of their intellectual exercises produce only “intellectual toys” having little connection with reality.

    3. Deductive generalizations started on wrong premises will be dangerous when such generalization claim universal validity. Then such faulty generalizations are made use of in framing government policies, the results would be nothing but disastrous. For example, J.B.Say, claimed universal validity for his ‘Law of Markets’ in which he maintained that supply creates its own demand and there will not be over-production in the market. But this celebrated ‘Law of Market’ was torn to pieces when critics proved that Say’s Law was wrong and overproduction would be possible.

    (2) Inductive Method of Economic Analysis

    In this method, economists proceed from a practical angle to problems of science to reduce the gulf between theory and practice. Induction is done by two forms, viz. experimentation and statistical form. Facts are collected first, arranged and conclusions are drawn. Then these general conclusions are further verified with reference to actual facts.

    The inductive method is generally associated with the statistical form of inductions. The statistical approach has a larger field in economic investigations than the method of experimentation. Further, the method of statistical induction is indispensable for the formulation of economic policy. Malthus presented his famous theory of population only after studying the facts of population in various countries; He then used statistics to support his theory. Similarly Engel, the German statistician employed inductive method and used statistics to formulate his law of consumption.

    Advantages of Inductive Method of Economic Analysis:

    1. It is highly practical add realistic as it describes things as they are.

    2. It is helpful in verifying the conclusions of the deductive method.

    3. Economic laws under this method are not universal but valid only under certain conditions.

    Disadvantages of Inductive Method of Economic Analysis:

    1. When the investigators lack a balanced judgement there is the risk of drawing hurried conclusions based on inadequate and irrelevant facts and data.

    2. Collection of facts in the inductive process is a highly complex and complicated job warranting extraordinary understanding to alienate economic from non-economic factors.

    3. Mere induction alone will not deliver goods unless it is supplemented by means of deductive reasoning. Without deduction, the inductive method would result in producing only a mass of unrelated and unconnected facts.

    Deductive or Inductive?
    From the above discussion, we can infer that there is no point in pleading one method against the other. The two methods have to be made use of or blended to achieve the required objective. The two methods, deductive and inductive, are not competitive, but complementary in nature helping the investigator.

    Reply
  7. Avatar OMEKE PRECIOUS OGECHI says:
    4 years ago

    NAME: OMEKE PRECIOUS OGECHI
    REG. NO: 2020/243294
    DEPARTMENT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT
    EMAIL: preciousomeke1@gmail.com
    COURSE CODE: ECO 101
    ECONOMIC ANALYSIS
    Economic analysis can be seen as the study of economic system which is the study of a production process or an industry. Economic analysis is all about analysing the economic aspects of things.
    METHODS OF ECONOMIC
    ANALYSIS
    The basic methods of economic analysis are:- Deductive method and Inductive method or reasoning.
    DEDUCTIVE/DEDUCTION
    METHOD OR REASONING
    Deductive method is also known as an abstract, analytical or priori reasoning. The analysis start from unchallenged elementary or rudimentary facts or assumptions and then arrive at a conclusion using Logical analysis or one personal analytical abilities. So in general, Deductive method consists in deriving conclusion from general truths.
    STEPS IN DEDUCTIVE METHOD OR REASONING
    * Identify the problem:- You need to know the problem in other to get the solution.
    * Make assumptions about the problem.
    * There should be a logical deduction to derive implications.
    * Formulation or making of hypothesis.
    * Make predictions and test the hypothesis deduced using more observation.
    * Predictions should be in agreement with facts.
    “Note, ‘Deductive reasoning gives us hypothesis and if the hypothesis gets verified, we will have a general economic principles of law.'”
    INDUCTIVE METHOD OR REASONING
    Inductive method is also known asa Empirical method. This method is a type of reasoning that flows from facts to theory. First of all, there will be a collection of information or facts and then providing of evidence using economic theory and facts. Inductive method derives economic analysis on the basis of experience and observations. Inductive method formulate principles using sub-methods they are:- Observations, Experimentations and Statistical methods.
    STEPS IN INDUCTIVE METHODS
    * Identify the problem.
    * Define the technical terms and alterables related to the problem found.
    * Collection of datas about the variables related to the problem.
    * Procession of the data collected to find out how the variables are related.
    * Make predictions or foretales on the problem and test them.
    * Predictions are in agreement with facts.

    Reply
  8. Avatar Bahiru Esther Ramat says:
    4 years ago

    the methods of economics analysis
    inductive method is generally associated with the statistical form of inductions .the statisfical approach has lager field in economic investigations than the methods of experiemental futher. the methods of statistical inductions is indispensible for the formulations of economic policy .mathus presented the famous theory of populations only after studing the facts of populaton in various countries ,he then used statistics to support the theory

    2,Deductive method is know as the analytical abstract a piror method .with certain formula ,data and assumptions then by logical reasoning we arrive at certain conclusions .we start with indisputed fundamental facts and after adding some assumption we build up a theory .for instance it is assumed that bussinessmen aim at maximum profit .it follow from this that bussiness men buy the materials in the cheapest market and sell in the dearest market

    Reply
  9. Avatar Favour chinenye Amalaha says:
    4 years ago

    Favour Chinenye Amalaha
    20160903IA
    dectectivefavor@gmail.com

    The basic methods of analysis used by Economists include,
     Deductive Reasoning
     Inductive Reasoning
    Deductive Reasoning
    Deductive Reasoning, also called a priori method, analytical, or abstract method, is an excellent definition of the best expression “moving from the known to the unknown.”
    Here, economists makes conclusion from facts by applying logical reasoning. The whole process starts with identifying a problem, then deriving premises, deducing a hypothesis from the already formed premises, and using logical reasoning to deduce and test the theory. However, this method of analysis creates room for fallacy.
    Inductive Reasoning
    The empirical or inductive analysis method is based purely on experience or experiments, observation, and statistical evaluation. After identifying and defining the problems, an economist will move to gather enough data on all the possible variables. The vast data collected is then processed to construct theories. However, unlike the deductive reasoning approach, inductive reasoning tests these new theories against existing ones. And to ensure the success of this method, economists must collect sufficient data.

    Reply
  10. Avatar Abraham Chibuike Sunday says:
    4 years ago

    Name: Abraham Chibuike Sunday
    Reg no:20033827AF

    What are the basic method of analysis used by economist.

    First before I stated them let me quickly define economic analysis.
    Economic analysis involves the formulations of laws and generalization through two method.

    Now heat are the basic method of analysis used by economists.

    1) Deductive method.
    2) Inductive method.

    1) Deductive method: Now this method can also be called priori reasoning.It is involves the observation of issues,making and building hypothesis using more observation and if adopted then it becomes an economic law. This method is easy as only simple deduction is necessary and boost economic reasoning.

    2). Inductive method: This type of reasoning flows from information, facts,and theory.In this type we first gather facts,information and then move towards bringing proves using economic theory,information and facts.

    Three ways of formulating economics principles and theories.

    1) observation
    2) Econometric method or statistical.
    3) experimentation.

    Name Abraham Chibuike Sunday
    Course Public administration

    Reply
  11. Avatar Chukwu Emmanuel Chimezie says:
    4 years ago

    Chukwu Emmanuel Chimezie
    2020/241925
    emmanuelchukwu846@gmail.com
    2 methods of economic analysis includes: Deductive method and Inductive method.
    Deductive method also called Abstract or analytical method. The Deductive method is unique on it’s own in the sense that it does not involve empirical method. It is not based on experiments.
    steps involved in Deductive method are:
    1. perception of the problem: get to know what the problem entails
    2. define precisely and clearly the technical terms.
    3. deduce hypothesis from assumptions
    4. test the hypothesis
    The Inductive Method(empirical method):
    It deals with experience and observations. it is in this method that data are collected with regard to a certain phenomenon and from the observations and data collected, they make generalizations. 3 ways which can be used for deriving economic principles includes;experimentation, Observation and econometric method.
    Steps involved in Inductive method
    1. Get to know the problem
    2. define technical terms
    3. Collect data and do some preliminary thinking about the possible functional relationship between the relevant variables.
    4. processing of those data collected and find out the relations between variables that actually hold good.
    5. testing of the processed data through statistical method

    Reply
  12. Avatar Ugwu Peter Nnamdi . Reg number 2019/243339. Dept: Pure and industrial chemistry says:
    4 years ago

    Economics analysis involves deploying various methods to analyze the economy by economists.
    The basic methods of economic analysis involves two methods;
    1.deductive method
    2. Inductive method
    The two methods are based on generalization and theory.
    DEDUCTIVE METHOD.
    The deductive method is also called analytical or prior method.It involves deriving conclusions from known accepted truth, takes them and applies them to draw conclusion.Take for instance, if I accept the general proposition that Nigerians are lawless. I can conclusively say that we are uncivilized. We see from above illustration that it moved from general to particular. In deductive method, conclusions cannot of your inference cannot be false given that the premises are true.
    GENERALIZATION STEPS OF DEDUCTIVE METHOD.
    1. Perception of the problem :
    The analyst must have clear and precise idea of the problem to be inquired into.
    2. Find precisely the technical terms, define them and make assumptions.
    3. Deduce hypothesis :
    From the assumptions made, hypothesis are deduced. The hypothesis could be null or unnull hypothesis.
    4. Test the hypothesis ;
    Before generalization or theories are established, hypothesis should be verified through direct observation of events and through statistical methods.
    MERITS OF DEDUCTIVE METHOD
    1. The deductive method is near reality, less expensive and time consuming
    2. The method is simple because it is analytical
    3. The method can help to derive economic theories
    DEMERITS OF DEDUCTIVE METHOD
    1.It is highly abstract, requires alot of care to avoid faulty economic reasoning
    2. Deduction analysis is not applicable universally.
    The imperfections and incorrect assumptions associated with this method that leads to faulty conclusions prompted the classical and neo- classical economists to look for alternative method of economic analysis thus the inductive method.

    THE INDUCTIVE METHOD.
    The inductive method also called empirical method was adopted by Historical School of Economists in a bid to improve faulty assumptions associated with the deductive method. It derives generalization on the basics of experiments, observation and statistical methods. It involves making inferences based on observed patterns or simple repetition, Often used in reference to predict about what will happen or does happen, based upon what has happened. For instance,we observe all UNN students during during rainy season. We find that 90% uses umbrella. Out of the remaining 10%, 6% wear rain coat despite that it is expensive while 4% doesn’t have umbrella nor rain coat. From the above illustration,we can easily draw conclusion that UNN students uses umbrella during rainy season unless they are devoid of common sense.
    MERITS OF INDUCTIVE METHOD.
    1. It’s based on facts and at such is reliable and realistic
    2. Inductive method is dynamic
    The changing economic phenomenon are analysed and on the basics of collected data,solution and conclusions are drawn.
    3. Inductive method helps in future investigation
    DEMERITS OF INDUCTIVE METHOD
    1.It is time consuming and expensive
    2. Data collection is not an easy task
    CONCLUSION
    The two methods discussed above have weakness and cannot be exclusively relied on. Modern economists believe that both methods are complimentary
    They are partners and not rivals. Alfred Marshall said that”inductive and deductive methods are both needed for scientific thought,as the right and left foot needed for walking”.

    Reply
  13. Avatar Anekwe Blessing Ifeoma says:
    4 years ago

    Name: Anekwe Blessing Ifeoma.
    Registration Number: 20726551IF.
    Email: anekweblessing13@gmail.com.
    Department: Public Administration and local Government.

    WHAT ARE THE BASIC METHODS OF ANALYSIS USED BY ECONOMISTS? BRIEFLY AND CONVINCINGLY DISCUSS EACH OF THEM.
    There are basically two methods of analysis used by economists, that are;
    *Deductive method.
    *Inductive method.
    DEDUCTIVE METHOD.
    Deductive method is also called abstract, analytical and a priori method and it represents an abstract approach to the derivation of economic generalizations and theories.

    STEPS OF DERIVING ECONOMIC GENERALIZATION THROUGH DEDUCTIVE LOGIC.
    * Perception of the problem: He/she must have a clear idea of the problem to be enquired into.
    * Defining of technical terms and making of assumption (postulates or premises): Defining precisely the various technical terms to be used in the analysis and also stating clearly the assumption he makes to derive generalizations.
    * Deducing hypothesis through logical deduction:
    This is deriving relationship between the variables having a bearing on the phenomenon.
    * Testing/verification of hypothesis: The hypothesis need to be verified before established as generalization or principles of economics.
    INDUCTIVE METHOD.
    This method also known as empirical method derives economic generalization on the basis of experience and observations. Here detailed data/information are collected with regard to economic phenomenon and effort is made to arrive at a generalization from the observations collected.
    WAYS USED FOR DERIVING ECONOMIC PRINCIPLES AND THEORIES.
    There are 3 ways used for deriving economic principles and theories, they are;
    * Experimentation.
    * Observation.
    * Statistical or econometric method.
    STEPS IN INDUCTIVE METHOD.
    * Identifying the problem.
    * Defining technical terms and variables related to the problem.
    * Collection of data about variables related and doing preliminary thinking about possible relationship between relevant variables.
    * Consumption of economic theories.
    Once the theory is developed one can make predictions on its basis as in the deductive approach. If the new theory works better than the previous ones, it replaced them.
    But if the predictions are against actual facts and behaviour of the economy, they are either discarded or modified by collecting more data and processing them.
    The above discussion comes to a conclusion that both deductive and inductive methods are needed because they are complementary and not competitive.

    Reply
  14. Avatar ADAMGBE IORWUESE AMOS says:
    4 years ago

    NAME:ADAMGBE IORWUESE AMOS
    DEPT: ECONOMICS
    MATRIC NO.2020/242575
    COURSE CODE: ECO 101

    METHODS OF ECONOMIC ANALYSIS
    (1) THE DEDUCTIVE METHOD: Deductive method is essentially a top-down approach which moves from the more general to the more specific. In other words, we start with a general notion or theory, which we then narrow down to specific hypotheses, which are then tested.
    steps involved in Deductive methods are;
    (1)perception of the problem
    (2)postulates/making assumptions
    (3)deduction of hypothesis
    (4)Testing the hypothesis
    INDUCTIVE METHOD:
    The inductive method is more of a bottom-up approach, moving from the more specific to the more general, in which we make specific observations, detect patterns, formulate hypotheses and draw conclusions.
    steps involved in inductive method includes;
    (1) observation
    (2) experience
    (3) econometrics methods

    Reply
  15. Avatar IFEANYICHUKWU HALLELUYAH CHUKWUEBUKA says:
    4 years ago

    NAME: IFEANYICHUKWU HALLELUYAH CHUKWUEBUKA
    DEPARTMENT: Public Administration and Local Government
    MATRIC NO: 2020/243287

    The Brief explanation of the Basic analysis used economists are:
    Economics like any other science, has two major methods in the creation of principles, which includes:
    a) The Deductive Method of Analysis
    b) The Inductive Method of Analysis

    A) The Deductive Method of Analysis:
    This can be know as the abstract and analytical method, which actually deals with assumptions, which are not corresponding with the actual fact and may be close to the fact, but by logical reasoning, we arrive at a conclusion. Deductive reasoning/analysis proceed from general to particular which is know as hypothetic method.
    Deductive Method consists of three stages, which includes:
    i. Observation
    ii. Deductive reasoning
    III. Testing by further observation
    Advantages:
    a) Because of the logical reasoning involved in the Deductive Method, it is able to provide accurate prediction in abstract economic reasoning.
    b) Deductive Method unlike any other science, help economists do away with the need for experiments for arriving at their final conclusion. According to Boulding, this Deductive reasoning is know as ‘INTELLECTUAL EXPERIMENT’.
    Disadvantages:
    a) Deductive Method is based mainly on assumptions and not the actual facts, so therefore, if an assumption is wrong, then generalization made on the assumption is invalid.
    b) In deduction, the use of the mind is too much(abstraction) , which makes them have little or no connection with reality.

    B) Inductive Method of Economic Analysis:
    Inductive Method unlike Deductive method include the use of experiments and statical way of gathering facts, arranging them, and then conclusions are drawn from them in reference to actual facts and connection to reality.

    Advantages:
    i) It is helpful in the verification and cross-checking of the conclusion made through the deductive method.
    ii) It deals more on reality than abstract.

    Disadvantages:
    i) when it comes to gathering the facts, it is complex and complicated
    ii) without deductive method, inductive Method would end up creating unrelated facts because logical reasoning was not applied before arriving at the final conclusion.

    Reply
  16. Avatar Chukwu Augustina Chicheta says:
    4 years ago

    Name: Chukwu Augustina Chicheta
    Matric no: 2020/243289
    Department: Public Administration and Local Government
    Email: chukwuaugustinac98@gmail.com

    The basic method of analysis used by economist are Deductive method and Inductive method.

    1. Deductive method of reasoning is a process of reasoning from one or more statements to reach conclusions.
    The deductive method also known as abstract, analytical represent abstract approach to the derivation of economic generalization and theories.
    The steps in the process of deriving economic generalization through deductive method are;
    i. Perception of the problem.
    ii. definition of technical terms and making os assumption.
    iii. deducing hypothesis through logical deduction.
    iv. Verification of hypothesis.

    2. Inductive method of analysis is a method of reasoning in which statements are viewed as supplying some evidence, but not full assurance, of the the the conclusion.
    In inductive method of analysis, one’s experiences and observations, including what’s learned from others, ara synthesized to come up with a general truth.
    Here are the steps in developing economic theories through inductive method are:
    i. Identifying the problem.
    ii. defining the technical terms and variables related to the problem.
    iii. collection of data about the variables related to the problem.
    iv. construction of economic theories etc.

    Reply
  17. Avatar Eze Mmesoma Benita says:
    4 years ago

    Eze Mmesoma Benita
    2020/243277
    ezebenita55@gmail.com
    Public Administration and Local Govt
    Question
    1, what are the basic methods of analysis used by economist? Briefly and convincingly discuss each of them
    Answer
    1,first and foremost it’s very vital to note that every economic has it challenges,any economic Analysis involves the formulation of laws and generatization through two method which are
    1Deductive method
    2Inductive method
    Deductive method:This is also called a prior reasoning .we start from unchallenged elementary or rudimentary assumptions/facts and then aim at conclusions(build a hypothesis or theory)using logiccal analysis as our own analytical abilities .In this kind of reasoning we go from general to specific .i.echanging your generalization to theories.The stages involved in deductive method are as follows:
    *Observation of a task / issue;observe and identify the problem or the issue bcause without the problem there cannot be a theory.
    *Making the hypothesis;The hypothesis needs to be made in order to test it.
    *Testing the hypothesis:Test the hypothesis using more observations.
    Inductive method:This type of reasoning flows from facts to theory,first we collect information and facts and then move towards providing evidence using economic theory and facts.Data is collected about a particular economic theory and then conclusion are drawn .The stages in this method include :
    *Observation : observe and identify the problem or the issue
    *Formulation of hypothesis:you get to formulate your hypothesis in order to test later on.
    *Generalizing principle:you generalize the principle
    *Verifying against actual facts:Also known testing your hypothesis because in the process of this you can actually pick the fact that are true or not.

    Reply
  18. Avatar ONYEJE CHIDUMEBI ONYINYECHI says:
    4 years ago

    NAME: CHIDUMEBI ONYEJE
    REG NUMBER: 20683830DF
    DEPARTMENT: ECONOMICS

    Methods of Economics Analysis:

    Like any other science, Economics adopts two important methods in its investigations and formulation of two laws and principles. The two methods are:
    1. Deductive method
    2. Inductive method

    1. Deductive method of economic analysis: Deductive method is known as the analytical abstract, a prior method. Here we start with certain formal data and assumptions, then by logical reasoning we arrive at certain conclusions. We start with undisputed fundamental facts and after adding some assumptions we build up theory. For instance, it is assumed that business men aim at maximum profit. It follows from this that business men buy the materials in the cheapest market and sell it in the nearest market.
    In deductive method of economic analysis we proved from the general to the particular. This is also known as an hypothetical method for some of the assumptions may not correspond to actual facts which may be used as premise for starting, reasoning and drawing conclusions

    2. Inductive method of economic analysis: In this method, economists proceed from a practical angle to problem of science to reduce the gulf between theory and practice. Induction is done by two forms, viz ; experimentation and statistical form. Facts are collected first, arranged and conclusions are drawn. Then these general conclusions are further verified with reference to actual facts.
    The inductive method is generally associated with the statistical form of inductions. The statistical approach has a larger field in economic investigations than the method of statistical induction in indispensable for the formulation of economic policy.

    Reply
  19. Avatar Amadi Sylvia Chinwendu says:
    4 years ago

    Name:Amadi Sylvia Chinwendu
    Reg no:20649454GA
    Matric no:2020/243138
    Dept:Public administration and local government

    METHODS OF ECONOMICS ANALYSIS
    (1)DEDUCTIVE METHOD
    (2)INDUCTIVE METHOD

    (1)INDUCTIVE METHOD:This is also called abstract,analytical and prior method and represent an abstract approved to the derivation and theories
    THE PRINCIPAL STEPS IN THE PROCESS OF DRIVING ECONOMIC GENERALISATION THROUGH DEDUCTIVE LOGIC ARE :

    (a)Perception of the problem to be required into
    (b)Defining precisely the technical terms and making appropriate assumption,often called postulate or premises
    (c)Deducing hypothesis that is driving condusions from the premises through the process of logical reasoning and
    (d)Testing of hypothesis deduced

    INDUCTIVE METHOD:The inductive method method is also called empirical method drives economic generalization on the basic of experience and observations .ln the method details that are collected with regards to a certain economic phenomenon and effects is then made to arrive at certain generalisations which follows from the observations collected,but is worth mentioning that the number of observations has to be large if it can yield a valid economic generalisation one should not generalise on the basis of a very few observation .
    They are three ways which can be used for driving economic principals and theories they are ;
    Experimentation
    Observation
    Statistical or econometric method
    CONCLUSION INTERGRATION OF TWO METHODS
    Now the controversy which existed among the earlier economists as to weather deductive or inductive approach is more appropriate in developing economic theories and principals has been resolved the modern view point in this regards is that both are needed for the proper development of scientific economic theories,indeed the two are complementary rather than competitive.

    Reply
  20. Avatar Echegu Rita udochukwu says:
    4 years ago

    METHOD OF ECONOMICS ANALYSIS
    We have two main method of economic analysis which includes
    1.Deductive and
    2.Inductive reasoning/method
    Deductive method is representation of an approach to the derivation of economic analysis to a certain conclusion.it also known as analytical, abstract and prior method which derives conclusion from the premises through the process of logical reasoning and a technical way of assumption.
    Advantage of deductive method/reasoning
    *It very easy to operate;it’s less expensive
    *The use of mathematical method in Deductive logic helps the economist to introduce accurate estimate in economic principles and theory
    *It also can draw conclusion with out detailed collection of data
    Disadvantage of deductive method
    *In Deductive reasoning is there is much of abstraction and economist through their intellectual exercises relating to reality.
    INDUCTIVE REASONING also known as empirical method derives economic analysis through the basis of theory and practice.it is also associated with statistical form of induction where facts are first collected and conclusion are drawn which later turn to actual facts.
    Merit of inductive method
    *Inductive method of economic analysis is realistic and practical
    *It helps in verifying the conclusion of the deductive method
    Demerit of inductive method
    *Inductive method has its demerit which includes; drawing conclusion from insufficient data to obtain generalizations of economic analysis.

    Reply
  21. Avatar Innocent Ogbonna says:
    4 years ago

    Ogbonna Innocent Victor
    2020/243210
    valentineinnocent111@gmail.com
    Dept: PALG

    Methods of economical analysis

    Deductive method gets it’s conclusions from fundamental assumptions or from truth established by other methods
    The processes involved in this method are;
    *Selecting the problem
    *The formulation of assumptions on the basis of which the problem is to be explored
    *The formulation of hypothesis through the process of logical reasoning
    *Verifying the hypothesis

    Advantages
    * Its a simple method: it simplifies complex problem by dividing it into component parts
    * Universal: it’s more scientific which makes it more universally acceptable
    * It’s efficienct

    Disadvantages
    *Unrealistic assumptions: when facts refute the the theory based on the tested hypothesis the assumption are also indirectly refuted. So deduction depends upon the nature of assumptions
    *Incorrect verification: the verification of theories is based on observation and right observation depends upon data which just be correct .

    Inductive Method
    Is the process of collecting facts, arranging them and then drawing conclusions from them.
    The processes involved in this method are;
    *Identifying the problem
    * Collecting data
    *Observation
    *Generalisation

    Advantages
    *Realistic: this method bus realistic because it’s based in facts and explains them as they are
    *Statistical : this method makes use of the statistical method
    *Dynamic: this method is dynamic because of its changing phenomenon which can be analysed on the basis of experiences, conclusion can be drawn

    Disadvantages
    Misinterpretation: this method relies on statistical numbers for analysis that can be misused when the assumption are required
    *Expensive: this inductive Method is as costly as it is time consuming. The processes of data collection is a very difficult job
    * Controlled experiments are not possible in economics.

    Reply
  22. Avatar Echegu Rita udochukwu says:
    4 years ago

    METHOD OF ECONOMICS ANALYSIS
    the two main method of economic analysis
    Which are
    1.Deductive and
    2.Inductive Method/Reasoning
    DEDUCTIVE REASONING: this is a representation of an approach to the derivation of economic analysis to a certain conclusion.it is also known as abstract, analytical and prior method.it draw conclusion from the premises through the process of logical reasoning and technical way of assumption.
    I deductive reasoning has its merit and demerit which includes ,
    Advantage of deductive method
    1.its simple cause it derives important economic analysis with out detailed collection of data
    2.the use of mathematical method in deductive logic helps the economist to introduce accurate estimate in economic principles and theory
    Disadvantge of deductive method
    *In deductive reasoning derivation of economic hypothesis and conclusion through deductive reasoning, assumption leads to a bad role
    INDUCTIVE REASONING
    Inductive method of economic analysis is also known as empirical method which derives economic analysis through the basis of theory and practical.it is generally associated with statistical form of induction where facts are first collected and will turn into actual facts later.
    Inductive method has three ways which can be used for derivation of economic analysis which are
    1.Experiment
    2.Observation and
    3.Econometric method
    Merit of inductive method/reasoning
    * It is realistic and practical
    * It helps in verifying the conclusion of the deductive method
    Demerit of inductive method
    *It draws conclusion from insufficient data to obtain generalization of economic analysis.

    Reply
  23. Avatar Echegu Rita udochukwu says:
    4 years ago

    METHOD OF ECONOMICS ANALYSIS
    themain method of economic analysis
    Which is
    1.Deductive and
    2.Inductive Method/Reasoning
    DEDUCTIVE REASONING: this is a representation of an approach to the derivation of economic analysis to a certain conclusion.it is also known as abstract, analytical and prior method.it draw conclusion from the premises through the process of logical reasoning and technical way of assumption.
    I deductive reasoning has its merit and demerit which includes ,
    Advantage of deductive method
    1.its simple cause it derives important economic analysis with out detailed collection of data
    2.the use of mathematical method in deductive logic helps the economist to introduce accurate estimate in economic principles and theory
    Disadvantge of deductive method
    *In deductive reasoning derivation of economic hypothesis and conclusion through deductive reasoning, assumption leads to a bad role
    INDUCTIVE REASONING
    Inductive method of economic analysis is also known as empirical method which derives economic analysis through the basis of theory and practical.it is generally associated with statistical form of induction where facts are first collected and will turn into actual facts later.
    Inductive method has three ways which can be used for derivation of economic analysis which are
    1.Experiment
    2.Observation and
    3.Econometric method
    Merit of inductive method/reasoning
    * It is realistic and practical
    * It helps in verifying the conclusion of the deductive method
    Demerit of inductive method
    *It draws conclusion from insufficient data to obtain generalization of economic analysis.

    Reply
  24. Avatar Echegu Rita udochukwu says:
    4 years ago

    METHOD OF ECONOMICS ANALYSIS
    In economics we have two main method of economic analysis which are
    1.deductive and
    2.inductive method or Reasoning.
    *DEDUCTIVE REASONING:this is a presentation of approach through the derivation of economic analysis to a certain conclusion.deductive logic also Know as analytical, abstract and prior method draws conclusion from the premises through the process of logical reasoning and a technical way of assumption.it also has its demerit and merit which are;
    Advantage of deductive method
    *It is simple because through deductive reasoning important economic theories can be drawn with out detailed collection of data.
    *The use of mathematical method in deductive logic helps the economist to introduce accurate estimate in economic principles and theory.
    Disadvantage of deductive method
    *The derivation of economic hypothesis and conclusion through deductive reasoning, assumption leads to bad role.
    INDUCTIVE REASONING
    Inductive method also known as empirical method derives economic conclusion through the basis of theory and practice.inductive reasoning is generally associated with statistical form of induction where facts are first collected and conclusion are drawn which later turn to actual facts.
    Inductive method has three ways which can be used for derivation of economic principles which are
    *Experiment
    *Observation and
    *Econometric method.
    Advantage of inductive method
    *Inductive reasoning is realistic and practical.
    *it help in verifying the conclusion of the deductive method
    Disadvantage of inductive method
    Inductive reasoning has its own disadvantage which is drawing conclusion from insufficient data to obtain generalization.

    Reply
  25. Avatar Obiefuna Evaristus Chibuike, 2019/245832.... Pure and Industrial Chemistry says:
    4 years ago

    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Deductive And Inductive Methods

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data

    Reply
  26. Avatar Ogbonna faith chidinma says:
    4 years ago

    Reg no__20683659DF
    Department__public Administration and Local Government

    Two methods of economics analysis are:
    Deductive and inductive method..
    1.DEDUCTIVE METHOD___This is also called a priori reasoning,it will start from unchallenged elementary or rudimentary assumptions (fact and then arrive at conclusions (build a hypothesis or theory) Using logical analysis or our own analytical abilities.In this kind of reasoning will go from general to specific..

    THE STAGES INDUCTIVE method are:
    a.. Observation of a fact and issues
    b.. Making the hypothesis, Testing the hypothesis using more observation

    __Advantage of deductive method is _
    It is a simple method,it doesn’t involve the use of any complex software analysis

    2 ..INDUCTIVE METHOD
    This type of reasoning flows from fact to theory.first,it will collect information and facts and then move towards providing evidence using economic theory and facts ..This methods formulates principles using the observations, experimentation, statistical methods.
    ADVANTAGE of inductive method
    1.Since it is based on fact,it is more realistic and reliable.
    DISADVANTAGE of inductive method
    1.it is a time consuming process and expensive as well.

    Reply
  27. Avatar ODIGIDAWU IFEANYI (2019/249004) says:
    4 years ago

    ODIGIDAWU IFEANYI
    2019/249004

    PURE AND INDUSTRIAL CHEMISTRY

    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive
    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    Reply
  28. Avatar UGOCHUKWU DAVID PRECIOUS,2019/250069 says:
    4 years ago

    NAME:UGOCHUKWU DAVID PRECIOUS
    DEPARTMENT:PURE AND INDUSTRIAL CHEMISTRY
    FACULTY:PHYSICAL SCIENCE
    REG NO:2019/250069
    WHAT IS THE BASIC METHODS OF
    ANALYSIS USED BY

    This process actually involves two basic methods which are Deductive and inductive.

    THE DEDUCTIVE METHOD
    This is method can also be referred to as a priori reasoning. We start from unchallenged elementary assumptions and then arrive at conclusions i.e (build a hypothesis or theory) using logical analysis . In this kind of reasoning, we have to go from general to specific.
    The stages in deductive reasoning includes:
    * Observation of a task
    * Making the hypothesis
    * Testing the hypothesis using more observations.
    This reasoning actually gives us a hypothesis and if this hypothesis gets verified we will get a general economic principles or laws.

    ADVANTAGES OF A DEDUCTIVE
    METHOD
    * It is a simple method, which doesn’t involve the use of any complex software analysis.
    * Simple deductive logic is required.
    * This method is really important for economists as it focuses upon economic reasoning which is importance.

    THE DISADVANTAGES OF AN
    DEDUCTIVE
    METHOD
    This method of reasoning will start from assumptions, thus, if the assumptions happen to be logically flawed then the whole process becomes faulty which leads to wrong conclusions.

    INDUCTIVE METHOD
    This kind of reasoning flows from facts to theory. We have to collect informations and then move towards providing evidence using economic theory and facts.
    This method formulates principles using the sub-methods which are:
    *Observations
    *Experimentations
    *Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method includes:
    * Observation
    * Formulation of a hypothesis
    * Generalizing principles
    * Verifying against actual facts.

    THE ADVANTAGES OF AN INDUCTIVE METHOD
    * Since this method is based on facts it is more realistic.
    * Using the statistical methods and experimentations makes the process more scientific, thus.
    * Since the economic environment is dynamic,relying upon a more scientific method will always helps in reaching logical conclusions.

    THE DISADVANTAGES OF AN INDUCTIVE
    METHOD
    * The data that is been used is insufficient and faulty it would lead to faulty conclusions, thereby making the hypothesis less reliable.
    * It is a time-consuming process.
    * The collection of all the data is not an easy job.
    * It varies from person to person. As to how they collect the data.

    Reply
  29. Avatar OKEKE CHIDERA ESTHER says:
    4 years ago

    Methods of Economic Analysis
    DEDUCTIVE METHOD
    INDUCTIVE METHOD
    DEDUCTIVE METHOD:The deductive method is also called abstractive ,analytical and apriori method and represents an abstract approach to derivation of economic generalisation and theories .
    THE STAGES IN DEDUCTIVE
    a. Observation of a task or issues
    b. Making the hypothesis
    c. Testing the hypothesis using more observation etc.
    ADVANTAGES OF DEDUCTIVE
    a.It is simple method doesn’t involve the use of any complex software etc.
    b.Only simple deductive logic is required
    DISADVANTAGES OF DEDUCTIVE
    a. The great demerit of deductive is that it highly sophisticated theoretical

    2. INDUCTIVE METHOD:This deductive method is the type of reasoning that flows from Facts to theory ,first we collect information and facts and then move towards providing evidence using economic theory and facts
    STAGES IN INDUCTIVE
    a. Observation
    b. Formulation of a hypothesis
    c. Generalizing principles
    d. Verifying against actual facts
    ADVANTAGES OF INDUCTIVE
    a. Since it us based on facts it is more realistic and reliable
    DISADVANTAGES OF INDUCTIVE
    a. It is a time consuming process
    b. The collection of all the data is not an easy job and varies from person to person

    Reply
  30. Avatar Orji Chinweotito Esther (2019/241729) says:
    4 years ago

    METHODS OF ECONOMIC ANALYSIS
    There are basically two methods of economic analysis
    1. Deductive method
    2. Inductive method
    EXPLANATION
    Deductive Method
    The deductive Method is also called abstract, analytical or a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific.

    The stages in deductive reasoning are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    Disadvantages of Deductive Method
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method
    formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn.

    The stages in this method are:
    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person as to how they collect data.

    Reply
  31. Avatar Ekoli Franklin chukwuebuka....reg.no. 20693608HA says:
    4 years ago

    The methods used by economist analysis
    1. Deduction Method
    2. Inductive Method
    DEDUCTION METHOD- methods used in deduction by economist are..
    (a). Perception of the problem to be enquired into
    (b). defining precisely the technical terms and Making appreciate assumptions, often called POSTULATES OR PREMISES
    (c). deduction hypothesis, that’s deriving conclusions from the premises through the process of logical reasoning
    (d). testing of hypothesis deducted
    PERCEPTION OF THE PROBLEM TO BE ENQUIRED
    The analyst must know the significant variables regarding whose behavior and interrelationships he wants to derive generalizations and must have a clear ideas of the problem to be enquired into.
    THE TECHNICAL TERMS AND MAKING APPRECIATE ASSUMPTIONS
    Assumptions may be behavioral pertaining to the behavior of the economic variables or they may be technological aspects relating to the state of technology and the factor endowment. the main assumptions that has been taken in economics is that consumers try to maximize there satisfaction and producers try to maximize their risk and maximize the expected rate of their profits. the crucial factor in building up a valid theory is whether it’s predictions are corroborated by the facts in the world. A correct scientific theory or generalizations must expressed in the form of a HYPOTHESIS that is conceivably refutable

    DEDUCTION HYPOTHESIS THROUGH LOGICAL DEDUCTION.
    A hypothesis describes relationship between factor affecting a phenomenon. it establishes the cause and effect. relationship between the variables having a bearing on the phenomenon through logical process.hypothesis is deduced from the assumption made. this logical reasoning may be carried out verbally or it may be conducted in symbolic terms using the language of what is known as SYMBOLIC LOGIC.
    It is worthwhile to note that in deriving analytically sound hypothesis,one should guard against commiting logical fallacy in the process of logical deduction.egs. it is inappropriate to conclude that A must be the cause of B, if A happens to proceed B.
    TESTING OR VERIFICATION OF HYPOTHESIS
    This is the final stages l of deducting method used by economist.hypothesis obtained above have to be verified before they are established as generalizations or principles of economics.
    for the verification of hypothesis economist cannot make controlled experiment because they have to discover uniformities in behavioral pattern of man.
    INDUCTIVE METHOD- The inductive Method which is also called empirical methods derive economic generalization on the basic of experience and observations. detailed data are collected with regards to certain economics phenomenon and effort.
    WAYS WHICH CAN BE USED FOR DERIVING ECONOMICS L AND THEORIES
    a. Experimentation
    b. Observations
    c. Statistical or econometric methods
    THE EXPERIMENTATION.
    This is the use of contrived experiment is of limited applicability in economics. Experiments have been conducted to find out which law of production is valid, that is whether law of diminishing returns operates in the real world.
    STEPS IN INDUCTIVE METHODS
    Various steps are gone through in developing economics theories through inductive Method
    a. In the deductive approach is to identify the problem
    b. Defining technical terms and variables related to problem.
    c. Collection of data
    d. processing of data collected and finding out what relations between the variables actually hold good

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  32. Avatar Nwaeze chimdalu Stephanie says:
    4 years ago

    Economic Analysis
    We have two methods of economic analysis
    1.) Deductive method
    2.) Inductive method
    Deductive method is starting with undisputed fundamental facts and after adding some assumptions it builds up into a theory. It is also called Hypothesis.

    Inductive method is based on experiences and observations to derive economic generalizations. This type of reasoning flows from facts to theory. First, we collect information and facts and then move toward providing evidence using economic theory and facts.

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  33. Avatar Enumah Chinecherem promise. 2019/241057. Pure and industrial chemistry says:
    4 years ago

    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: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) Experimentations (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.

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  34. Avatar Elochukwu Chinecherem Cynthia,2029/24558 says:
    4 years ago

    The basic economic method are
    (1) Deductive and Inductive method
    DEDUCTIVE METHOD
    In this kind of method, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    ADVANTAGE OF DEDUCTIVE METHOD
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    DISADVANTAGES OF DEDUCTIVE METHOD
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    INDUCTIVE METHOD
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods. Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    ADVANTAGES OF INDUCTIVE METHOD
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    DEMERIT OF INDUCTIVE METHOD
    (1)If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.

    (2)it is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

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  35. Avatar OBI FRANCISCA NWAMAKA says:
    4 years ago

    Obi Francisca Nwamaka
    Faculty of Education
    Department of Social Science Education
    ECO 101- PRINCIPLE OF ECONOMICS
    25/08/2021

    What are the basic methods analyses used by the Economists?
    Any economic analysis involves the formulation of laws and generalizations through two methods-
    1. Deductive Method
    2. Inductive Method
    – Briefly and convincingly discuss each of them
    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions (build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific.
    The stages in deductive reasoning are:
    • Observation of a task/ issue
    • Making the hypothesis
    • Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.
    Advantages of Deductive Method
    • It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    • This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    • Observation
    • Formulation of a hypothesis
    • Generalizing principles
    • Verifying against actual facts.
    Advantages of Inductive Method
    • Since it is based on facts it is more realistic and reliable.
    • Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    • Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    • If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    • It is a time-consuming process and thus expensive as well.
    • The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  36. Avatar Ossai Benita Toochukwu says:
    4 years ago

    Name:Ossai Benita Toochukwu
    Reg no:2019/245534
    Dept:Pure and Industrial Chemistry
    Email:ossaibenita@gmail.com
    METHODS OF ECONOMIC ANALYSIS
    The generalisations of economics like the laws of other sciences, state cause and effect relation­ships between variables and describe those economic hypotheses which have been found consistent with facts or, in other words, have been found to be true by empirical evidence. But a distinction may be drawn between a generalisation (law) and a theory.
    Some of the most important methods of economic analysis are as follows: 1. Deductive Method 2. Inductive Method
    Deductive method:Deduction Means reasoning or inference from the general to the particular or from the universal to the individual. The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of facts.
    Then inferences are drawn which are verified against observed facts. Bacon described deduction as a “descending process” in which we proceed from a general principle to its consequences. Mill characterised it as a priori method, while others called it abstract and analytical.
    Deduction involves four steps: (1) Selecting the problem. (2) The formulation of assumptions on the basis of which the problem is to be explored. (3) The formulation of hypothesis through the process of logical reasoning whereby inferences are drawn. (4) Verifying the hypothesis.
    Inductive method:The inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.
    But, it is worth mentioning that the number of observations has to be large if it can yield a valid economic generalisation. One should not generalise on the basis of a very few observations. There are three ways which can be used for deriving economic principles and theories.
    They are:(a) Experimentation,(b) observations,(c) statistical or econometric method.

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  37. Avatar Odeh Cynthia Chiamaka says:
    4 years ago

    Name: Odeh Cynthia Chiamaka
    Reg No: 2019/243333
    Dept: pure and industrial chemistry
    Eco 101 assignment

    There are two major methods used by economists to carry out economic analysis. These involves a series of clear observations, analysis and critical thinking which will be explained below. These include the Deductive and Inductive methods respectively.

    1. Deductive method: The deductive method is also called abstract, analytical and a prior method and represents an abstract approach to the derivation of economic generalizations and theories.
    The principal steps in the process of deriving economic generalizations through deductive steps are:
    a. Perception of the problem: In any scientific enquiry, the analyst or theorist must have a clear idea of the problem to be enquired into. There is always the need to set a significant variables regarding whose behavior and interrelationship will need to derive such generalizations. He must identity a certain problem and diligently derive a suitable generalizations from already observed phenomenon.
    b. Definition of technical terms and making of assumptions: This is also an important step in the process of deriving economic generalizations is to define precisely and unambiguously the various technical terms to be used in the analysis well as to state clearly the assumptions he wants to derive generalizations.
    c. Deducing hypotheses through logical deduction: It is imperative in this step to derive generalizations through deductive logic is deducing hypotheses from the assumptions or premises taken.
    d. Testing or verification of hypotheses: Hypotheses obtained above have to be verified before they are established as generalizations or principles of economics. For the verification of hypotheses, economists cannot make controlled experiments, because they have to discover uniformities in behavior patterns of man.

    2. Inductive method: The inductive method which is also called empirical method derives economic generalizations on the basis of experience and observations. This method involves the establishment and collection of clear data with regard to a certain economic phenomenon and effort is then made to arrive at certain generalizations which follow from the observations collected. It is worthy of note that the number of observations has to be large if it can yield a valid economic generalizations. This also entails a clear and detailed observations and collection of data before any generalization is made.

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  38. Avatar Eleje Henry Chukwudi pure and industrial chemistry Reg number 2019/250629 says:
    4 years ago

    The simple strategies of monetary analysis used by economists are the Deductive technique and the Inductive method. Economic
    generalizations describe the laws or statements of tendencies in numerous branches of economics, along with production, intake, alternate, and distribution of income. In the view of Robbins, economic generalizations or legal guidelines are statements of uniformity which describe human conduct within the allocation of scarce resources between alternative ends.
    The generalizations of economics like the laws of different sciences, kingdoms, cause and impact relationships between variables and describe those financial hypotheses which have been found consistent with records or, in other words, have been located to be true by using empirical evidence. But a distinction may be drawn between a generalization (regulation) and a concept. 
    1. Deductive method of monetary evaluation:
    The deductive approach is also called the abstract, analytical, and a priori approach, and represents a summary method for the derivation of financial generalizations and theories.
    The essential steps in the manner of deriving financial generalizations through deductive common sense are:
    (a) belief of the problem:
    In any scientific enquiry, the analyst or theorist has to have a clean idea of the problem to be enquired into. He must recognise the enormous variables concerning whose conduct and relationships he wants to derive generalizations. The notion of trouble is by no means an easy task.
    (b) Definition of Technical terms and Making of Assumptions:
    The next step within the system of deriving economic generalizations is to outline exactly and unambiguously the various technical phrases for use within the evaluation, in addition to the country without doubt, the assumptions he makes to derive generalizations.
    Assumptions may be behavioral, referring to the behavior of the monetary variables, or they may be technological, referring to the kingdom of generation and the issue of endowments. The crucial assumptions are made on the basis of observations or introspection.
    (c) Deducing Hypotheses via Logical Deduction:
    The next step in deriving generalizations through deductive logic is deducing hypotheses from the assumptions or premises taken. A hypothesis describes dating between elements affecting a phenomenon; it establishes the motive and effect of dating among the variables having a bearing on the phenomenon.
    Then, through logical technique, a hypothesis is deduced from the assumptions made. This logical reasoning may be accomplished verbally or it is able to be carried out in symbolic phrases through the usage of what’s known as symbolic logic.
    The geometric or picture technique is likewise typically hired to deduce hypotheses about the connection between elements. Except, the procedure of logical deduction can be completed with the help of greater formal mathematics.
    (d) testing or Verification of Hypotheses:
    Hypotheses acquired above need to be demonstrated earlier than they may be set up as generalizations or principles of economics. For the verification of hypotheses, economists can not conduct controlled experiments due to the fact that they should find out the unifor­mities in the conduct styles of men.
    We can’t do experiments with guys below managed conditions, consisting of in laboratories, as physical scientists do experiments with inanimate gadgets of nature and biologists do those with animals and vegetation. Consequently, economists have to depend on uncontrolled experience and observations.
    The statistics regarding uncontrolled enjoyment of the behavior styles regarding variables about man and the economic system are quite amply available. The reliance by economists on uncontrolled experiences, however, does increase the wide variety of observations required to verify the hypotheses or to establish the generalizations.
    deserves and merits of deductive technique:
    With the aid of rigorous mathematical judgment, monetary theories can be developed through the system of deduction, which can correctly provide an explanation for economic phenomena. Secondly, via deductive logic, useful monetary theories can be derived without the tenuous and distinct collection and analysis of data which might be required underneath the inductive technique. Therefore
    , in comparison to inductive techniques, deduction is much less time-ingesting and less expensive. Thirdly, in view of the restricted scope for managed experimentation in economics, the approach of deduction is an extremely useful technique for building economic theories. This is due to the fact that several forces act simultaneously on an economic phenomenon and it isn’t viable to remove a number of these with the aid of a managed experiment.
    This suggests the vital significance of deductive good judgment for building up monetary principles or theories. Fourthly, the usage of sophisticated mathematical techniques within the deductive approach permits economists to introduce accuracy and exactness into economic standards and theories. Regardless
    of the above-cited merits, the shortcomings of the deductive approach should now not be unnoticed. The usage of the deductive method in deriving financial generalizations requires using a high-level competence in logic and theoretical abstraction. Similarly
    , a great demerit of the deductive technique is that with it, highly state-of-the-art theoretical models based totally on surprisingly unrealistic assumptions may be evolved which do not have any operational importance. Indeed, such highly beside the point analytical fashions with little empirical content and incapable of being used for coverage systems have in truth been evolved by economists. Such fashions are not any more than mere “highbrow toys”. If economics is to function as a device for social betterment, the building of such theoretical fashions having no operational use ought to be averted. Finally
    , in the derivation of financial hypotheses and conclusions via deductive common sense, assumptions play a vital function. If the assumptions made are such that when on doing away with them, economic speculation based totally on them is refuted, then the making of these assumptions isn’t legitimate. Hence
    , a person who uses a deductive approach should usually keep in mind to what extent the validity of generalizations derived depends on the assumptions made. As an instance, Keynesian macroeconomic analysis is based totally upon the assumption of a melancholy-ridden capitalist financial system with a variety of excess effective capabilities. Consequently
    , a fine harm has been done in making use of the Keynesian theories in the context of growing countries like ours in which the assumptions made by using Keynes do no longer hold good. Consequently, mere “deductive arm-chair evaluation” should be avoided, if the clinical persona of economics is to be maintained.
    2. Inductive method of economic analysis
    The inductive technique, which is also called the empirical approach, derives economic generalizations on the basis of experience and observations. In this technique, precise facts are collected in regards to a positive economic phenomenon and effort is then made to arrive at sure generalizations which follow from the observations accumulated. However
    , it’s really worth citing that the variety of observations has to be huge if it may yield a valid economic generalization. One must not generalize on the premise of a few observations. There are three approaches which may be used for deriving financial principles and theories.
    (a) Experimentation,
    (b) observations,
    (c) statistical or econometric methods.
    As has been cited above, experimentation, that is, the use of contrived experiments, is of restrained applicability in economics. First, in contrast to natural sciences, which can be concerned with studying the behavior of both inanimate objects or obedient animals, inclusive of rats and rabbits under the influence of chloroform, economics deals with the behavior of man, who’s quite fickle, wayward, and unmanageable. Except
    , man can not tolerate the idea of being experimented upon, either individually or collectively. Secondly, a monetary phenomenon is the result of a multiplicity of factors and reasons performing and interacting with each other. Consequently
    , financial phenomena no longer repeat themselves within an equal uniform pattern. Numerous elements appearing in a monetary phenomenon ‘disturb’ it and make its precise repetition unlikely. For that reason, compared with herbal phenomena, financial phenomena are less uniform in pattern, much less repetitive and more variable.
    Thirdly, economists study the financial phenomena wherein corporations, along with employees’ associations, alternate unions, farming, political events with their distinctive ideologies, and sports make it tough to conduct controlled experiments in the economic world. However, in spite of those problems, experimental methods can be utilized in some fields. As
    an example, experiments have been conducted to find out which regulation of production is valid. That is, whether or not regulation of diminishing returns, the law of consistent returns, or regulation of increasing returns operate within the real international. Except, public undertakings or massive commercial corporations often attempt to check the impact of the adjustments on the fees on their products at the call for it and accordingly find out the call for elastic­ity of their merchandise.
    various Steps in the Inductive method: Diverse
    steps are gone through in growing monetary theories through an inductive approach. Step one, as in the deductive technique, is to perceive the problem. The second step is defining technical phrases and variables associated with the trouble. It
    is the next step that is unusual for the inductive approach, particularly, the gathering of facts about the variables related to the trouble and doing some preliminary consideration of the viable practical relationships between the applicable variables. The
    following important step in the production of monetary theories in this approach is the processing of statistics collected and locating out what family members between the variables surely maintain good. From this, a principle was developed which can be subtle and examined through statistical methods. As
    soon as the idea has evolved, you may make predictions on its foundation, as is executed in the deductive technique. If predictions of concepts are in settlement with the facts and actual behavior of the economy, then a new dependable theory has evolved. If a brand new idea explains “how matters work” better than the prevailing ones, it replaces them.
    assessment of Inductive technique:
    As has been explained above, observations of information through series of specific records and the usage of statistical methods to arrive at monetary generalizations setting up relationships between facts are being increasingly made. A
    number of recent research in the area of macroeconomics, consisting of the nature of intake feature describing the relationship between income and consumption, and the principle of acceleration describing the factors which determine investment within the economic system, have been acquired via the use of an inductive approach.
    The inductive approach has some other issues in that there is a high-quality risk of conclusions being drawn from inadequate statistics. To achieve generalizations via inductive technique, one must take care that a sufficient number of observations or statistics have been taken under consideration. Except
    , the gathering of information itself is likewise no longer a clean venture. And a researcher who desires to use the inductive method to arrive at generalizations must have proper information about statistical techniques. That is, he should understand the art of accumulating, processing, and inter­preting records. It’s apparent that compared with the deductive technique, the inductive approach is time-eating and expensive.

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  39. Avatar Mpama Onyinyechi ada says:
    4 years ago

    Name: Mpama Onyinyechi ada
    Reg no: 20678320df
    Education economics

    Methods of Economic Analysis

    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.

    Methods of Economic Analysis

    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    Disadvantages of Deductive Method;
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    Advantages of Inductive Method;
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of Inductive Method;
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  40. Avatar ODO PHILOMINA CHINASA 29803740BA says:
    4 years ago

    ASSIGNMENT ON ECO 101
    NAME: ODO PHILOMINA CHINASA
    REG NO: 29803740BA
    DEPT: EDUCATION AND ECONOMICS
    Email address: philominachinasa54@gmail.com

    The basic methods of analysis used by economists are:

    1. DEDUCTIVE METHOD
    2. INDUCTIVE METHOD

    1. Deductive method which is also called a priori reasoning starts from unchallenged elementary or rudimentary assumptions or facts and then arrives at conclusions. It builds a hypothesis or theory using logical analysis or their own analytical abilities. In this kind of reasoning, economists start from general to specific.
    Economists have different stages in deductive reasoning.
    They includes;
    Observation of task / issue; making the hypothesis; treating the hypothesis using more observation. This reasoning gives economists a hypothesis and if this hypothesis gets verified, they generate economic principles or laws.
    Moreover, deductive method is a simple method, it does not involve the use of any complex software analysis. It only required simple deductive logic.
    Again, deductive method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    2. Inductive method: inductive method is the type of reasoning that flows from fact to theory. In the first place, economists collect information and facts then move towards providing evidence using economic theory and facts.
    This method formulates principles using the sub-methods-observation, experimentations, and statistical methods. Data is collected about a particular economic theory and then conclusions are drawn.
    Stages in this Method Includes:
    Observation, formulation of a hypothesis, generalizing principles, and verifying against actual facts
    In addition, since inductive method is based on facts, it is more realistic and reliable.
    Again using statistical methods and experimentations makes the process more acceptable universally rather than just depending on your own reasoning and logic.
    Finally, since the economic environment is dynamic and always changing, relying open a more scientific method always help reach logical conclusions.

    Reply
  41. Avatar Izuchukwu Chidimma maryjane says:
    4 years ago

    NAME: IZUCHUKWU CHIDIMMA MARY JANE.
    REG NO: 21436506IA
    DEPT: SOCIAL SCIENCE ( EDUCATION AND ECONOMICS)

    Methods of Economic Analysis
    1. DEDUCTIVE METHOD: deductive also known as abstract or priori method which required abstract approach to the derivation of Economic generalisation and theories.The steps include
    A. Perception of the problem: the theorist must have the clear knowledge of the two variables he want derive his generalisation from.
    B. Define your postulates: finding the relationship between the two variables and why you think the two variables are related based on your own assumptions and observation.
    C. Hypothesis: predicting the possible factors that may affect the relationship between the two variables.
    D.Testing the hypothesis: verifying if the factors that are assumed to affect the relationship between the two variables are factual in nature before it is generally accepted.

    2. INDUCTIVE METHOD: inductive method also known as empirical method which requires collecting many observation on a particular data using statistical method to conclude whether it is consistent with actual fact or not.Generally It requires Econometric packages to run this method.

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  42. Avatar Edi Stanley kenechukwu says:
    4 years ago

    Name: Edi Kenechukwu Stanley
    Reg no: 20118506CF
    Dept: philosophy
    Assignment: what are the basic methods of analysis used by economists? Briefly and convincingly discuss each of them.

    ANSWER;
    The two basic method of economic analysis are namely; deductive and inductive methods of economic analysis.
    * Deductive Method:
    The deductive Method of economic analysis is a method which is analytical and abstract in its approach at arriving at a generalization, abstract in a way that mainly it works enough with logical reasoning, ideas and observations. For one to conduct a deductive analysis to derive an economic generalization, he/she has to honour these process, which are ; firstly, the economist should be able to significantly understand and identify the problem and it’s behavioural variables to work on and bring a solution to. Secondly, he or she has to make assumptions from a proper observation and also clearly define or breakdown the technical terms to be used, all to simplify the process of the analysis. Thirdly, the economist has to logically deduce hypothetical description from the assumptions made, the hypothesis could be description on relationships between factors affecting a phenomenon, however in the process of this logical deduction of hypothesis, one could be advised to use the mathematical means than the geometric means to avoid committing a logical fallacy. This is advices because mathematical means is more exact while geometric is complicated in it means and results.
    Then lastly is the testing or verification of the deduced hypothesis. In the verification of hypothesis to derive a generalization, it is understood that due to absence of controlled experiments like the physical scientists do, Economists have to rely on uncontrolled experiences, personally engage in an increased number of direct observation of real events, engage in a careful interpretation of facts and economic data gathered, gathering of comparatively unprocessed materials such as files of business firms, market and locally published reports, government departments and its like, to establish a generalization. However, a contemporary way or method of testing hypothesis has been devices and has proven very useful and meritorious because it makes it possible to obtain more precisely, the degree of relationship between economic variables. This modern method, is termed statistical it econometric method, but then this method must be preceded by logically developed theories before it could be used.

    * Inductive Method:
    The inductive Method has some similarities with deductive Method in its process of analysis and derivation of an economic generalization, but distinguishes it from deductive Method is its empirical or statistical method of testing data or information gathered. In the steps followed to analyze and develop theories through inductive means, just like deductive, firstly is to identify the problem, after which the economist is to define the technical terms and variables related to the problem.
    The next step is collection of data about variables and the possible functional relationship between relevant variables and this could be aided by preceded reasoning or thinking. After that is making or construction of a theory by evaluating and processing data collected and ascertaining how valid relationships between variables are. When theories has been constructed, prediction are to be made on its basis, when the predictions of the theory come in agreement with the facts and the behaviour of the economy, then a new theory is born, but if otherwise then a new theory with a better explanation has to take the place of the existing one, so to analyze and derive generalization or theories through inductive means, demands it requires number of observations, statistical collection and interpretation of data to achieve.
    In conclusion, both method are not competitive rather complimentary in the process of economy analysation and derivation of generalization and theories.

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  43. Avatar OKOAZE DANIEL CHINOSO says:
    4 years ago

    Name: OKOAZE DANIEL CHINOSO
    Reg no:21366202af
    Email:danielchinoso46@gmail.com

    METHOD OF ECONOMICS ANALYSIS
    1 DEDUCTIVE REASONING:Deductive reasoning is the process of drawing a conclusion based on premises that are generally assumed to be true. Also called “deductive logic,” this act uses a logical premise to reach a logical conclusion. Deductive reasoning is often referred to as “top-down reasoning.” If something is assumed to be true and another thing relates to the first assumption, then the original truth must also hold true for the second thing.

    E.g if a car’s trunk is large and a bike does not fit into the trunk, then you may assume the bike must also be large

    INDUCTIVE REASONING:Inductive reasoning is a method of logical thinking that combines observations with experiential information to reach a conclusion. When you can look at a specific set of data and form general conclusions based on existing knowledge from past experiences, you are using inductive reasoning.

    Example, if you review the population information of a city for the past 15 years, you may observe that the population has increased at a consistent rate. If you want to predict what the population will be in five years, you can use the evidence or information you have to make an estimate.

    Reply
  44. Avatar Ugwuoke Okwudilichukwu David says:
    4 years ago

    NAME: Ugwuoke Okwudilichukwu David
    Department: Philosophy
    Reg. No 20691721AF

    TWO WAY OF ECONOMIC ANALYSIS
    1.Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    (2) INDUCTIVE METHOD: This type of reasoning flows from fact you theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods observation,experimental, statisitical methods.

    Reply
  45. Avatar Okeke Juliet Kelechi says:
    4 years ago

    Okeke Juliet Kelechi
    21331434JA
    Economist dept.
    mhizjuliette24@gmail.com

    The basic method of economics analysis used by economists are mainly two which are:
    (a) Inductive method
    (b) Deductive method

    (a)Inductive method: it involves the process of reasoning from particular facts to forming a general principle i.e begins with particular observations and moves to general explanations. Inductive method process can be illustrated as thus :
    Observation of the issue——->Formulation of hypothesis——->Generalizing principles——–>Verifying principle against actual fact.

    (b)Deductive method: It involves the process of reasoning from general principles to a particular fact. It derives new conclusion from existing general theories/principles. Deductive method process can be illustrated as thus:
    Observe an existing theory——-> Formulate hypothesis based on existing theory——-> collect data to verify the hypothesis——-> analyse if the collected data supports the hypothesis.

    Reply
  46. Avatar OKPANI BLESSING says:
    4 years ago

    NAME: OKPANI BLESSING
    DEPARTMENT: ECONOMICS
    FACULTY: SOCIAL SCIENCES
    JAMB REG: 20032285CA
    MATRIC NO: 2020\242623

    THE METHODS OF ECONOMIC ANALYSIS USED BY ECONOMIST
    knowing that inductive and deductive methods are not just methods of economic analysis but are generalization in economics is going to help us understand that, they are the main economic method of analysis that economist use in their economic research.

    DEDUCTIVE METHOD
    This method is also called abstract, analytical prior method(knowledge that comes from the power of reasoning based on self evident truth) and represents an abstract approach to the derivation of economic generalization and theories. this method involves proper reasoning from one or more statements. for deductive method to be sound, the hypothesis must be correct.
    example: all men are mortals, Desmond is a man-[true]

    Principle steps in the process of deriving economic generalization through deductive logic are:

    A) Perception of the problem: this is not an easy step in the deductive method because if illusion and hallucination are possible, then perceptual experience, as we ordinarily understand it, is impossible. In any scientific inquiry, the analyst must have a clear idea of the problem to be inquired into. He must know the significant variables regarding whose behavior and interrelationship he wants to derive generalization. The perception of the problem is by no means an easy task.

    B)Definition of technical terms and making of assumptions( Postulates or premises): here the economist makes assumptions or suggests the existence, facts, or truth of the problem as basis of reasoning. Assumptions could be behavioral pertaining to the behavior of the economic variable or technological relating to the state of technology and the factor endowments.

    C) Deducing hypotheses through logical deduction: a hypothesis describes relationships between factors affecting a phenomenon; it establishes the cause and effect relationship between the variables having a bearing on the phenomenon.
    Then, through logical process, hypotheses is deduced from the assumptions made. this logical reasoning could be carried out verbally or it maybe conducted in symbolic terms using the language of what is known as symbolic logic.

    D) Testing or verification of hypotheses: hypotheses gotten must be tested or verified before they are established as principles of economics. For this verification, there are no controlled experiments, because economist have to discover uniformities in the behavioral patterns of man.

    INDUCTIVE METHOD
    This method could also be called empirical method. It derives economic generalization on the basis of experience and observations.In this method, detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalization which follows from the observations collected
    .

    Reply
  47. Avatar Nwaze Ugochukwu Kingsley, 2019/244923.... Pure and Industrial Chemistry says:
    4 years ago

    Below are the Answers….
    Deductive Method:
    In this method, We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific.
    The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.
    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Deductive And Inductive Methods

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method.
    It is a time-consuming process and thus expensive as well…

    Reply
  48. Avatar EZE SYLVIA IFEDIBA says:
    4 years ago

    NAME: EZE SYLVIA IFEDIBA.
    JAMB REGISTRATION NUMBER:20636892FA
    FACULTY:SOCIAL SCIENCE.
    DEPARTMENT: PHILOSOPHY.

    INDUCTIVE METHOD
    In this method data are collected with regard to certain economic phenomenon and effort is made to arrive at certain generalization on the basis of experience and observation.

    DEDUCTIVE METHOD
    Deductive method is also called abstract, analytical and a priori method represents an abstract approach to the derivation of economic generalizations and theories. It organizes the problem to be inquired into. It also defines the technical terms and makes good assumption which is often called postulates or premises.

    Reply
  49. Avatar Name: Ezeudu Chioma Blessing. Reg Number: 2019/247760 says:
    4 years ago

    Two Methods of Economic Analysis
    Economic Analysis is defined as the assessing or examining topics or issues from an economist’s perspective. Economic analysis is the study of economic systems.
    The analysis aims to determine how effectively the economy or something within it is operating. Economic analyses factor in the opportunity costs that people or companies employ. They measure, in monetary terms, what the benefits of a project are to the economy or community.
    The two methods include deductive analysis and inductive analysis
    1. Deductive Analysis
    It is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalisations and theories.
    The principal steps in the process of deriving economic generalisations through deductive logic are; Perception of the problem to be enquired into, defining precisely the technical terms and making appropriate assumptions, often called postulates or premises, deducing hypotheses, that is, deriving conclusions from the premises through the process of logical reasoning; and testing of hypothesis deduced.
    2. Inductive Analysis
    The inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.
    The Various Steps in Inductive Method
    a. Identifying the problem
    b. Data collection and some preliminary thinking
    c. Data processing to find out how they are related
    d. Make predictions and test them
    e. Predictions are in agreement with facts.

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  50. Avatar Osuchukwu Vivian Chiamaka says:
    4 years ago

    NAME: OSUCHUKWU VIVIAN CHIAMAKA
    REG NO: 21305622EF
    DEPT: ECONOMICS
    EMAIL: vivianosuchukwu@gmail.com

    There are two major methods used by economists in analysing Economic situations, they include:

    1. Deductive Method of Economic Analysis
    Deductive method is known as the analytical, abstract or priori method. It starts with certain formal data and assumptions. Then by logical reasoning certain conclusions are made. It is with these undisputed fundamental facts and after adding some assumptions that theories are arrived at. For instance, it is assumed that businessmen aim at achieving maximum profit. It follows from this that businessmen buy the materials at the cheapest market and sell it in the most costly market.

    In Deductive method of Economic Analysis we proceed from the general to the particular. This is also known as a hypothetical method because some of the assumptions may not correspond with actual facts, but very near actual facts are to be used as a premise for starting, reasoning and drawing conclusions.

    A complete form of deductive method consists of three stages,

    i. Observation ot perception of the problem;
    ii. Making assumptions from logical reasoning
    iii. Formulation of hypothesis, and
    iv. Testing the hypothesis
    Deductive reasoning provides us with hypotheses or generalizations. If the hypotheses are tested and verified with relevance to facts, they become valid economic laws.

    Advantages of Deductive Method of Economic Analysis

    1. Deductive method is exceedingly simple.

    2. Deductive method obviates the necessity of experimentation. Economics being a social science, experimentation may not be available as in the case of physics or chemistry. So, the next best alternative to experiment is deductive reasoning.

    3. The deductive method results in accuracy and exactness in generalization, because of logical reasoning. This method gives a high standard of precision in abstract economic reasoning.

    Disadvantages of Deductive Method of Economic Analysis
    Deductive method has its drawbacks also:
    1. Deduction is based mainly on assumptions which are perfectly valid but If assumptions are wrong, generalizations made on the basis of wrong assumptions will be imperfect and invalid.

    2. In deduction there is too much of abstraction and economists by means of their intellectual exercises produce only “intellectual toys” which have little connection with reality.

    3. Deductive generalizations started on wrong premises will be dangerous when such generalization claim universal validity. For instance, if such faulty generalizations are made use of in framing government policies, the results would be nothing but disastrous.

    Inductive Method of Economic Analysis
    In this method, economists proceed from a practical angle to problems of science to reduce the gap between theory and practice. Induction is done by two forms, viz. experimentation and statistical form. Facts are collected first, then arranged and conclusions are drawn. Then these general conclusions are further verified with reference to actual facts.

    The inductive method is generally associated with the statistical form of inductions. The statistical approach has a larger field in economic investigations than the method of experimentation. Further, the method of statistical induction is indispensable for the formulation of economic policy. Practically, Malthus presented his famous theory of population only after studying the facts of population in various countries; He then used statistics to support his theory. .

    Advantages of Inductive Method of Economic Analysis
    Inductive method has the following merits:

    1. It is highly practical and realistic as it describes things as they are.

    2. It is helpful in verifying the conclusions of the deductive method.

    Disadvantages of Inductive Method of Economic Analysis
    Inductive method has the following limitations:

    1. When the investigators lack a balanced judgement there is the risk of drawing hurried conclusions based on inadequate information or data.

    2. Collection of data in the inductive process is highly complex and time consuming.

    3. Only induction alone will not deliver unless it is complemented by means of deductive reasoning. Without deduction, the inductive method would result in producing only a mass of unrelated and unconnected facts.

    In conclusion, the two methods have to be made use of or combined to achieve the required objective. The two methods, deductive and inductive, are not competitive, but complementary in helping the investigator.

    Reply
  51. Avatar ONYEMA JANET NNEOMA says:
    4 years ago

    NAME: ONYEMA JANET NNEOMA
    REG NUMBER: 21313973GA
    MATRICULATION NUMBER: 2020/242640
    DEPARTMENT: ECONOMICS
    THE METHODS OF ECONOMIC ANALYSIS ARE:
    1. DEDUCTIVE METHOD
    The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods. It observes the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of facts, then references are drawn which are verified against facts. This is also known as hypothetical method for some of the assumptions may not correspond to actual facts.
    The principle steps in the process of deriving economic generalizations through deductive logic are:
    A.Perception of the problem to be inquired into;
    B. Defining precisely the technical terms and making appropriate assumptions, often called postulates or premises;
    C. Deducing hypotheses, that is, deriving conclusions from the premises through the process of logic reasoning; and
    D. Testing of hypothesis deduced
    2. INDUCTIVE METHOD
    The inductive method involves the process of reasoning from particular facts to general principles. In this method, data is collected about a certain economic phenomenon. These are systematically arranged and the general conclusions are drawn from them.. An example of inductive logic is “the coin i pulled from the bag is a penny…. therefore all coins in the bag are pennies”. Even if all the premises are true in a statement, inductive reasoning allows for the conclusion to be false.

    Reply
  52. Avatar Uzodigwe Isabel Chiemerie says:
    4 years ago

    Name: Uzodigwe Isabel Chiemerie
    Department: Nursing/Nursing sciences
    Regno.: 20636611ff
    Faculty: Health sciences and technology.
    The methods of economics analysis are: Deductive method and Inductive method.
    Deductive method: In this deductive method of economics analysis we proceed from the general to the particular.
    This is also known as an hypothetical method for some of the assumptions may not correspond to the actual facts but very near the actual facts which may be used as premise for starting reasoning and drawing conclusions. Deductive method involves reasoning and a few fundamental propositions.
    Inductive method: In this Inductive method of economics analysis, economists proceed from a practical angle to problems of science to reduce the difference between theory and practice. Induction is done by two forms:
    Experimental and Statistical form.
    In this method facts are collected first, arranged and conclusions are drawn.

    Reply
  53. Avatar Chibueze Okoh says:
    4 years ago

    NAME: Okoh Chibueze Joshua
    REG NUMBER:21468870EF
    DEPARTMENT: ECONOMICS
    COURSE CODE: ECO 101
    COURSE TITLE: PRINCIPLES OF ECONOMICS

    METHODS OF ECONOMIC ANALYSIS

    1. DEDUCTIVE METHOD: This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    1 Observation of a task/ issue
    2 Making the hypothesis
    3Testing the hypothesis using more observations, etc.

    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    2.INDUCTIVE METHOD: This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Reply
  54. Avatar UCHEAGA BLESSING CHISOM,2019/248163. says:
    4 years ago

    NAME:UCHEAGA BLESSING CHISOM
    DEPARTMENT:PURE AND INDUSTRIAL CHEMISTRY
    REG No:2019/248163
    FACULTY:PHYSICAL SCIENCE

    What are the basic methods of analysis used by Economists?

    The economic analysis involves the formulation of laws and generalizations through two methods namely:
    Deductive and Inductive.

    DEDUCTIVE METHOD
    This is method can also be referred to as a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we have to go from general to specific.
    The stages in deductive reasoning are:
    * Observation of a task/ issue
    * Making the hypothesis
    * Testing the hypothesis using more observations, etc.
    This reasoning actually gives us a hypothesis and if this hypothesis gets verified we will get a general economic principles or laws.
    Moreover just as every thing has an advantage and disadvantage, so also those this method.
    ADVANTAGES OF A DEDUCTIVE
    METHOD
    * It is a simple method, which doesn’t involve the use of any complex software analysis, etc.
    * only a simple deductive logic is required.
    * This method is really important for economists as it focuses upon economic reasoning which is of paramount importance.

    DISADVANTAGES OF AN DEDUCTIVE
    METHOD
    In this method of reasoning we have to start from assumptions, thus, if the assumptions happen to be logically flawed then the whole process becomes faulty and would lead to wrong conclusions.
    Thus, the logical fallacy is a disadvantage of this method.

    INDUCTIVE METHOD
    This kind of reasoning flows from facts to theory. First, we have to collect informations and facts and then move towards providing evidence using economic theory and facts.
    This method formulates principles using the sub-methods:
    *Observations
    *Experimentations
    *Statistical methods.

    Data is as well collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    * Observation
    * Formulation of a hypothesis
    * Generalizing principles
    * Verifying against actual facts.

    ADVANTAGES OF AN INDUCTIVE
    METHOD
    * Since this method is based on facts it is more realistic and reliable.
    * Using the statistical methods and experimentations makes the process more scientific, thus, it is more acceptable universally rather than just depending on your own reasoning and logic.
    * Since the economic environment is dynamic and always changing, relying upon a more scientific method will always helps in reaching logical conclusions.

    DISADVANTAGES OF AN INDUCTIVE
    METHOD
    * If the data that is been used is insufficient and faulty it would lead to faulty conclusions, thereby making the hypothesis less reliable.
    * It is a time-consuming process and thus really expensive as well.
    * The collection of all the data is not an easy job and it varies from person to person. As to how they collect the data.

    Reply
  55. Avatar Ezeata Raphael Anayochukwu,2019/244928 says:
    4 years ago

    Education Studies
    Research
    Current Research Projects
    Slippery Fish
    book group
    inductive or deductive approaches
    inductive or deductive approaches
    Approaches to data analysis are important in that they offer a theoretical orientation to practice. Three particular types of approach are often highlighted in the literature:

    Induction: this is the process by which we draw a general conclusion from individual instances or observations. The benefits of an inductive approach, as seen for example in grounded theory, are that it allows flexibility, attends closely to context and supports the generation of new theory [see the paper on social loss as example]. To its critics, however, inductive research painstakingly works from first principles when there is no overriding need to do so given there is already a huge amount of existing literature.

    Deduction: The deductive method seeks to draw valid conclusions from initial premises. It follows the logic of syllogy expressed in classical form as:

    Socrates is a man (major premise )


    All men are mortal (minor premise )

    Therefore Socrates is mortal (conclusion)

    Deduction as an approach to social research has had considerable appeal, and has been most clearly associated with a kind of classical and logical positivism. In its purest form deductive logic has been associated with the hypothetico-deductive approach. This involves generating formulating quite specific hypotheses about phenomena generally on the basis of existing practical and theoretical knowledge. The hypothesis is then tested under experimental conditions. If the data support the hypothesis then the hypothesis can be said to hold in this context; if not, then assuming that the research was well designed and carried out rigorously, the hypothesis, and the theory underlying the hypothesis, is challenged or at least the limits of the theory may have been reached.

    The hypothetico-deductive approach is most associated with ‘the scientific method’ but also underpins desk based research such as large N studies, meta analysis and systematic reviews. While powerful, deductive logic is criticised as misrepresenting the methods of natural science and, for that matter, makes an assumption that all disciplines in natural science work the same way when they do not. Second, it carries an inbuilt logic of confirmability; if you go looking for an association you are likely to find it. Third, it focuses on association between events but fails to provide the detailed analytical explanation which is a necessary part of establishing causality – this is why counter examples (such as the Conger and Donnellan, 2007 paper) are so important.

    Abduction: The claims made for an inductive or deductive approach are contested fiercely but there is increasing recognition that this might not be a choice between one or the other. Instead research can, and often does proceed, by taking an alternating inductive and deductive perspective – with observation leading to hypotheses which are then explored in relation to the data. In practice whatever their explicit particular stances on research and social theory, our interviewees show the flexibility associated with an abductive approach.

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  56. Avatar Omeje favour Chidinma. Reg no: 20750230GA says:
    4 years ago

    Economics analysis entails.the evaluation of cost benefits
    There are two main methods of Economic analysis
    – Deductive method this is called a priopri reasoning we start from unchallenged elementary assumptions or fact and then arrive on conclusion (build a hypothesis or theory) using logical analysis of self made analytical analysis.on this kind of reasoning we go from general to specific
    Stages include:
    *Observation of a task
    *Making hypothesis
    *Testing hypothesis using more observations
    If hypothesis get verified then it is now a certified general economic principle.
    Advantages:
    *It is a simple method thus doesn’t involve the use of complex software analysis
    *It is important for economist as it focuses on economics reasoning
    Disadvantages:
    Since the method starts from assumptions, if the assumption happens to be logically flawed the whole process will be faulty therefore give wrong conclusion

    Inductive method:
    This method flows from fact to theory. First, info and facts are collected which will move towards providing evidence using Economic facts and information.
    Stages include:
    *Observation
    *Formulation of hypothesis
    *Generalizing principles
    *Verifying against actual facts
    Advantages:
    *Since it is based on facts it is more reliable and realistic
    *Making use of experimentation makes the process more scientific this it’s more acceptable generally
    Disadvantages:
    *If data used is insufficient and faulty it will lead to wrong conclusion
    *It’s time consuming and expensive

    Reply
  57. Avatar EKEH CHIZOBA SUCCESS says:
    4 years ago

    Name: EKEH CHIZOBA SUCCESS.
    JAMB REG NO:20682951GA.
    DEPARTMENT: PHILOSOPHY.
    METHODS OF ECONOMIC ANALYSIS:
    Economic analysis involve two methods:
    (1) DEDUCTIVE METHOD AND
    (2) INDUCTIVE METHOD.

    (1) DEDUCTIVE METHOD/ REASONING: Works from the more general to the more specific. It involves reasoning from a fundamental propositions, the truth of which is assumed.

    For instance: When conducting deductive research, you always start with a theory ( the result of inductive research). Reasoning deductive means testing these theories. If there is no theory, you cannot conduct deductive reasearch.
    The conclusion of deductive method can only be true , if all the premises set to study are true and the terms are clear.
    Example:
    _ All dogs have fleas (premise)
    _ Benno is a dog (premise)
    _ Benno has fleas ( conclusion)

    Based on the premises we have , the conclusion must be true. However, if the first premise turns out to be false, the conclusion that “Benno” has fleas cannot be relied upon.

    (2) INDUCTIVE METHOD: Involves moving from specific observations to broader generalization and theories. It also involven collection of facts, datas drawing conclusions from them and testing the conclusions by other facts.
    For instance: We make observations, discern a pattern, make a generalization and infer an explanation or a theory.
    Example: Is the formulation of the generalization of diminishing returns.

    Reply
  58. Avatar Ugwu Peter Nnamdi . Reg number 2019/243339. Dept: Pure and industrial chemistry says:
    4 years ago

    Economic analysis involves various methods. The basic methods of economic analysis are
    1. deductive method and
    2. Inductive method
    Both methods uses generalization and theory
    1. DEDUCTIVE METHOD
    Also called analytical or prior method.It involves deriving conclusions from known accepted truth, takes them and applies them to draw conclusion
    For instance,if I accept the general proposition that Nigerians are lawless.I can deductively infere that we are uncivilized. Deductive method moves from general to particular, conclusion of your inference cannot be false given that the premises are true.
    Generalization Steps of deductive method.

    1. Perception of of the problem- a clear and precise idea of problem is needed
    2. Precisely find the technical terms,define them and make assumptions
    3. Deduce hypothesis– from the assumptions, made, hypothesis are deduced.The hypothesis could be null or unnull hypothesis
    4. Test the hypothesis- before theory are established, hypothesis are verified through direct observation and statistical methods
    MERITS OF DEDUCTIVE METHOD.
    1. Less time consuming and near to reality
    2. Less expensive
    3. It’s simple because it’s analytical
    4. It can be used to derive economic theories
    DEMERITS.
    1.The method is not applicable universally
    2. It’s highly abstract,requires alot of care to avoid faulty economic reasoning
    The imperfect nature of this method led classic and neo classic economists to employe inductive method.
    2. INDUCTIVE METHOD
    Also called empirical method, and was adopted by Historical School of Economists in a bid to improve faulty assumptions of deductive method.It derives generalization on the basics of experiments, observation and statistical methods.
    For example, observation of UNN students during rainy season show that 90% go with umbrella,6%wear rain coat despite it’s high cost,4%go without umbrella or rain coat.
    From above,we see that UNN students uses umbrella during rainy season unless they are devoid of sense
    A

    Reply
  59. Avatar Igbokwe Gloria somtoochukwu says:
    4 years ago

    Igbokwe Gloria somtoochukwu
    20690485BA
    Economics department
    igbokwegloria2003@gmail.com

    There’s re two types of Economics analysis
    1. Deductive method: in this method of economics analysis which proceed from the general to the particular. This is also known as an hypothetical method, for some assumptions may not correspond to actual facts, but very near , which may be be used as premise from starting, reasoning and drawing conclusion. it is also known as analytical abstract a priori method.
    it consists of ;
    observation,
    deductive reasoning
    and instance and testing by means of further observation.
    This method provides us with hypothesis which re tested and verified with relevance to facts, we have as Valid economics laws.

    2 . INDUCTIVE METHOD: This method aims at developing a theory unlike deductive method aims at testing an existing theory. Inductive method moves from specific observations to broad generalizations and deductive reasoning and other way around. it is a type of method that involves drawing a general conclusion from a set of specific observations.

    Reply
  60. Avatar Judith Chinaza Kamanu says:
    4 years ago

    Name:Kamanu Judith Chinaza
    Department : Business Education
    Faculty: Vocational and Technical Education
    Reg number :21676944CA
    Course: Eco 101

    There are two basic methods of economic analysis are :
    1) Deductive method
    2) Inductive method

    DEDUCTIVE METHOD
    This is also called abstract, analytical and priori method that represents an abstract approach to derivation of economic generalization and theories.
    The ways of generalizations are:
    1. Perception of the problem to be enquired into
    2. Defining precisely the technical terms and making appropriate assumptions often called Postulate or premises.
    3.Deducing hypothesis that is deriving conclusions from the premises through the process of logical reasoning.
    4. Testing of the hypothesis deduced.
    This method is near to reality, it is less consuming and expensive.it is also simple because it is analytical. It’s disadvantages are that it is highly abstract, the premise where inferences are drawn may not hold.

    INDUCTIVE METHOD
    it is also called emperical method. It’s process of reasoning from practical facts to general principles. This method derives economic generalization on the basis in experimentations, observations and statistical method. Data collected is mostly about a certain economic phenomenon.
    STEPS
    Observations
    Formation of hypothesis
    Generalization
    Verification
    This method is based on facts;it is realistic
    It makes statistical techniques easy therefore its more reliable.
    It is dynamic
    It also helps in future investigations
    But it’s disvadvantages are
    Generalizations obtained may be faulty if conclusions are drawn from insufficient data.
    * collection of data isn’t easy.
    It is time consuming and expensive.

    Reply
  61. Avatar UCHEAGA BLESSING CHISOM,2019/248163. says:
    4 years ago

    What are the basic methods of analysis used by Economists?

    The economic analysis involves the formulation of laws and generalizations through two methods namely:
    Deductive and Inductive.

    DEDUCTIVE METHOD
    This is method can also be referred to as a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we have to go from general to specific.
    The stages in deductive reasoning are:
    * Observation of a task/ issue
    * Making the hypothesis
    * Testing the hypothesis using more observations, etc.
    This reasoning actually gives us a hypothesis and if this hypothesis gets verified we will get a general economic principles or laws.
    Moreover just as every thing has an advantage and disadvantage, so also those this method.
    ADVANTAGES OF A DEDUCTIVE
    METHOD
    * It is a simple method, which doesn’t involve the use of any complex software analysis, etc.
    * only a simple deductive logic is required.
    * This method is really important for economists as it focuses upon economic reasoning which is of paramount importance.

    DISADVANTAGES OF AN DEDUCTIVE
    METHOD
    In this method of reasoning we have to start from assumptions, thus, if the assumptions happen to be logically flawed then the whole process becomes faulty and would lead to wrong conclusions.
    Thus, the logical fallacy is a disadvantage of this method.

    INDUCTIVE METHOD
    This kind of reasoning flows from facts to theory. First, we have to collect informations and facts and then move towards providing evidence using economic theory and facts.
    This method formulates principles using the sub-methods:
    *Observations
    *Experimentations
    *Statistical methods.

    Data is as well collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    * Observation
    * Formulation of a hypothesis
    * Generalizing principles
    * Verifying against actual facts.

    ADVANTAGES OF AN INDUCTIVE
    METHOD
    * Since this method is based on facts it is more realistic and reliable.
    * Using the statistical methods and experimentations makes the process more scientific, thus, it is more acceptable universally rather than just depending on your own reasoning and logic.
    * Since the economic environment is dynamic and always changing, relying upon a more scientific method will always helps in reaching logical conclusions.

    DISADVANTAGES OF AN INDUCTIVE
    METHOD
    * If the data that is been used is insufficient and faulty it would lead to faulty conclusions, thereby making the hypothesis less reliable.
    * It is a time-consuming process and thus really expensive as well.
    * The collection of all the data is not an easy job and it varies from person to person. As to how they collect the data.

    Reply
  62. Avatar Umeh success precious says:
    4 years ago

    Methods of Economic Analysis,.
    1Deductive method,also know as abstract or priori method which required abstract approach to the derivation of Economic generalisation and theories.It implies perception of the problem which means having clear knowledge of the two variables that you want to derive your generalisation from.Also,defining your postulate which requires finding the relationship between the two variables and why you think the two variables are related based on your own observation which makes you think so.There also is hypothesis which requires predicting the possible factors that may affect the relationship between the two variables.Testing the hypothesis, verifying if the factors that are assumed to affect the relationship between two variables are factual in nature before it is generally accepted.
    2.lnductive method also know as empirical method requires collecting many observation on a particular data for using statistical methods to analysis whether is consistent with actual facts or not.

    Reply
  63. Avatar Ezeata Raphael Anayochukwu,2019/244928 says:
    4 years ago

    In logic, we often refer to the two broad methods of reasoning as the deductive and inductive approaches.

    Deductive reasoning works from the more general to the more specific. Sometimes this is informally called a “top-down” approach. We might begin with thinking up a theory about our topic of interest. We then narrow that down into more specific hypotheses that we can test. We narrow down even further when we collect observations to address the hypotheses. This ultimately leads us to be able to test the hypotheses with specific data – a confirmation (or not) of our original theories.

    Inductive reasoning works the other way, moving from specific observations to broader generalizations and theories. Informally, we sometimes call this a “bottom up” approach (please note that it’s “bottom up” and not “bottoms up” which is the kind of thing the bartender says to customers when he’s trying to close for the night!). In inductive reasoning, we begin with specific observations and measures, begin to detect patterns and regularities, formulate some tentative hypotheses that we can explore, and finally end up developing some general conclusions or theories.

    These two methods of reasoning have a very different “feel” to them when you’re conducting research. Inductive reasoning, by its very nature, is more open-ended and exploratory, especially at the beginning. Deductive reasoning is more narrow in nature and is concerned with testing or confirming hypotheses. Even though a particular study may look like it’s purely deductive (e.g., an experiment designed to test the hypothesized effects of some treatment on some outcome), most social research involves both inductive and deductive reasoning processes at some time in the project. In fact, it doesn’t take a rocket scientist to see that we could assemble the two graphs above into a single circular one that continually cycles from theories down to observations and back up again to theories. Even in the most constrained experiment, the researchers may observe patterns in the data that lead them to develop new theories

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  64. Avatar Okoro SANDRA Adaugo says:
    4 years ago

    NAME: OKORO SANDRA ADAUGO

    REG NO: 2019/248481

    EMAIL: adaugosandra2019@gmail.com

    Economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.

    Deductive method is also known as abstract method or analytical method. This method is based on a priori reasoning and conclusions are drawn from certain fundamental assumptions
    The deductive method moves from the general assumption to the specific application.

    STEPS OF DEDUCTIVE METHOD:
    The steps in deductive reasoning are:
    i) Observation of a task/ issue
    ii)Making the hypothesis
    iii) Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    ADVANTAGES OF DEDUCTIVE METHOD

    The deductive method is a simple method, because it doesn’t involve the use of any complex software analysis only simple deductive logic is required.
    It is also real, powerful, exact, indispensable and universal.
    This method is important for economists as it focuses on economic reasoning which is of utmost importance.

    DISADVANTAGES OF DEDUCTIVE METHOD
    In this method of reasoning we start from assumptions, meaning that if the assumptions happen to be logically flawed or unrealistic the whole process becomes faulty and would give misleading conclusions. Thus, logical fallacy is a disadvantage of this method.
    The deductive method is also not applicable universally because the premises from which they are deduced may not hold good at all time and places.

    INDUCTIVE METHOD

    The inductive method is also called the empirical method, it involves the process of reasoning from particular facts to general principle
    First, we collect information and facts and then move towards providing evidence using economic theory and facts.
    The inductive method moves from specific observations to generalization.

    STEPS OF INDUCTIVE METHOD:
    The main steps involved in the application of inductive method are:
    (i) Observation
    (ii) Formulation of hypothesis.
    (iii) Generalizing principles
    (iv) Verifying against actual facts.

    ADVANTAGES OF INDUCTIVE METHOD
    (i) It is based on facts as such the method is realistic.

    (ii) Induction method also helps in future investigations.

    (iii) Inductive method is dynamic. The changing economic phenomenon are analyzed and on the basis of collected data, conclusions and solutions are drawn from them.

    (iv) In order to test the economic principles, method makes statistical techniques. The inductive method is, therefore, more reliable.

    DISADVANTAGES OF INDUCTIVE METHOD:
    The main weaknesses of this method are as under:
    (i) The inductive method is time-consuming and expensive.

    (ii) The collection of data itself is not an easy task. The sources and methods employed in the collection of data differ from investigator to investigator. The results, therefore, may differ even with the same problem.

    (iii) If conclusions drawn from insufficient data, the generalizations obtained may be faulty

    Reply
  65. Avatar ONYEUKWU MADUKA WILSON (2019/242360) (PURE AND INDUSTRIAL CHEMISTRY) says:
    4 years ago

    Methods of Economic Analysis:
     
There are two methods of economic analysis. They are:(1) Deductive Method and (2) Inductive Method.
     
     
    (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.
     
     
    Steps of Deductive Method:
     
    The main steps involved in deductive logic are :
     
    (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).
     
    Merits of Deductive Method:
    
The main merits of deductive method are as under:
     
    (i) This method is near to reality. It is less time consuming and less expensive.
     
    (ii) The use of mathematical techniques in deducing theories of economics brings exactness and clarity in economic analysis.
     
    (iii) There being limited scope of experimentation, the method helps in deriving economic theories.
     
    (iv) The method is simple because it is analytical.
     
    Demerits of Deductive Method:
     
    It is true that deductive method is simple and precise, underlying assumptions are valid.
     
    (i) The deductive method is simple and precise only if the underlying assumptions are valid. More often the assumptions turn out to be based on half truths or have no relation to reality. The conclusions drawn from such assumptions will, therefore, be misleading.
     
    (ii) Professor Learner describes the deductive method as ‘armchair’ analysis. According to him, the premises from which inferences are drawn may not 
hold good at all times, and places. As such deductive reasoning is not applicable universally.
     
    (iii) The deductive method is highly abstract. It require; a great deal of care to avoid bad logic or faulty economic reasoning.
    
As the deductive method employed by the classical and neo-classical economists led to many facile conclusions due to reliance on imperfect and incorrect assumptions, therefore, under the German Historical School of economists, a sharp reaction began against this method. They advocated a more realistic method for economic analysis known as inductive method.
     
    (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) Experimentations (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 300 persons in the market. We find that nearly 295 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.
     
    Merits of Inductive Method:
     
    (i) It is based on facts as such the method is realistic.
     
    (ii) In order to test the economic principles, method makes statistical techniques. The inductive method is, therefore, more reliable.
     
    (iii) Inductive method is dynamic. The changing economic phenomenon are analyzed and on the basis of collected data, conclusions and solutions are drawn from them.
     
    (iv) Induction method also helps in future investigations.
     
    Demerits of Inductive Method:
     
    The main weaknesses of this method are as under:
     
    (i) If conclusions drawn from insufficient data, the generalizations obtained may be faulty.
     
    (ii) The collection of data itself is not an easy task. The sources and methods employed in the collection of data differ from investigator to investigator. The results, therefore, may differ even with the same problem.
     
    (iii) The inductive method is time-consuming and expensive.
     
    Conclusion:
     
    The above analysis reveals that both the methods have weaknesses. We cannot rely exclusively on any one of them. Modern economists are of the view that both these methods are complimentary. They partners and not rivals. Alfred Marshall has rightly remarked:
     
    “Inductive and Deductive methods are both needed for scientific thought, as the right and left foot are both needed for walking”.
     
    We can apply any of them or both as the situation demands.

    Reply
  66. Avatar Iyida Samson Obumneme, rang number 2019/243306 says:
    4 years ago

    The method used by economist in reasoning are inductive and deductive reasoning is that inductive reasoning aims at developing a theory while deductive reasoning aims at testing an existing theory. Inductive reasoning moves from specific observations to broad generalizations, and deductive reasoning the other way around.
    18 Apr 2019

    Reply
  67. Avatar Ezeme Lilian ifeoma says:
    4 years ago

    Name:Ezeme Lilian ifeoma
    Department: Economics
    Reg no:20689942gf
    The method of Economics analysis are:
    A. Inductive method
    B. Deductive method
    Inductive method :This is a theory based on data obtained from actual experience . Basically,in induction method ,it is done in two forms: Experimental and stastistical form.In this form facts are collected first,arranged and conclusions are drawn.Then these general conclusion are further verified with reference to actual facts.The induction method is generally associated with the stastical form of induction. It has larger field in Economic investigation than the method of Experimentation
    Deductive method:This is the scientific approach based on logical reasoning from formal data and assumption. Then by logical reasoning,we arrive at certain conclusions. The conclusions is drawn from general to the particular which is known as hypothetical method . The argument in this hypothetical method is that some of the assumptions may not correspond to the actual facts but very near to actual facts. It is also called abstract Analytical and prior method

    Reply
  68. Avatar Igwedibia Judith Chiamaka says:
    4 years ago

    NAME: IGWEDIBIA JUDITH CHIAMAKA
    MATRIC NO: 2019/246689
    DEPT: PURE AND INDUSTRIAL CHEMISTRY
    EMAIL: igwedibiajudith@gmail.com
    Basic Methods of Analysis used by Economists

    (1) Deductive Method
    (2) Inductive Method.

    (1) Deductive Method of Economic Analysis:
    The deductive method is also known as analytical, abstract or prior method.
    Steps of Deductive Method:
    The main steps involved in deductive logic are as follows:
    (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).
    Merits of Deductive Method:
    The main merits of deductive method are as follows:
    i. It is less time consuming and less expensive.
    (iv) The method is simple because it is analytical.
    Demerits of Deductive Method:
    i. The deductive method is highly abstract. It require; a great deal of care to avoid bad logic or faulty economic reasoning.

    (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.
    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.
    Merits of Inductive Method:
    (i) It is based on facts as such the method is realistic.
    (ii) In order to test the economic principles, method makes statistical techniques. The inductive method is, therefore, more reliable.
    Demerits of Inductive Method:
    The main weaknesses of this method are as under:
    (i) If conclusions drawn from insufficient data, the generalizations obtained may be faulty.
    (iii) The inductive method is time-consuming and expensive.

    Reply
  69. Avatar Kalu Violet Oluchukwu 2019/241301 says:
    4 years ago

    Department of Pure and Industrial Chemistry
    The basic methods of analysis used by Economists are; The Inductive reasoning and The Deductive reasoning.
    The deductive method: This is also called a priori reasoning with the process of making unchallenged elementary assumptions/fact to building a hypothesis or theory using logical analysis or our own abilities. Here, we go from general to specific. This method is of advantage in the sense that it does not involve the use of any complex software analysis , hence it is simple and it is of disadvantage that since the method starts from assumptions, thus, if the assumptions happen to be logically flared the whole process becomes faulty and would give wrong conclusion.
    The Inductive method: Here, reasoning flows from facts to theory . First, we collect information and facts and then move towards providing evidence using economic theory and facts This method formulates principles using the sub-methods observation, experimentations, statistical methods. Data is collected about a particular economic theory and then conclusions are drawn. This method too is of advantage that it is more realistic and reliable since it is based on facts and not just assumptions and since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusion. The Bad thing or the disadvantage about this method is that if the data used is insufficient it results to faulty conclusions making the hypothesis less reliable, it’s a time consuming process and this very expensive.

    Reply
  70. Avatar Nwazuba Geraldine Mmesoma says:
    4 years ago

    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive
    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Deductive And Inductive Methods

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  71. Avatar MICHAEL NKECHINYERE AGATHA says:
    4 years ago

    MICHAEL NKECHINYERE AGATHA
    REG. NO.: 2019/SD/37705
    QUESTIONS
    1) What are the difference between macroeconomic and microeconomics?
    2) Discuss the three different ways of computing GDP.
    3) Without diagrams, clearly discuss the circular flow of income and product in a 2 – sector economy, 3 – sector economy and 4 – sector economy.

    Micro-economics refers to the branch of economics which deals with smaller units or components of the economics. It is concerned with the analysis of basic decision making components of households, individuals, firma and governments. It relates to cost, output, production, pricing and marketing activities of households, firms and governments. Microeconomics focuses on firms and individuals.
    Macro-economics refers to the branch of economics which deals with larger units or aggregate of the economy. Macro-economic relates to large aggregates such as national income; inflation, unemployment, balance of payment etc. Macro economics focuses on the sum total of economics activity, dealing with the issues of growth, inflation and unemployment.
     
    Differences between Micro-Economics and Macro-Economics
    S/N Micro-Economics Macro-Economics
    1 involves supply and demand in individual markets monetary/fiscal policy. e.g. what effect does interest rates have on the whole economy.
    2 involves individual consumer behaviour e.g. consumer choice theory reasons for inflation and unemployment.
    3 individual labour markets e.g. demand for labour wage determination economic growth
    4 externalities arising from production and consumption e.g. externalities international trade and globalisation

    Formula to Calculate G.D.P
    GDP is Gross Domestic product and is indicator to measure the economic health of a country. The formular to calculate GDP is of three types which include:
     Expenditure Approach;
     Income approach, and
     production approach
    Expenditure Approach: There are three main groups of expenditure household, business and government. By adding all expenses, we get below equation.
    GDP = C + I + G + NX
    Where
    C = All private consumption/consumer spending in the economy. It includes durable goods, nondurable goods and services
    I = All of a country’s investment in capital equipment, housing etc.
    G = All of the country’s government spending. It includes the salaries of a government employee, construction, maintenance, etc.
    NX = Net country export – Net country import.
    This can also be written as:
    GDP = Consumption + Investment + government spending + Net export
    Income Approach: The income approach is a way for calculation of GDP by total income generated by goods and services.
    GDP = Total National Income + sales taxes + Depreciation + Net foreign factor income.
    Where – Total national income = sum of rent, salaries profit.
    Sales Taxes – Tax. Imposed by a government on sales of goods and services.
    Depreciation – The decrease in the value of an asset.
    Net foreign factor income – Income earn by a foreign factor like the amount of foreign company or foreign person earn from the country and it is also the difference between a country citizen and country earn.

    Production or Value Added Approach:
    From the name, it is clear that value is added at the time of production. It is also known as the reverse of the expenditure approach. To estimate the gross value – added total cost of economic output is reduced by the cost of intermediate goods that are used for the production of the facial goods.
    Gross value added = Gross value of output – value of intermediate consumption.
    GDP Formular
    Expenditure Approach = C + I + G + NX
    Income Approach = Total National Income + Sales taxes + Depreciation + Net foreign factor income.
    Value Added Approach = Grosses value of output – Value of intermediate consumption.
    CIRCULAR INCOME FLOW IN A TWO SECTOR ECONOMY
    Real flow of resources, goods and services such as land, capital and entrepreneurial ability flow from households to business firms. Money flow from business firms to the households as factor payments such as wages, rent, interest and profits.
    Money flows from households to firms as consumption expenditure made by the households on the goods and services produced by the firms, while the flow of goods and services is in opposite direction from business firms to households.
    IN THREE SECTOR ECONOMY WITH GOVERNMENT
    Government affects the economy in a number of ways, such as its taxing, spending and borrowing roles. Government purchase goods and services just as households and firms do. Government expenditure takes many forms including spending on capital goods and infrastructure (highways, power, communication), on defence goods, and on education and public health etc. These add to the money flows. Government expenditure may be financed through taxes, out of assets or by borrowing. The money flow households and business firms to the government. This money flow includes all the tax payments made by households less transfer payments received from the government. Transfer payments are treated as negative tax payment.
    INCOME FLOWS IN FOUR SECTOR OPEN ECONOMY ADDING FOREIGN SECTOR
    This includes the foreign sector which reveals to us the transaction of the domestic economy with foreign countries. Foreigners interact with the domestic firms and households through exports and imports of goods and services as well as through borrowing and lending operations through financial market.
    CIRCULAR FLOW OF PRODUCT
    Product flow is the distribution channel that is viewed as a unified system of interdependent organizations which intermediaries work together to build values as products proceed through the channel to the consumer. It includes movement of goods from supplier to consumer (internal as well as external), as well as dealing with customer service needs such as input materials or consumables or services like housekeeping.

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  72. Avatar Samuel Favour Udochukwu says:
    4 years ago

    Name: Samuel Favour Udochukwu
    Reg num: 22000131df
    Dept: Public Administration and Local Government
    Faculty: Social Science

    Methods of Economic Analysis

    1. Deductive Method= The deductive method can also be called abstract method. There are principle steps in which we can derive economic generalizations through deductive method.
    a) Perception of the problem. In any scientific inquiry, the analyst must have a clear idea of the problem he wants to solve.
    b) He must define precisely the various technical terms to be used in the analysis.
    c) Deducing hypothesis through logical deduction. A hypothesis describes relationship between factors affecting a phenomenon.
    d) Hypothesis gotten above have to be verified before the are established as principles of economics.
    2. Inductive Method= The inductive method is also called “Empirical method”. It obtains economic generalizations on the basis of experience and observations. In this method, detailed data are gathered with regard to a particular economic term. Effort is now made to get at certain generalizations which follow from observations collected. Empirical studies made in inductive approach also brings a light significant economic facts which require analytical explanation through deductive logic.

    Reply
  73. Avatar Ifeabunike Onyinye Jacinta (2019/244764 says:
    4 years ago

    NAME: IFEABUNIKE ONYINYE JACINTA
    REG NO: 2019/244764
    FACULTY: PHYSICAL SCIENCES
    DEPT: PURE AND INDUSTRIAL CHEMISTRY
    ANSWERS: There are two basic methods of economic analysis which are:
    1. The deductive method
    2. The Inductive method

    -DEDUCTIVE METHOD OF ECONOMIC ANALYSIS: The deductive method is also known as the analytical, abstract or prior method. It involves deriving conclusions from general truths, taking few general principles and applies them in drawing 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.

    STEPS INVOLVED IN DEDUCTIVE METHOD:
    (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) Definition 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
    (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.

    -INDUCTIVE METHOD OF ECONOMIC ANALYSIS: This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. Here data is collected about a particular economic theory and then conclusions are drawn.
    STAGES INVOLVED IN THIS METHOD ARE:
    i. Observation
    ii. Formulation of a hypothesis
    iii. Generalizing principles
    iv. Verifying against actual facts.

    ADVANTAGES OF THE INDUCTIVE METHOD
    i.It is based on facts therefore more realistic and reliable.
    ii. Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    iii. Since the economic environment is dynamic, relying upon a more scientific method always helps reach logical conclusions.

    DISADVANTAGES OF THE INDUCTIVE METHOD
    i. Insufficient data leads to faulty conclusions, making the hypothesis less reliable.
    ii. It is a time-consuming process and expensive as well.
    iii.Data collected often varies from person to person.

    Reply
  74. Avatar Chukwu Ifeoma Rita says:
    4 years ago

    NAME: CHUKWU IFEOMA RITA

    REG. NO: 2019/241539

    EMAIL: chukwuifeomaa@gmail.com

    Methods Of Economic Analysis.

    There are two basic methods of analysis used by Economists

    -Deductive Method
    -Inductive Method

    Deductive Method.
    This is also called analytical or a prior method.
    Deductive Method consists in deriving conclusions from general truths, takes few general principles and applies them in drawing conclusions

    Steps of Deductive Method
    (I) Perception Of The Problem To Be Inquired Into:
    The first step involved in deductive method of economic analysis, the analyst must have an exact and comprehensible idea of the problem to be inquired into

    (II) Defining Of Terms:
    In this step, you need to clearly define the technical terms used in the analysis

    (III) Deducing Hypothesis from the assumptions:
    Here, you need to draw conclusion on the hypothesis from the assumptions

    (IV) Testing Of Hypothesis:
    On the process of establishing laws, hypothesis must first be tested

    ADVANTAGES.
    ➜The deductive method is less expensive and less time consuming
    ➜This method is simple because it is analytical
    ➜This method also helps in deriving economic theories

    DISADVANTAGES.
    ➜The method is highly abstract; it requires a good deal of care to avoid bad logic or faulty economic reasoning
    ➜The premises from which inferences are drawn may not hold good at all times and places.
    ➜The deductive method is simple and precise only when the assumptions are valid.

    Inductive Method.
    This is also called empirical method. It involves the process of reasoning from particular facts to general principle

    Steps Of Inductive Method
    (I) Observation
    (II) Formation Of Hypothesis
    (III) Generalization
    (IV) Verification

    ADVANTAGES.
    ➜Inductive method also helps in future investigation
    ➜It is based on facts as such, the method is realistic.
    ➜This method is reliable and it makes statistical techniques

    DISADVANTAGES
    ➜The inductive method is time consuming and expensive.
    ➜The generalization may be faulty only if the conclusions are drawn from insufficient data.
    ➜The sources and methods employed in the collection of data differ from investigator to investigator. Therefore, the results may differ even with the same problem

    Reply
  75. Avatar ONYEUKWU MADUKA WILSON 2019/242360 says:
    4 years ago

    Methods of Economic Analysis:
     
There are two methods of economic analysis. They are:(1) Deductive Method and (2) Inductive Method.
     
     
    (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.
     
     
    Steps of Deductive Method:
     
    The main steps involved in deductive logic are :
     
    (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).
     
    Merits of Deductive Method:
    
The main merits of deductive method are as under:
     
    (i) This method is near to reality. It is less time consuming and less expensive.
     
    (ii) The use of mathematical techniques in deducing theories of economics brings exactness and clarity in economic analysis.
     
    (iii) There being limited scope of experimentation, the method helps in deriving economic theories.
     
    (iv) The method is simple because it is analytical.
     
    Demerits of Deductive Method:
     
    It is true that deductive method is simple and precise, underlying assumptions are valid.
     
    (i) The deductive method is simple and precise only if the underlying assumptions are valid. More often the assumptions turn out to be based on half truths or have no relation to reality. The conclusions drawn from such assumptions will, therefore, be misleading.
     
    (ii) Professor Learner describes the deductive method as ‘armchair’ analysis. According to him, the premises from which inferences are drawn may not 
hold good at all times, and places. As such deductive reasoning is not applicable universally.
     
    (iii) The deductive method is highly abstract. It require; a great deal of care to avoid bad logic or faulty economic reasoning.
    
As the deductive method employed by the classical and neo-classical economists led to many facile conclusions due to reliance on imperfect and incorrect assumptions, therefore, under the German Historical School of economists, a sharp reaction began against this method. They advocated a more realistic method for economic analysis known as inductive method.
     
    (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) Experimentations (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 300 persons in the market. We find that nearly 295 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.
     
    Merits of Inductive Method:
     
    (i) It is based on facts as such the method is realistic.
     
    (ii) In order to test the economic principles, method makes statistical techniques. The inductive method is, therefore, more reliable.
     
    (iii) Inductive method is dynamic. The changing economic phenomenon are analyzed and on the basis of collected data, conclusions and solutions are drawn from them.
     
    (iv) Induction method also helps in future investigations.
     
    Demerits of Inductive Method:
     
    The main weaknesses of this method are as under:
     
    (i) If conclusions drawn from insufficient data, the generalizations obtained may be faulty.
     
    (ii) The collection of data itself is not an easy task. The sources and methods employed in the collection of data differ from investigator to investigator. The results, therefore, may differ even with the same problem.
     
    (iii) The inductive method is time-consuming and expensive.
     
    Conclusion:
     
    The above analysis reveals that both the methods have weaknesses. We cannot rely exclusively on any one of them. Modern economists are of the view that both these methods are complimentary. They partners and not rivals. Alfred Marshall has rightly remarked:
     
    “Inductive and Deductive methods are both needed for scientific thought, as the right and left foot are both needed for walking”.
     
    We can apply any of them or both as the situation demands.

    Reply
  76. Avatar Iyida Samson Obumneme says:
    4 years ago

    The economist uses two method in analysis used and they are inductive and deductive method reasoning is that inductive reasoning aims at developing a theory while deductive reasoning aims at testing an existing theory. Inductive reasoning moves from specific observations to broad generalizations, and deductive reasoning the other way around.

    Reply
  77. Avatar Ugwunweze Robinson Ndubuisi says:
    4 years ago

    NAME:Ugwunweze Robinson Ndubuisi

    MATRIC NO: 2020/243243

    DEPARTMENT: public Administration And local Government

    Economic deals with the study of how the goods and services that we want for our consumption are get produced and how they are distributed among people.

    INDUCTIVE reasoning takes a specific representative case or fact and then, draws generalization or conclusion from them.
    Inductive reasoning must be based on a sufficient amount of reliable evidence, in other words the facts you draw in must fairly represent the larger station or population .
    Example;

    (a) Fair trade agreements have raised the quality of life for coffee producers, so
    (b) Fair trade agreements could be used to help other farmers as well.
    In this example the specific case of fair trade agreements with coffee producers us being used as the starting point for the claim because these agreements have worked the author conclude that it could work for other farmer as well.

    DEDUCTIVE reasoning begins with a generalization and then applies it to a specific case. The generalizatio you start will must have been based on a sufficient amount of evidence. Example,

    Genetically modified seeds have caused poverty hunger, and a decline in bio-diversity everywhere there have been introduced, so there is no reason the same thing will not occur which genetically modified corn seeds are introduced in Mexico.
    In this example the author starts with a large claim, that genetically modified seeds have been problematic everywhere, and from this draws the more localized or special conclusion vthat Mexico will be affected in the same way.

    Reply
  78. Avatar UDEJI BLESSING CHINENYENWA says:
    4 years ago

    There are two main basic method of Economic Analysis, which is Deductive and Inductive reasoning
    DEDUCTIVE METHOD
    This is a simple logic of knowledge required based solely on experience or personal observations that comes with the power of reasoning which uses general principles to arrive at specific facts or conclusion. It is ought to give us a hypothesis and when gets verified we get general Economic principles or laws.
    But when our assumption happens to be logically flawed the whole process becomes faulty which is one disadvantage of this method.
    Deductive method can also be called Priori reasoning.

    INDUCTIVE METHOD
    This is a method that formulates principles using the sub methods observations, experiments, statistical, Economic theory etc to collect information and flows of fact to theory, therefore providing evidence.
    This method is said to be more realistic, reliable and acceptable universally because of the statistical methods and experimentations than just depending on your own reasoning and logic, but when the collection of all the data used is insufficient and faulty it would lead to faulty conclusions making the hypothesis less reliable.

    Reply
  79. Avatar Ani Godlen Daberechi says:
    4 years ago

    Name:Ani Godlen Daberechi
    Reg no:2019/246120
    Email address:daberechi.ani.246120@unn.edu.ng
    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Deductive And Inductive Methods

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data

    Reply
  80. Avatar Ngerem ugonna Samuel says:
    4 years ago

    Name;Ngerem ugonna Samuel
    Jamb reg no:20694751FF
    Faculty of Health science
    Nursing..

    INDUCTIVE:This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods…
    Advantages; Since it is based on facts it is more realistic and reliable. And also
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Disadvantages; If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable. And
    It is a time-consuming process and thus expensive as well…

    DEDUCTIVE METHOD:This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    Advantages; It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages; In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Reply
  81. Avatar Nwazuba Geraldine Mmesoma says:
    4 years ago

    Any economic analysis involves the formulation of laws and generalizations through two methods- (deductive and inductive)

    *Deductive Method:
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    1. Observation of a task/ issue
    2. Making the hypothesis
    3. Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    *Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    *Disadvantages of Deductive Method
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    *Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    1. Observation
    2. Formulation of a hypothesis
    3. Generalizing principles
    4.Verifying against actual facts.

    *Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  82. Avatar Augustine Uchechukwu Sampson says:
    4 years ago

    Name: Augustine Uchechukwu Sampson
    Reg no:2020/243121
    Department: Philosophy

    What are the basic methods of analysis used by economists?
    they are two basic methods:
    (1) Deductive method
    (2) Inductive method

    Briefly and convincingly discuss each of them.
    (1) Deductive method:it means drawing of inference or reasoning from universal to individual.
    Steps of Deductive method
    (a)formulating the assumption: the investigator forms an assumption which are the basic of hypothesis in any economic inquiry,more that one set of assumption.
    (b) selecting the problem:the problem which investigates from inquiry must be stated clearly the more narrow the problem,the better it will be to conduct the inquiry.

    (2) Inductive method:it means collecting information from personal research and giving it out to the universe.
    Steps of Inductive method
    (a)the data should be analysed using appropriate analytical statical technique.
    (b)the problem should be properly stated.
    (c) observation:the problem should be observed in a special way

    Reply
  83. Avatar Otti Victoria Chiemerie says:
    4 years ago

    Name: Otti Victoria Chiemerie
    Faculty: Health science and Technology
    Department: Nursing sciences
    Reg No:20681839BF

    Inductive method:
    The inductive method was employed in economics by the German Historical School which sought to develop economics wholly from historical research. The historical or inductive method expects the economist to be primarily an economic historian who should first collect material, draw gereralisations, and verify the conclusions by applying them to subsequent events. For this, it uses statistical methods. The Engel’s Law of Family Expenditure and the Malthusian Theory of Population have been derived from inductive reasoning.

    1. The Problem:

    In order to arrive at a generalisation concerning an economic phenomenon, the problem should be properly selected and clearly stated.

    2. Data:

    The second step is the collection, enumeration, classification and analysis of data by using appropriate statistical techniques.

    3. Observation:

    Data are used to make observation about particular facts concerning the problem.

    4. Generalisation:

    On the basis of observation, generalisation is logically derived which establishes a general truth from particular facts.

    Thus induction is the process in which we arrive at a generalisation on the basis of particular observed facts.

    The best example of inductive reasoning in economics is the formulation of the generalisation of diminishing returns. When a Scottish farmer found that in the cultivation of his field an increase in the amount of labour and capital spent on it was bringing in less than proportionate returns year after year, an economist observed such instances in the case of a number of other farms, and then he arrived at the generalisation that is known as the Law of Diminishing Returns.

    Merits of Inductive Method:

    The chief merits of this method are as follows:

    (1) Realistic:

    The inductive method is realistic because it is based on facts and explains them as they actually are. It is concrete and synthetic because it deals with the subject as a whole and does not divide it into component parts artificially

    (2) Future Enquiries:

    Induction helps in future enquiries. By discovering and providing general principles, induction helps future investigations. Once a generalisation is established, it becomes the starting point of future enquiries.

    (3) Statistical Method:

    The inductive method makes use of the statistical method. This has made significant improvements in the application of induction for analysing economic problems of wide range. In particular, the collection of data by governmental and private agencies or macro variables, like national income, general prices, consumption, saving, total employment, etc., has increased the value of this method and helped governments to formulate economic policies pertaining to the removal of poverty, inequalities, underdevelopment, etc.

    (4) Dynamic:

    The inductive method is dynamic. In this, changing economic phenomena can be analysed on the basis of experiences, conclusions can be drawn, and appropriate remedial measures can be taken. Thus, induction suggests new problems to pure theory for their solution from time to time.

    Demerits of Inductive Method:

    However, the inductive method is not without its weaknesses which are discussed below.

    (1) Misenterpretation of Data:

    Induction relies on statistical numbers for analysis that “can be misused and misinterpreted when the assumptions which are required for their use are forgotten.”

    (2) Uncertain Conclusions:

    Boulding points out that “statistical information can only give us propositions whose truth is more or less probable it can never give us certainty.”

    (3) Lacks Concreteness:

    Definitions, sources and methods used in statistical analysis differ from investigator to investigator even for the same problem, as for instance in the case of national income accounts. Thus, statistical techniques lack concreteness.

    (4) Costly Method:

    The inductive method is not only time-consuming but also costly. It involves detailed and painstaking processes of collection, classification, analyses and interpretation of data on the part of trained and expert investigators and analysts

    Deductive method:
    Deduction Means reasoning or inference from the general to the particular or from the universal to the individual. The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of facts.

    Then inferences are drawn which are verified against observed facts. Bacon described deduction as a “descending process” in which we proceed from a general principle to its consequences. Mill characterised it as a priori method, while others called it abstract and analytical.

    Deduction involves four steps: (1) Selecting the problem. (2) The formulation of assumptions on the basis of which the problem is to be explored. (3) The formulation of hypothesis through the process of logical reasoning whereby inferences are drawn. (4) Verifying the hypothesis. These steps are discussed as under.

    row relating to an industry. The narrower the problem the better it would be to conduct the enquiry.

    (2) Formulating Assumptions:

    The next step in deduction is the framing of assumptions which are the basis of hypothesis. To be fruitful for enquiry, the assumption must be general. In any economic enquiry, more than one set of assumptions should be made in terms of which a hypothesis may be formulated.

    Formulating Hypothesis:

    The next step is to formulate a hypothesis on the basis of logical reasoning whereby conclusions are drawn from the propositions. This is done in two ways: First, through logical deduction. If and because relationships (p) and (q) all exist, then this necessarily implies that relationship (r) exists as well. Mathematics is mostly used in these methods of logical deduction.

    (4) Testing and Verifying the Hypothesis:

    The final step in the deductive method is to test and verify the hypothesis. For this purpose, economists now use statistical and econometric methods. Verification consists in confirming whether the hypothesis is in agreement with facts. A hypothesis is true or not can be verified by observation and experiment. Since economics is concerned with human behaviour, there are problems in making observation and testing a hypothesis.

    For example, the hypothesis that firms always attempt to maximise profits, rests upon the observation that some firms do behave in this way. This premise is based on a priori knowledge which will continue to be accepted so long as conclusions deduced from it are consistent with the facts. So the hypothesis stands verified. If the hypothesis is not confirmed, it can be argued that the hypothesis was correct but the results are contradictory due to special circumstances.

    Under these conditions, the hypothesis may turn out to the wrong. In economics, most hypotheses remain unverified because of the complexity of factors involved in human behaviour which, in turn, depend upon social, political and economic factors. Moreover, controlled experiments in a laboratory are not possible in economics. So the majority of hypotheses remain untested and unverified in economics.

    Merits of Deductive Method:

    The deductive method has many advantages.

    (1) Real:

    It is the method of “intellectual experiment,” according to Boulding. Since the actual world is very complicated, “what we do is to postulate in our own minds economic systems which are simpler than reality but more easy to grasp. We then work out the relationship in these simplified systems and by introducing more and more complete assumptions, finally work up to the consideration of reality itself.” Thus, this method is nearer to reality.

    (2) Simple:

    The deductive method is simple because it is analytical. It involves abstraction and simplifies a complex problem by dividing it into component parts. Further, the hypothetical conditions are so chosen as to make the problem very simple, and then inferences are deduced from them.

    (3) Powerful:

    It is a powerful method of analysis for deducing conclusions from certain facts. As pointed out by Cairnes, The method of deduction is incomparably, when conducted under proper checks, the most powerful instrument of discovery ever wielded by human intelligence.

    (4) Exact:

    The use of statistics, mathematics and econometrics in deduction brings exactness and clarity in economic analysis. The mathematically trained economist is able to deduce inferences in a short time and make analogies with other generalisations and theories. Further, the use of the mathematical-deductive method helps in revealing inconsistencies in economic analysis.

    It is a powerful method of analysis for deducing conclusions from certain facts. As pointed out by Cairnes, The method of deduction is incomparably, when conducted under proper checks, the most powerful instrument of discovery ever wielded by human intelligence.

    Demerits of Deductive Method:

    Despite these merits, much criticism has been levelled against this method by the Historical School which flourished in Germany.

    1 .Unrealistic Assumption:

    Every hypothesis is based on a set of assumptions. When a hypothesis is tested, assumptions are indirectly tested by comparing their implications with facts. But when facts refute the theory based on the tested hypothesis, the assumptions are also indirectly refuted. So deduction depends upon the nature of assumptions. If they are unrealistic, in this method, economists use the ceteris paribus assumption. But other things seldom remain the same which tend to refute theories

    2. Not Universally Applicable:

    Often the conclusions derived from deductive reasoning are not applicable universally because the premises from which they are deduced may not hold good at all time and places. For instance, the classicists assumed in their reasoning that particular conditions prevailing in England of their times were valid universally. This supposition was wrong. Prof. Lerner, therefore, points out that the deductive method is simply “armchair analysis” which cannot be regarded as universal.

    3. Incorrect Verification:

    The verification of theories, generalisations or laws in economics is based on observation. And right observation depends upon data which must be correct and adequate. If a hypothesis is deduced from wrong or inadequate data, the theory will not correspond with facts and will be refuted. For instance, the generalisations of the classicists were based on inadequate data and their theories were refuted. As pointed out by ircholson, “the great danger of the deductive method lies in the natural aversion to the labour of verification.”

    Conclusion:
    The above analysis reveals that independently neither deduction nor induction is helpful in scientific enquiry. In reality, both deduction and induction are related to each other because of some facts. They are the two forms of logic that are complementary and co-relative and help establish the truth.

    Marshall also supported the complementary nature of the two methods when he quoted Schmoller: “Induction and deduction are both needed for scientific thought as the right and left foot are needed for walking.” And then Marshall stressed the need and use of integrating these methods.

    Now-a-days, economists are combining induction and deduction in their studies of economic phenomena in various fields for arriving at generalisations from observed facts and for the indirect verification of hypotheses. They are using the two methods to confirm the conclusions drawn through deduction by inductive reasoning and vice versa. Thus true progress in economic enquiries can be made by a wise combination of deduction and induction.

    Reply
  84. Avatar Ozoude Jennifer chidera says:
    4 years ago

    What are the basic methods of analysis used by Economists? Briefly and convincingly discuss each of them.
    Answers
    The basic methods of analysis used by economists are
    1.Deductive method.
    2. Inductive method.
    1. Deductive method
    The deductive method is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalisations and theories.
    The principal steps in the process of deriving economic generalisations through deductive logic are:
    (a) Perception of the problem to be enquired into;
    (b) Defining precisely the technical terms and making appropriate assumptions, often called postulates or premises;
    (c) Deducing hypotheses, that is, deriving conclusions from the premises through the process of logical reasoning; and
    (d) Testing of hypothesis deduced.
    2. Inductive Method
    The inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.
    There are three ways which can be used for deriving economic prin­ciples and theories.
    They are:
    (a) Experimentation,
    (b) observations,
    (c) statistical or econometric method.

    Reply
  85. Avatar Uwakwe Esther chekwube,pure and industrial chemistry,2019/242747 says:
    4 years ago

    Uwakwe Esther Chekwube,pure and industrial chemistry,2019/242747, uwakweestherchekwube@gmail.com
    The methods are inductive and Deductive method.
    Deductive method/priori reasoning:here,we start from unchallenged elementary and arrive at conclusions using logical analysis or our own analytical abilities.The stages in this method are observation of a task/issue, making the hypothesis, testing the hypothesis using more observation.also,it is a simple method , doesn’t involve the use of any complex software analysis.
    Inductive method: flow from facts to theory,we collect information and facts and then move towards providing evidence using economic theory and facts.this method formulates principles using the sub method_observation.The stages in this method are observation, formulation of a hypothesis, Generalizing principles, verifying against actual facts.Also it is more realistic and reliable.

    Reply
  86. Avatar OZOR CHISOM PAMELLA says:
    4 years ago

    METHOD OF ANNALYSIS
    1. DEDUCTIVE METHOD
    2. INDUCTIVE METHOD

    1. DEDUCTIVE METHOD:It is also called abstract analytical and proir method and represent an abstract approach. Precisely the technical terms and making of assumptions, deducing hypothesis and testing the hypothesis is also a process followed in deductive method .
    Then by logical reason they arrive at certain conclusions

    2. INDUCTIVE METHOD:It Involves observation and measures of deriving economic generalization in the basis of experience and they also use econometric method of observation. In the inductive methods facts are collected and conclusions are drawn.

    Reply
  87. Avatar Okenwa Eunice Chiyere says:
    4 years ago

    NAME: Okenwa Eunice Chiyere
    REG NO:2020/242140
    EMAIL ADDRESS: chiyereeunice@gmail.com
    DEPT: Business Education
    COURSE:Eco 101

    TOPIC:BASIC METHOD OF ANALYSIS USED BY ECONOMIST
    *Deductive method
    *Indecuctive method
    DEDUCTIVE METHOD
    It is also abstract , analytical and prior method and represents an abstract approach to the derivation of economics generalization and theories.The staages involved are:
    -observation of a task
    -making the hypothesis
    -testing the hypothesis using more observation.
    ADVANTAGES OF DEDUCTIVE METHOD
    *it is a simple method,and doesn’t involve the use of any complex software analysis ,only simple deductive logic is needed.
    DISADVANTAGE OF DEDUCTIVE METHOD
    In this method of reasoning which started from assumption,thus if the assumptions is logically flawed the whole process become faulty and would give wrong conclusions.

    INDECUCTIVE METHOD
    In this method reasoning flows from fact of theory.Firstly, collecting information and facts and then moving forward to providing evidence using economic theory and facts.the stages are:
    *Observation
    *Formation of a hypothesis
    *Generalizing principles
    *Verifying against actual facts
    ADVANTAGES OF INDUCTIVE METHOD
    -It is more realistic and reliable
    -using statical method and experimentation process are scientifically more acceptable than just our own reasoning and logic
    DISADVANTAGE OF INDUCTIVE METHOD
    -It is time-consuming and also expensive
    Collection of data is not easy and varies from person to person.As to how the data is collected.

    .

    Reply
  88. Avatar Attamah juliet chinaza .reg no 29758713ja says:
    4 years ago

    Method of economic analysis
    (1)Deductive method or prior reasoning it starts from unchallenged elementary or rudimentary assumption /facts and then arrive at conclusions (building a hypothesis or theory) using logical analysis or our own analytical abilities.
    Observation of a task /issues
    -making the hypothesis
    -testing the hypothesis using more observation.
    -This reasoning gives us a hypothesis and if this hypothesis get verified we get general economics principles or law
    Inductive method
    This type of reasoning flows from facts of theory, first we collect information and facts and then move towards providing evidence using economic theory and facts, this method formulates principles using the sub-method observation, experimentation,statistical method.
    Stages in these inductive method
    1.Observation
    2.Formulation of hypothesis
    3.Generalizing principles
    2.Verifying against actual facts.

    Reply
  89. Avatar Egwim chinonso Theresa says:
    4 years ago

    NAME: EGWIM CHINONSO THERESA
    DEPARTMENT: ECONOMICS
    LEVEL:100 LEVEL
    EMAIL ADDRESS: egwimtheresa2@gmail.com
    METHODS OF ECONOMICS ANALYSIS
    An economic theory derives laws or generalizations through two methods namely;
    1. Deductive method
    2.inductive method
    1.DEDUCTIVE METHOD OF ECONOMICS 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 and draw conclusions.
    For instance,if we accept the general preposition that man is entirely motivated by self interest. In applying the deductive method of economics analysis, we proceed from general to particular.
    STEPS OF DEDUCTIVE METHOD
    The main steps are;
    1. Perception of the problem to be inquired into.
    2. Clearly defining the one technical terms and analysis.
    3. Deducing hypothesis from the assumptions.
    4. 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.
    This is the simple and easiest way in deriving economic theories.
    2. INDUCTIVE METHOD OF ECONOMIC ANALYSIS.
    This is also called “empirical method” was adopted by the “historical school of economists”. It involves the process of reasoning from particular facts to general principles.
    This methods derives economic generalizations on the basis of ;
    i. Experimentation ii. Observations 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 at a higher rate just to patronise their own products,while the fifth is a fool.
    From the 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 common sense.
    STEPS OF INDUCTIVE METHOD
    1. Observation
    2. Formation of hypothesis.
    3. Generalization.
    4. Verification
    The above analysis reveals that both the methods have weaknesses.we cannot rely exclusively on any one of them .
    Modern economists are of the view that both these methods are complimentary .They are partners and not rivals.
    ALFRED MARSHALL rightly said :”inductive and deductive method are both needed for scientific thought,as the right and left foot are both needed for walking”. We can apply any of them or both as the situation demand.

    Reply
  90. Avatar Abonyi Ifebuche Faith says:
    4 years ago

    NAME: Abonyi Ifebuche Faith
    Jamb reg no: 20691720BA
    Email: ifebuchefaith51@gmail.com

    Firstly, Economic analysis can be defined as a process by which economic laws, generalizations and theories are found. There are two basic methods of economic analysis, namely;

    1.. DEDUCTIVE METHOD: Deductive reasoning,also known as priori, analytical or hypothetical reasoning make analysis based on assumptions and generalizations which precede from general to particular until a theory is made and established.

    EXAMPLE:All valuable goods are expensive, diamond is a valuable good, therefore,diamond is expensive. Below are the steps:
    1. Observation of an issue/problem: The economist must have a clear idea of what the problem is.
    2. Definition of the technical terms and making assumptions: These assumptions are made on careful observations over time. They are called POSTULATES or PREMISES.
    3. Hypothesis: hypothesis are made from observations. Note that hypothesis can be either NULL or ALTERNATE.
    4.Test: Lastly, you test your hypothesis using statistical method.

    ⚫Advantages:It is simple,precise, less expensive, less time consuming and helps in deriving economic theories.
    ⚫Disadvantages:It depends highly on assumptions and varies from time to time and place to place.

    2.. INDUCTIVE METHOD: The inductive method which makes use of data-induced experiments, observations and statistics, involves the process of reasoning which transcends from general to particular. BACON described it as an ascending order.

    EXAMPLE:If tomatoes is a perishable goods and most tomatoes I have bought are sold cheap, then all perishable goods are sold cheap. Below is the step by step procedure;
    1️⃣ perception of the problem
    2️⃣collection of data/facts
    3️⃣Making of observations for a period of time
    4️⃣Making of Hypothesis.
    5️⃣Testing and Generalization.

    ⚫Advantages:It is based on factual data, it is dynamic
    ⚫Disadvantages:It uses insufficient data for a large general purpose, its expensive to run, it’s tedious and time consuming.

    Reply
  91. Avatar Livinus Murna says:
    4 years ago

    Name: LIVINUS MURNA
    Department: Economics
    Reg no: 20686117JF
    Email: livinusmurna7@gmail.com
    TYPES OF ACCOUNTING
    i.Tax accounting:is the subsector of accounting that deals with the preparation of tax returns and tax payments.Tax accounting is used by individuals, businesses, corporations and other entities.Tax accounting for an individual focuses on income, qualifying deductions, donations and any investment gains or losses.
    ii Financial accounting:is a specific branch of accounting involving a process of recording, summarizing and reporting the myriad of transactions resulting from business operations over a period of time…work opportunities for a financial accountant can be found in both the public and private sectors.
    iii.Mansgerial accounting:is the practice of identifying, measuring, analysing, interpreting and communicating financial informations to managers it helps a business Pursue it’s goals by doing all this and communicating it to the manager.
    This are the major types of accounting but we have some other ones like forensic accounting,cost accounting, project accounting, Government accounting e.t.c, with their various uses and importance

    Reply
  92. Avatar Ayogu Fredrick Chibuike says:
    4 years ago

    NAME:AYOGU FREDRICK CHIBUIKE
    REG NO: 2019/242710
    DEPT: PURE AND INDUSTRIAL CHEMISTRY
    COURSE CODE:ECO 101
    COURSE TITLE: PRINCIPLE OF ECONOMICS

    QUESTION: TWO METHODS OF ECONOMIC ANALYSIS

    There are two methods of reasoning in theoretical economics. They are the deductive and inductive methods.

    As a matter of fact, deduction and induction are the two forms of logic that help to establish the truth.

    The Deductive Method:
    Deduction Means reasoning or inference from the general to the particular or from the universal to the individual. The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of facts.
    Then inferences are drawn which are verified against observed facts. Bacon described deduction as a “descending process” in which we proceed from a general principle to its consequences. Mill characterised it as a priori method, while others called it abstract and analytical.
    Deduction involves four steps: (1) Selecting the problem. (2) The formulation of assumptions on the basis of which the problem is to be explored. (3) The formulation of hypothesis through the process of logical reasoning whereby inferences are drawn. (4) Verifying the hypothesis. These steps are discussed as under.
    (1) Selecting the problem:
    The problem which an investigator selects for enquiry must be stated clearly. It may be very wide like poverty, unemployment, inflation, etc. or narrow relating to an industry. The narrower the problem the better it would be to conduct the enquiry.
    (2) Formulating Assumptions:
    The next step in deduction is the framing of assumptions which are the basis of hypothesis. To be fruitful for enquiry, the assumption must be general. In any economic enquiry, more than one set of assumptions should be made in terms of which a hypothesis may be formulated.
    (3) Formulating Hypothesis:
    The next step is to formulate a hypothesis on the basis of logical reasoning whereby conclusions are drawn from the propositions. This is done in two ways: First, through logical deduction. If and because relationships (p) and (q) all exist, then this necessarily implies that relationship (r) exists as well. Mathematics is mostly used in these methods of logical deduction.
    (4) Testing and Verifying the Hypothesis:
    The final step in the deductive method is to test and verify the hypothesis. For this purpose, economists now use statistical and econometric methods. Verification consists in confirming whether the hypothesis is in agreement with facts. A hypothesis is true or not can be verified by observation and experiment. Since economics is concerned with human behaviour, there are problems in making observation and testing a hypothesis.
    For example, the hypothesis that firms always attempt to maximise profits, rests upon the observation that some firms do behave in this way. This premise is based on a priori knowledge which will continue to be accepted so long as conclusions deduced from it are consistent with the facts. So the hypothesis stands verified. If the hypothesis is not confirmed, it can be argued that the hypothesis was correct but the results are contradictory due to special circumstances.
    Under these conditions, the hypothesis may turn out to the wrong. In economics, most hypotheses remain unverified because of the complexity of factors involved in human behaviour which, in turn, depend upon social, political and economic factors. Moreover, controlled experiments in a laboratory are not possible in economics. So the majority of hypotheses remain untested and unverified in economics.
    Merits of Deductive Method:
    The deductive method has many advantages.
    (1) Real:
    It is the method of “intellectual experiment,” according to Boulding. Since the actual world is very complicated, “what we do is to postulate in our own minds economic systems which are simpler than reality but more easy to grasp. We then work out the relationship in these simplified systems and by introducing more and more complete assumptions, finally work up to the consideration of reality itself.” Thus, this method is nearer to reality.
    (2) Simple:
    The deductive method is simple because it is analytical. It involves abstraction and simplifies a complex problem by dividing it into component parts. Further, the hypothetical conditions are so chosen as to make the problem very simple, and then inferences are deduced from them.
    (3) Powerful:
    It is a powerful method of analysis for deducing conclusions from certain facts. As pointed out by Cairnes, The method of deduction is incomparably, when conducted under proper checks, the most powerful instrument of discovery ever wielded by human intelligence.
    (4) Exact:
    The use of statistics, mathematics and econometrics in deduction brings exactness and clarity in economic analysis. The mathematically trained economist is able to deduce inferences in a short time and make analogies with other generalisations and theories. Further, the use of the mathematical-deductive method helps in revealing inconsistencies in economic analysis.
    (5) Indispensable:
    The use of deductive method is indispensable in sciences like economics where experimentation is not possible. As pointed out by Gide and Rist, “In a science like political economy, where experiment is practically impossible, abstraction and analysis afford the only means of escape from those other influences which complicate the problem so much.”
    (6) Universal:
    The deductive method helps in drawing inferences which are of universal validity because they are based on general principles, such as the law of diminishing returns.
    Demerits of Deductive Method:
    Despite these merits, much criticism has been levelled against this method by the Historical School which flourished in Germany.
    1 .Unrealistic Assumption:
    Every hypothesis is based on a set of assumptions. When a hypothesis is tested, assumptions are indirectly tested by comparing their implications with facts. But when facts refute the theory based on the tested hypothesis, the assumptions are also indirectly refuted. So deduction depends upon the nature of assumptions. If they are unrealistic, in this method, economists use the ceteris paribus assumption. But other things seldom remain the same which tend to refute theories.
    2. Not Universally Applicable:
    Often the conclusions derived from deductive reasoning are not applicable universally because the premises from which they are deduced may not hold good at all time and places. For instance, the classicists assumed in their reasoning that particular conditions prevailing in England of their times were valid universally. This supposition was wrong. Prof. Lerner, therefore, points out that the deductive method is simply “armchair analysis” which cannot be regarded as universal.
    3. Incorrect Verification:
    The verification of theories, generalisations or laws in economics is based on observation. And right observation depends upon data which must be correct and adequate. If a hypothesis is deduced from wrong or inadequate data, the theory will not correspond with facts and will be refuted. For instance, the generalisations of the classicists were based on inadequate data and their theories were refuted. As pointed out by ircholson, “the great danger of the deductive method lies in the natural aversion to the labour of verification.
    4. Abstract Method:
    The deductive method is highly abstract and requires great skill in drawing inferences for various premises. Due to the complexity of certain economic problems, it becomes difficult to apply this method even at the hands of an expert researcher. More so, when he uses mathematics or econometrics.
    5. Static Method:
    This method of analysis is based on the assumption that economic conditions remain constant. But economic conditions are continuously changing. Thus this is a static method which fails to make correct analysis.
    6. Intellectually:
    The chief defect of the deductive method “lies in the fact that those who follow this method may be absorbed in the framing of intellectual toys and the real world may be forgotten in the intellectual gymnastics and mathematical treatment.

    The Inductive Method:
    Induction “is the process of reasoning from a part to the whole, from particulars to generals or from the individual to the universal.” Bacon described it as “an ascending process” in which facts are collected, arranged and then general conclusions are drawn.

    The inductive method was employed in economics by the German Historical School which sought to develop economics wholly from historical research. The historical or inductive method expects the economist to be primarily an economic historian who should first collect material, draw gereralisations, and verify the conclusions by applying them to subsequent events. For this, it uses statistical methods. The Engel’s Law of Family Expenditure and the Malthusian Theory of Population have been derived from inductive reasoning.
    The inductive method involves the following steps:
    1. The Problem:
    In order to arrive at a generalisation concerning an economic phenomenon, the problem should be properly selected and clearly stated.
    2. Data:
    The second step is the collection, enumeration, classification and analysis of data by using appropriate statistical techniques.
    3. Observation:
    Data are used to make observation about particular facts concerning the problem.
    4. Generalisation:
    On the basis of observation, generalisation is logically derived which establishes a general truth from particular facts.
    Thus induction is the process in which we arrive at a generalisation on the basis of particular observed facts.
    The best example of inductive reasoning in economics is the formulation of the generalisation of diminishing returns. When a Scottish farmer found that in the cultivation of his field an increase in the amount of labour and capital spent on it was bringing in less than proportionate returns year after year, an economist observed such instances in the case of a number of other farms, and then he arrived at the generalisation that is known as the Law of Diminishing Returns.
    Merits of Inductive Method:
    The chief merits of this method are as follows:
    (1) Realistic:
    The inductive method is realistic because it is based on facts and explains them as they actually are. It is concrete and synthetic because it deals with the subject as a whole and does not divide it into component parts artificially
    (2) Future Enquiries:
    Induction helps in future enquiries. By discovering and providing general principles, induction helps future investigations. Once a generalisation is established, it becomes the starting point of future enquiries.
    (3) Statistical Method:
    The inductive method makes use of the statistical method. This has made significant improvements in the application of induction for analysing economic problems of wide range. In particular, the collection of data by governmental and private agencies or macro variables, like national income, general prices, consumption, saving, total employment, etc., has increased the value of this method and helped governments to formulate economic policies pertaining to the removal of poverty, inequalities, underdevelopment, etc.
    (4) Dynamic:
    The inductive method is dynamic. In this, changing economic phenomena can be analysed on the basis of experiences, conclusions can be drawn, and appropriate remedial measures can be taken. Thus, induction suggests new problems to pure theory for their solution from time to time.
    (5) Histrico-Relative:
    A generalisation drawn under the inductive method is often histrico-relative in economics. Since it is drawn from a particular historical situation, it cannot be applied to all situations unless they are exactly similar. For instance, India and America differ in their factor endowments. Therefore, it would be wrong to apply the industrial policy which was followed in America in the late nineteenth century to present day India. Thus, the inductive method has the merit of applying generalisations only to related situations or phenomena.
    Demerits of Inductive Method:
    However, the inductive method is not without its weaknesses which are discussed below.
    (1) Misenterpretation of Data:
    Induction relies on statistical numbers for analysis that “can be misused and misinterpreted when the assumptions which are required for their use are forgotten.”
    (2) Uncertain Conclusions:
    Boulding points out that “statistical information can only give us propositions whose truth is more or less probable it can never give us certainty.”
    (3) Lacks Concreteness:
    Definitions, sources and methods used in statistical analysis differ from investigator to investigator even for the same problem, as for instance in the case of national income accounts. Thus, statistical techniques lack concreteness.
    (4) Costly Method:
    The inductive method is not only time-consuming but also costly. It involves detailed and painstaking processes of collection, classification, analyses and interpretation of data on the part of trained and expert investigators and analysts
    (5) Difficult to Prove Hypothesis:
    Again the use of statistics in induction cannot prove a hypothesis. It can only show that the hypothesis is not inconsistent with the known facts. In reality, collection of data is not illuminating unless it is related to a hypothesis.
    (6) Controlled Experimentation not Possible in Economics:
    Besides the statistical method, the other method used in induction is of controlled experimentation. This method is extremely useful in natural and physical sciences which deal with matter. But unlike the natural sciences, there is little scope for experimentation in economics because economics deals with human behaviour which differs from person to person and from place to place.
    Further, economic phenomena are very complex as they relate to man who does not act rationally. Some of his actions are also bound by the legal and social institutions of the society in which he lives. Thus, the scope for controlled experiments in inductive economics is very little. As pointed Out by Friendman, “The absence of controlled experiments in economics renders the weeding out of unsuccessful hypo-these slow and difficult.”
    Conclusion:
    The above analysis reveals that independently neither deduction nor induction is helpful in scientific enquiry. In reality, both deduction and induction are related to each other because of some facts. They are the two forms of logic that are complementary and co-relative and help establish the truth.
    Marshall also supported the complementary nature of the two methods when he quoted Schmoller: “Induction and deduction are both needed for scientific thought as the right and left foot are needed for walking.” And then Marshall stressed the need and use of integrating these methods.
    Now-a-days, economists are combining induction and deduction in their studies of economic phenomena in various fields for arriving at generalisations from observed facts and for the indirect verification of hypotheses. They are using the two methods to confirm the conclusions drawn through deduction by inductive reasoning and vice versa. Thus true progress in economic enquiries can be made by a wise combination of deduction and induction.

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  93. Avatar Agbo Ebubechi Maryann says:
    4 years ago

    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).

    Merits of Deductive Method:

    The main merits of deductive method are as under:

    (i) This method is near to reality. It is less time consuming and less expensive.

    (ii) The use of mathematical techniques in deducing theories of economics brings exactness and clarity in economic analysis.

    (iii) There being limited scope of experimentation, the method helps in deriving economic theories.

    (iv) The method is simple because it is analytical.

    Demerits of Deductive Method:

    It is true that deductive method is simple and precise, underlying assumptions are valid.

    (i) The deductive method is simple and precise only if the underlying assumptions are valid. More often the assumptions turn out to be based on half truths or have no relation to reality. The conclusions drawn from such assumptions will, therefore, be misleading.

    (ii) Professor Learner describes the deductive method as ‘armchair’ analysis. According to him, the premises from which inferences are drawn may not
    hold good at all times, and places. As such deductive reasoning is not applicable universally.

    (iii) The deductive method is highly abstract. It require; a great deal of care to avoid bad logic or faulty economic reasoning.

    As the deductive method employed by the classical and neo-classical economists led to many facile conclusions due to reliance on imperfect and incorrect assumptions, therefore, under the German Historical School of economists, a sharp reaction began against this method. They advocated a more realistic method for economic analysis known as inductive method.

    (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) Experimentations (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.

    Merits of Inductive Method:

    (i) It is based on facts as such the method is realistic.

    (ii) In order to test the economic principles, method makes statistical techniques. The inductive method is, therefore, more reliable.

    (iii) Inductive method is dynamic. The changing economic phenomenon are analyzed and on the basis of collected data, conclusions and solutions are drawn from them.

    (iv) Induction method also helps in future investigations.

    Demerits of Inductive Method:

    The main weaknesses of this method are as under:

    (i) If conclusions drawn from insufficient data, the generalizations obtained may be faulty.

    (ii) The collection of data itself is not an easy task. The sources and methods employed in the collection of data differ from investigator to investigator. The results, therefore, may differ even with the same problem.

    (iii) The inductive method is time-consuming and expensive

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  94. Avatar Ogbonna faith chidinma says:
    4 years ago

    Department: public administration and LG
    Reg. No. 20683659ED

    Economics analysis in most cases involves the formation of laws and this can be achieved by the methods
    1.Deductive Reasoning
    2.inductive Reasoning
    Deductive reasoning_also known as priori reasoning,involves the observation of issues, making and testing hypothesis using more observation and if generally acceptable becomes an economic law…
    Inductive Reasoning_it is a fact, information and theories are gathered and tested on through observation result and experiment and obtained result may or may not be verified.this method is more reliable since it is based on fact and statistical methods are used in this approach,it is time consuming and expensive and can be affected by limited data sources.

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  95. Avatar KALU CHINENYENWA PRECIOUS 2019/241518 PURE AND INDUSTRIAL CHEMISTRY says:
    4 years ago

    Economic analysis involves the formulation of laws and generalizations through two methods:
    1) Deductive and
    2) Inductive.
    Methods of Economic Analysis
    DEDUCTIVE METHOD
    This is also called an abstract, analytical and a priori reasoning/method and represents an abstract approach to the derivation of economic generalisations and theories. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    i) Observation of a task/ issue
    ii) Making the hypothesis
    iii) Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.
    The principal steps in the process of deriving economic generalisations through deductive logic are:
    a) Perception of the Problem:
    b) Definition of technical terms and making of assumptions
    c) Deducing hypotheses and through logical deduction
    d) Testing or verification of hypotheses.

    Advantages of Deductive Method
    1) It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    2) This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method
    1) In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.
    INDUCTIVE METHOD
    The Inductive method is also called empirical method derives economic generalisation on the basis of experience and observations.This type of reasoning flows from facts to theory.
    First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods:
    i) Observations
    ii) Experimentations
    iii) Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    i) Observation
    ii) Formulation of a hypothesis
    iii) Generalizing principles
    iv) Verifying against actual facts.
    Advantages of Inductive Method
    1) Since it is based on facts it is more realistic and reliable.
    2) Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    3) Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    1) If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    2) It is a time-consuming process and thus expensive as well.
    3) The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  96. Avatar Uwaezuoke favour Ifunanya says:
    4 years ago

    Methods of economic analysis
    We have two most important methods of economic analysis they are ;
    1.) Deductive reasoning : This is a fundamental structure of valid reasoning. It initiates with a general statement or hypothesis and examines the possibilities to reach a specific, logical conclusion. Deductive reasoning works from the more specific. We might begin with thinking up a theory about our topic of interest . We then narrow that down into more specific hypothesis that we can test . We narrow down even further when we collect observations to address the hypothesis. This ultimately leads us to be able to test the hypothesis with specific data , a confirmation of our original theories.
    Example
    Example:
    Let there be 360 degrees in circle – (A general assumption)
    There are four right angles in circle – (A logical argument)
    Therefore this right angle has 90 degrees – (A particular conclusion)

    2.) Inductive reasoning : this seeks lane generalization from specific observations. In essence there is data and then conclusions are drawn from the data. We begin with specific observations and measures, begin to detect patterns and regularities , formulate some tentative hypothesis that we can explore, and finally end up developing some general conclusions or theories.
    Example
    Example:
    This apple falls to the ground. (A particular observation)
    All apples fall to the ground. (More observations)
    All objects attract each other. (A general explanation)

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  97. Avatar Igboji Divinegift Onyinyechi says:
    4 years ago

    Name: Igboji Divinegift Onyinyechi
    Reg. No.: 20006946IA
    Email address: igbojidivinegift@gmail.com

    There are two basic methods of analysis used by economists. They are:
    (1) The Deductive method
    (2) The Inductive method
    The Deductive method: This method is also known as analytical, abstract or prior method. Deductive method of deriving economic generalizations consists in deriving conclusions from general truths. The principle steps in deriving economic generalizations includes: (a) Perception of the problem to be inquired into. (b) Definition of technical terms and making of realistic assumptions that is verifyable and precise. (c) Deducing hypothesis from the assumption or premises taken. (d) Testing or verification of the above deduced hypothesis.

    The Inductive method: This method derives economic generalizations on the basis of experience and observations. It is also known as empirical method, which involves the process of reasoning from particular facts to general principles. The steps of Inductive method includes: (a) observation (b) formation of hypothesis (c) generalization (d) verification.

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  98. Avatar Egwuchukwu Maryann Chiamaka says:
    4 years ago

    There are two methods of economic analysis:
    A. Deductive Method
    The deductive method, also known as analytical or abstract method, consists of deriving conclusions from general truths and principles. This type of approach is concerned with developing an hypothesis based on existing theory and then designing a research strategy to test the hypothesis. It explores a known theory or phenomenon and verifies if that theory is valid in certain circumstances.
    A deductive method follows the following steps:
    1. There must be a precise or clear idea of the problem
    2. Defining the technical terms used in the analysis and making logical assumptions.
    3. Making or deducing hypothesis from the assumptions taken.
    4. Lastly, testing or verifying the hypothesis through direct observations of areas and statistical methods.
    Merits:
    1. The method is less time consuming and less expensive.
    2. It is a simple and analytical method.
    3. It uses mathematical techniques in developing theories which brings exactness and clarity in economic analysis.
    Demerits:
    1. This method is precise only if the assumptions are valid. Sometimes, the assumptions turn out to be based on half truths or have no relation to reality. Therefore, the conclusions from the assumptions will be misleading.
    2. It is highly abstract. It needs a lot of care to avoid bad logic or faulty economic reasoning.
    B. Inductive Method
    The inductive method, also known as empirical method, involves the process of reasoning from particular facts to general principles. It derives generalizations from experiments, observations and statistical methods. Here, data is collected on a particular economic phenomenon. They are systematically arranged and general conclusions are drawn from them. For instance, we observe 50 people in the market. We find out that 45 persons buy foreign product’s irrespective of it’s high rate just to patronize them while the remaining 5 persons settle for local product’s because they are cheaper. From this observation, we conclude that people like to buy foreign product’s as long as their income rate is above their purchasing power. There are steps to conducting this method:
    1. Making Observations
    2. Forming hypothesis
    3. Generalizations
    4. Making verifications
    Merits:
    1. It is based on facts which makes it realistic
    2. It makes use of statistical techniques which makes it more reliable.
    3. The method is dynamic. As economic phenomenon changes, they are analyzed and on the basis of collected data, conclusions and solutions are drawn from them.
    Demerits:
    1. It is time consuming and expensive.
    2. Collection of data is not easy.
    3. If the conclusions are gotten from sufficient data, the generalizations obtained may be faulty.
    Reg no: 22244035DA

    Reply
  99. Avatar Livinus Murna says:
    4 years ago

    Name: Livinus Murna
    Department: Economics
    Reg no: 20686117JF
    Email: livinusmurna7@gmail.com

    METHODS OF ECONOMIC ANALYSIS:

    Deductive reasoning: Deductive reasoning is a basic form of valid reasoning.Deductive reasoning or deduction,starts out with a general statement,or hypothesis,and examines the possibilities to reach a specific, logical conclusion.
    The deductive methods are:
    Observation of a tasks/issue
    Making the hypothesis
    Testing the hypothesis using more observations.

    Advantages of Deductive reasoning
    It is a simple method, and doesn’t include the use of any complex software analysis, only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is kind of paramount importance.
    Disadvantages of Deductive reasoning
    In this method of reasoning, we start from assumptions, thus, if the assumptions happen to be logically failed, the whole process becomes faulty and would give wrong conclusions.

    INDCTIVE REASONING: Inductive reasoning is a type of logical thinking that involves forming generalizations based on specific incidents you’ve experienced, observations you’ve made,or facts you know to be true or false.
    Examples of inductive reasoning:
    *: Jennifer always leaves for school at 7:00am, Jennifer is always on time
    *:The cost of goods was $1.00
    *:Every windstorm in this area comes from the north
    Advantages of inductive reasoning
    Since it is based on facts, it is more reclufia and reliable using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusion
    Disadvantages of inductive reasoning
    If the data used is insufficient and faulty, it would lead to faulty conclusions, making the hypothesis less reliable
    It is time consuming and thus expensive as well
    The collection of all the data is not easy and varies individually.

    Reply
  100. Avatar Ugwuonah joy Ifunaya says:
    4 years ago

    Uguwuonah joy Ifunaya
    Reg no:2019/244617
    Methods of Economic Analysis: Deductive Method and Inductive Method Some of the most important methods of economic analysis are as follows: 1. Deductive Method 2. Inductive Method.

    Economic generalisations describe the laws or statements of tendencies in various branches of economics such as production, consumption, exchange and distribution of in­come. In the view of Robbins, economic generalisations or laws are statements of uniformities which describe human behaviour in the allocation of scarce resources between alternative ends.

    The generalisations of economics like the laws of other sciences, state cause and effect relation­ships between variables and describe those economic hypotheses which have been found consistent with facts or, in other words, have been found to be true by empirical evidence. But a distinction may be drawn between a generalisation (law) and a theory. A law or generalisation just describes the relationship between variables; it does not provide any explanation of the described relation. On the other hand, a theory provides an explanation of the stated relation between the variables, that is, it brings out the logical basis of the generalisation. An economic theory or a model derives a generalisation through process of logical reasoning and explains the conditions under which the stated generalisation will hold true.

    1. Deductive Method:

    Generalisations in economics have been derived in two ways:

    (1) Deductive Method,

    (2) Induc­tive Method. The principal steps in the process of deriving economic generalisations through deductive logic are:

    (a) Perception of the problem to be enquired into;

    (b) Defining precisely the technical terms and making appropriate assumptions, often called postulates or premises; The principal steps in the process of deriving economic generalisations through deductive logic are:

    (a) Perception of the problem to be enquired into;

    (b) Defining precisely the technical terms and making appropriate assumptions, often called postulates or premises; 2. Inductive Method:

    The inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.

    But, it is worth mentioning that the number of observations has to be large if it can yield a valid economic generalisation. One should not generalise on the basis of a very few observations. There are three ways which can be used for deriving economic prin­ciples and theories.

    They are:

    (a) Experimentation,

    (b) observations,

    (c) statistical or econometric method.

    As has been mentioned above, the experimentation, that is, the use of contrived experi­ments is of limited applicability in economics. First, unlike natural sciences which are concerned with analysing the behaviour of either inanimate objects or obedient animals such as rats and rabbits under the influence of chloroform, economics deals with the behaviour of man who is quite fickle, wayward and unmanageable.

    Besides, man cannot tolerate the idea of being experimented upon, either individually or collectively. Secondly, an economic phenomenon is the result of multiplicity of factors and causes acting and interacting upon each other.

    Therefore, economic phenomenon does not repeat itself in the same uniform pattern. Numerous factors acting on an economic phe­nomenon ‘disturb’ it and make its exact repetition unlikely. Thus, as compared with the natural phenomena, economic phenomena are of less uniform pattern, less repetitive and more variable.

    Thirdly, economists study the economic phenomena in which pressure groups such as employ­ers’ associations, trade unions, farming lobby, political parties with their different ideologies play a crucial part and their activities render it difficult to make controlled experiments in the economic world. However, in spite of these difficulties, experimental method can be used in some fields.

    For instance, experiments have been conducted to find out which law of production is valid, that is, whether law of diminishing returns, law of constant returns or law of increasing returns operates in the real world. Besides, public undertakings or big industrial firms often try to assess the effect of the changes in the prices of their products on the demand for it and thus find out the demand elastic­ity of their products Evaluation of Inductive Method:

    As has been explained above, observations of facts through collection of detailed data and the use of statistical methods to arrive at economic generalisations establishing relationship between facts are being increasingly made.

    Some of the recent researches in the field of macroeconomics, such as the nature of consumption function describing the relation between income and consump­tion, the principle of acceleration describing the factors which determine investment in the economy have been obtained through the use of mainly inductive method.

    However, it needs to be emphasised again that the use of induction or empirical method is not of much value if it is not supported by the economic hypothesis or theory developed by deductive logic. The inductive method can at best be used to empirically test the theory or hypothesis as to whether it is consistent with or refuted by facts.

    The inductive method has another limitation in that there is a great risk of conclusions being drawn from insufficient data. To obtain generalisations through inductive method, one should take care that sufficient number of observations or data has been taken into account.

    Besides, the collection of data itself is also not an easy task. And a researcher who wants to employ the inductive method to arrive at generalisations must have good knowledge of statistical methods, that is, he must know the art of collecting, processing and inter­preting data. It is obvious that as compared with the deductive method, the inductive method is time-consuming and expensive.

    Reply
  101. Avatar AMAEFULE RAPHEAL IZUCHUKWU says:
    4 years ago

    NAME: AMAEFULE RAPHEAL IZUCHUKWU
    REG NO:21353407EF
    EMAIL: amaefuleraphael2002@gmail.com

    METHODS OF ECONOMIC ANALYSIS
    There are basic methods of reasoning in Theoretical Economics which are the Deductive and Inductive methods.As a matter of fact, these forms of logic are complementary and co-relative which help to establish the truth. The two methods will be briefly and convincingly discussed in the subsequent paragraphs below.
    -Deductive Methods:This is a method of economic analysis which involves reasoning that moves from the general to the specific ,a descending process,in which a conclusion follows necessarily from the inferences presented ,so that the conclusion cannot be false if the inferences are true. The inferences drawn are verified against observed facts. It sole aims at testing an existing theory. It involves;
    *Selecting the problem because the narrower it is the more the study,
    *Formulating assumptions which serves as a basis of forming hypothesis,
    *Formulating hypothesis,
    *Testing and verifying the hypothesis.

    -Inductive Methods:This is a method of economic analysis termed to be an “ascending process” which involves the derivation of general principles or theories from specific instances or observations. It aims at developing a theory. It involves;
    *Collection, classification and analysing data using statistics techniques,
    *Data are then used to make observations about particular facts concerning the problem,
    *On the basis of observations, generalisation is logically derived which establishes a general truth from particular facts.
    This method brings about exactness and clarity in economic analysis with the use of Mathematics, Statistics and Econometrics.

    Economics can be a very “deductive subject” as Economists are used to constructing complicated models of human behaviour which will begin with a number of assumptions. However,Economics is also an “empirical subject”,using deductive and Inductive methods to explain observed facts. However,In practice,it can be very difficult to say where deduction ends, induction begins as one cannot leave his study in order to formulate theories because if the study is being left the success of analysing the problem cannot be possible.
    The deductive method of economic analysis is static in nature i.e assumption that economic conditions remain constant,while the Inductive methods seems to be dynamic as it suggests new problems to pure theory for their solution time to time. The deductive method is a simple one because it is analytical as it divides complex problems to component parts while the Inductive method is costly and time consuming.
    The world’s best Deducers are also keen observers of human behaviour and so, Economists need to use both deduction and induction in their work

    Reply
  102. Avatar ABAMUCHE LINDA C. says:
    4 years ago

    ABAMUCHE LINDA C.
    REG. NO.: 2019/SD/37674
    QUESTIONS
    1) What are the difference between macroeconomic and microeconomics?
    2) Discuss the three different ways of computing GDP.
    3) Without diagrams, clearly discuss the circular flow of income and product in a 2 – sector economy, 3 – sector economy and 4 – sector economy.
    Macroeconomics is the branch of economics dealing with the performance, structure, behaviour and decision making of an economy as a whole. For example, using interest rates, taxes and the government spending to regulate an economy’s growth and stability. While micro economics is a branch of economics that studies the behaviour of individual unit such as households, individuals and enterprises within the economy.
    Differences between Macro Economics and Micro Economics
    S/N Macro economics Micro economics
    1 Macro economics is the study of the whole economy Micro economics is the study of particular market
    2 it loose at aggregate variables such as aggregate demand national output It looks at issues such as consumer behaviour, individual labour markets and the theory of firm.
    3 macro economics is complex due to the study of large group micro economics analysis is simple
    4 problems related to whole economy like employment public finance national income are included in its scope law related to marginal analysis are included in its scope.
    5 it provides the information relating to national income, total output, total consumption and general price level it provides the information relating to the individual prices, individual consumption and production.

    2. DISCUSS THE THREE DIFFERENT WAYS OF COMPUTING GDP.
    1. Expenditure approach
    2. Income approach
    3. Output approach
    1) Expenditure approach: This is the most widely used approach for estimating GDP, which is a measure of the economy’s output produced within a country’s borders irrespective of who owns the means of production. The GDP under this method is calculated by summing up all of the expenditures made on final goods and services.
    2) Income Approach: This method comprise of the income generated from the basic factors of production or is been calculated by adding up all the factor incomes to the factors of production in the society, which includes land, labour, capital entrepreneurship or organisation. The production unit are divided into different sectors, income is calculated for each sector and summed up to arrive at net domestic product.
    3) The output approach focuses on finding the total output of a nation by directly finding the total value of all goods and services a nation produces. Because of the complication of the multiple stages in the production of a good or service, only the final value of a goods or services is included in the total output.

    CIRCULAR FLOW IN A SIMPLE 2 – SECTOR ECONOMY
    2 – sectors flow in circular economy flow in its basic form, looking at a simple economy which is made up of only households and firms. This is a two sector economy with no government. The factors owns (households) in turn spend all of their income on goods which leads to a circular flow of income and also it is assumed that all production is done by firms and the firms sell all their entire output to consumer as soon as it produced.
    3 – SECTOR (CIRCULAR WITH SAVING AND INVESTMENT)
    In the flow diagram, the clockwise arrows showing the flow of goods and services have been removed just to simplify the diagram, they are new 2 parts ways along which expenditures travel on their way from household to product market. Some household income is use for consumption expenditure and reaches the product market directly; other household income is directed to savings.

    4 – SECTOR FLOW WITH GOVERNMENT
    They are now 2 new channels along which funds can flows from households to product market. The government take in revenue from taxes they made from household, some of the revenue immediately returns to the household in form of transfer payment. Funds flow household to government as net taxes and then from government to product market as government purchase.

    Reply
  103. Avatar john okechukwu james says:
    4 years ago

    Name: John okechukwu james
    REG no: 21445019hf
    DEPT: Social Science Education ( Education Economics)
    Email: sponkybrown3@gmail.com
    Title : Method of Economics Analysis

    An Economics theory derives laws or generalization through this method (I) Deductive method and (II) Inductive method.

    1) Deductive method of Economics analysis : the deductive method consist in deriving conclusion from general truth, takes few general principles and applies them draw conclusion. Deductive method is also named as analytical , abstract or prior method.
    Steps of deductive methods;
    * perception of the problem
    * Defining of terms
    * Deducing hypothesis from the assumptions
    * Testing of hypothesis
    Merits of Deductive method
    1. the method is near to reality ,it is less time consuming and less expensive
    2. the use of mathematical techniques in deductive theories of economics brings exactness and clarity in economics analysis
    3. there is been limited scope of experimentation, the method helps in deriving economics theories.
    Demerit of economics method;
    * the deductive method is highly abstract. it require a great deal of care to avoid bad logic or faulty economics reasoning
    * the deductive method is simply and precise only if thr underlying assumption are valid.

    Inductive method of Economics analysis
    This method derives economics generalization on the basic of
    1) Experimentation 2) Observation and 3) Statistical method
    Steps of Inductive method
    * Observation
    * Formation of hypothesis
    * Generalization
    * Verification
    Merit of Inductive method;
    1) is based on facts as such the method is realistic
    (ii) In order to test the economic principles, method makes statistical techniques. The inductive method is, therefore, more reliable.
    (iii) Inductive method is dynamic.
    (iv) Induction method also helps in future investigations.

    Demerit of Inductive method;
    i) If conclusions drawn from insufficient data, the generalizations obtained may be faulty.
    (ii) The collection of data itself is not an easy task.
    (iii) The inductive method is time-consuming and expensive.

    Reply
  104. Avatar Okafor Chioma Nancy says:
    4 years ago

    OKAFOR CHIOMA NANCY
    REG. NO : 2020/242649
    DEPARTMENT: ECONOMICS
    Email : nancyokafor2000@gmail.com

    METHODS OF ECONOMIC ANALYSIS
    Economic analysis is simply the study of economic systems.The analysis aims to determine how effectively the economy or something within it is operating.
    There are two major methods of economic analysis and they are – DEDUCTIVE AND INDUCTIVE method-

    1. INDUCTIVE METHOD: This method is also known as empirical method. in this method, observations are combined with experiential information to reach a conclusion, meaning that when faced with specific sets of data we make reasonable conclusions based on existing knowledge we’ve had from previous experience.

    2. DEDUCTIVE METHOD: This method is also known as priori method. In this method,we start from raw facts or assumptions and build a hypothesis or theory using basic analytical tools in order to arrive at a conclusion. This method focuses on economic reasoning as hypothesis will have to be deduced and tested before any assumption can become a theory.

    Reply
  105. Avatar OMEKE PRECIOUS OGECHI says:
    4 years ago

    NAME: OMEKE PRECIOUS OGECHI
    REG. NO: 2020/243294
    DEPARTMENT: PUBLIC ADMINISTRATION AND
    LOCAL GOVERNMENT
    FACULTY: SOCIAL SCIENCE
    COURSE CODE: ECO 101

    ECONOMIC ANALYSIS
    Economic analysis is the study of economic system which is the study of a production process or an industry.
    Economic analysis is all about analysing the economic aspects of things.

    METHODS OF ECONOMIC ANALYSIS
    There are two basic methods of economic analysis they are:- Deductive and Inductive reasonings or methods.

    DEDUCTIVE METHOD
    Deductive method is also called an abstract, analytical and prior reasonings. The analysis start from unchallenged elementary or rudimentary facts or assumption and then arrive at a conclusion using logical analysis or one personal analytical truths.
    STEPS OF DEDUCTIVE METHOD/ REASONING
    1) Identify the problem: You need to know the problem in other to get the solution.
    2) Make assumptions.
    3) Logical deduction to derive implications
    4) Formulation or making of hypothesis.
    5) Make predictions and test the hypothesis deduced using more observation.
    6) Predictions are in agreement with facts.
    “Deductive reasoning gives us hypothesis and if the hypothesis gets verified we have general economic principles of law.”
    This method also has advantages and disadvantages.

    INDUCTIVE METHOD
    Inductive method is also known as empirical method. This method is a type of reasoning that flows from facts to theory. First of all, there will be a collection of information or facts and then providing of evidence using economic theory and facts. Inductive method derives economic analysis on the basis of experience and observation. Inductive method formulates principles using sub – methods. they are:- Observation, Experimentations and statistical methods.
    STEPS IN INDUCTIVE METHODS
    1) Identify the problem.
    2) Define the technical terms and alterables related to the problem found.
    3) Collection of datas about the variables related to the problem.
    4) Procession of the data collected to find out how the variables are related.
    5) Make predictions or foretale and test them.
    6) Predictions are in agreement with facts.
    There are also advantages and disadvantages of Inductive method.

    Reply
  106. Avatar NNADI MARYANN AMARACHI says:
    4 years ago

    Name: NNADI MARYANN AMARACHI
    Reg. No: 20684723DF
    Dpet: Nursing Sciences

    What are the basic methods of analysis used by Economists?
    An economist is a person or an expect in the study of the reasoning behind people decisions-making and have interest in data usage to conduct research that leads to boost profits or create a better public policy. In order to achieve its purpose, an economist apply some basic methods of analysis. These include the following;
    1. Deductive method of analysis and
    2. Inductive method of analysis

    Briefly and convincingly discuss each of them
    Deductive method of analysis
    This is the method of analysis applying a kind of reasoning that goes from general to specific. It refers to priori reasoning. In this method, one observes a particular task or issue at hand, makes hypothesis and test the hypothesis using more observations. This analysis do not involve using any complex computer software analysis but only simple deductive logic is required to complete the task. However, as this method of reasoning begins from assumptions, when such assumptions are logically flawed, a wrong conclusions will be given.
    Inductive method of analysis
    This analysis uses data collected about a specific theory in economic to draw a conclusion. That is, inductive type of reasoning flows from some facts to a theory. The process involves observation, formulation of a hypothesis, generalizing principles and verifying against actual facts. This method of analysis by economist is more realistic and reliable because it is based on facts. However, when such analysis use insufficient and faulty data, it will result to a faulty conclusions.

    Reply
  107. Avatar Okechi Francis Uche says:
    4 years ago

    Okechi Francis Uche
    2020/242648
    okechif0@gmail.com

    Method of Economic Analysis

    Economics analysis are done major by;
    1. Deductive method
    2. Inductive method

    Deductive method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    1. Observation of a task/ issue
    2. Making the hypothesis
    3. Testing the hypothesis using more observations, etc.

    Advantages of Deductive Method
    1. It is a simple method
    2. It doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    3. This method is important for economic reasoning which is of paramount importance.

    Disadvantages of Deductive Method

    In this method we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods. We make use of econometerc ackages in this method.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    1. Observation
    2. Formulation of a hypothesis
    3. Generalizing principles
    4. Verifying against actual facts.

    Advantages of Inductive Method

    1. Since it is based on facts it is more realistic and reliable.
    2. Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    3. Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of Inductive Method
    1. If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    2. It is a time consuming process and thus expensive as well.
    3. The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  108. Avatar Magbo Chidimma Joy says:
    4 years ago

    Name:Magbo Chidimma Joy
    Matric/Reg no: 2020/242674
    Department: Economics Education
    Course Code: Eco 101
    Course title: principles of Economic
    Email joychidimma961@gmail.com

    Basic method of Analysis used by Economics are:
    Deductive Method
    Inductive Method

    Explanation
    1 Deductive Method: This is also called a prior reasoning. It starts from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusion ( building hypothesis using logical analyze or out own analysis or ablities. In this kind of reasoning we go from general to specific.
    Stage in deductive Method are
    1 observations on a task/ issue
    2 making the hypothesis
    3 Testing the hypothesis using more observation

    Advantages of Deductive Method
    1 it is a simple method, it doesn’t involve the uses of any complex software analysis.
    2 This methods focuses more on Economic reasoning which is of paramount importance to Economists
    Disadvantages of Deductive Method
    i the method of reasoning start from assumptions thus if the assumptions is logical flawed the whole process becomes Faulty and would give wrong conclusion.

    2 Inductive Method: This methods of reasoning flows from facts to theory. This method formulates principles using this sub-method: observations, Experimations, statistical method.
    The stages in this method are:
    i Observation
    ii Formulation of hypothesis.
    iii Generalising principles
    iv Verifying against actual facts

    Advantages of inductive Method
    i since it is based on facts it is more realiable
    ii using statistica methods and experimentation makes the process more scientific this making it more universally acceptable
    Disadvantages of inductive Method
    i The collection of all the data is not an easy Job and varies from person. As to how they collect data
    ii it is time consuming and thus expensive as well

    Reply
  109. Avatar Charles thankgod Ekenedilichukwu says:
    4 years ago

    Name : Charles ThankGod Ekenedilichukwu
    Reg Number : 2020/242137
    Email : thankgodcharles65@yahoo.com
    Course code : Eco 101
    Department : Business Education.

    Basic method of economic analysis :
    Deductive reasoning simply mean logical thinking that starts with a general idea (premises) from general to specific and reaches a specific conclusion . An example using deductive reasoning :
    1) all human being can breath
    2) Mr emeka can breath
    3) therefore , Mr emeka is a human being .

    Inductive reasoning is a method that involves drawing one’s experience , observation, conclusion from specific observation to general . Further more, inductive reasoning involves the following steps :
    First ,observe the figures , look for similarities and difference.
    2) Generalise these observation.
    3) predict the figures .

    Reply
  110. Avatar ABAMUCHE AGATHA NKIRU says:
    4 years ago

    ABAMUCHE AGATHA NKIRU
    REG. NO.: 2019/SD/37673
    Question
    1) What are the difference between macroeconomic and microeconomics?
    2) Discuss the three different ways of computing GDP.
    3) Without diagrams, clearly discuss the circular flow of income and product in a 2 – sector economy, 3 – sector economy and 4 – sector economy.
    Micro economics is the study of indivisible units of an economy. It is also the study of an economy in a disaggregated form while macro economics is the branch of economics concerned with large-scale or general economic factors, such as interest rates and national productivity.
    DIFFERENCES BETWEEN MICRO AND MACRO ECONOMICS
    S/N Micro Macro
    1 micro economics studies the income of an individual macro economics studies about the national income
    2 micro economics concerns itself decisions of individuals and business decision macro analyzes the decisions that are made by countries and government.
    3 micro economics adopts a bottom-up approach. It focuses on the demand and the supply and other forces that play out in the price levels macro economics adopts a top down approach. It looks into the policies and decisions that influence the direction taken by other players in the economy
    4 micro economics engages in the study of the behaviours of individuals forms, and households in a given with regards to how they make both ends meet macro economics looks at the economy in its entirely. It examines how the various forces interact and engage at a larger level like the region, the nation and the entire globe.
    5 investors can use micro economics in the investment decision macro economics is an analytical tool mainly used to craft economic and fiscal policy

    The expenditure approach
    The output approach or production
    The income approach
    The expenditure approach also known as spending approach calculates spending by eth different groups that participate in the economy. The U.S. is primarily measured based on the expenditure approach.
    The approach can be calculated using the following formula
    GDP = C + G + I + NX
    Where
    C = consumption
    G = government spending
    I = Investment
    NX = net exports
    The output or production Approach: The production approach is essentially the reverse of the expenditure approach. Instead of measuring the input costs that contribute to economic activity, the production approach estimates the total value of economic output and deducts the cost of intermediate goods that are consumed in the process.
    The Income Approach: The income approach represents a kind of middle ground between the two other approaches to calculate GDP. The income approach calculates the income earned by all the factors of production in an economy.
    THE CIRCULAR FLOW IN A SIMPLE (2 SECTOR) ECONOMY
    In this type of economy, it is assumed that household spend all their incomes on consumer’s goods as soon as the income is received. All consumption is assured to take place in the household. This means that the business sector does not consume finished goods. It is also assumed that all production is done by firms and the firms sell all their entire output to consumers as soon as it is produced.
    CIRCULAR FLOW WITH SAVINGS AND INVESTMENT (3 – SECTOR) ECONOMY
    Some household income is use for consumption expenditure and reaches the product market directly, other household income is indirected to savings and this is a source of funds for firms to use in making investment expenditure. The income reaches product market directly. On the way from household to firms, the flow of savings pass through a set of financial market.
    CIRCULAR FLOW WITH GOVERNMENT (4 – SECTOR)
    The government take in revenue from taxes they made from households, some of the revenue immediately returns to the household in the form of transfer payment. The government collect tax as revenue and pay out as transfer payment and it is called net taxes. Funds flows from household to government as net taxes and then from government to product market as government purchases.

    Reply
  111. Avatar OGBONNA CHINECHEREM RITA says:
    4 years ago

    Name: ogbonna chinecherem Rita
    Reg no: 20155373IF
    Dept: social science education
    Unit: economics education
    Course code: Eco 101
    Email: ogbonnachinecheremrita@gmail.com

    Economics analysis involves the formulation of law and generalisations through two methods thus: DEDUCTIVE AND INDUCTIVE REASONING.
    1. Deductive method: it is a process of drawing conclusions based on the premises genaraly accepted and assumed to be true,it uses only information assumed to be correct and accurate not based on feelings and emotions,it is also called abstract, analytical and a prior method.steps to take before drawing conclusions, there are four steps in drawing conclusion through deductive method 1. Perception of the problem: the Economist must have a clear and vivid idea of the problem to be solved 2. Defining technical terms and making assumptions: you have to define terms to be used and make some clear assumptions concerning to the problem to be solved 3. Deducing hypothesis: the Economist have to draw hypothesis gotten from the assumption made 4. Testing hypothesis: the hypothesis gotten from the assumption made must be verified tested and undergo series of experiments before generalizing or going into conclusion
    Example of deductive method/reasoning thus: all birds have feathers,all robins are bird therefore,robins have feathers.

    2. Inductive method: it is a method of reasoning in which the premises are viewed as supplying evidence with no full assurance but drawing conclusion from a state a set of specific observation example 1. All black dogs I have seen are wicked therefore all black dogs are wicked this is a weak arguments because they are also black dogs that are not wicked, so we make it stronger by putting it under probability thus all black dogs I have seen are wicked therefore most black dogs are probably wicked. inductive reasoning is used everyday to build an understanding of the world, inductive reasoning is also known as historical methods in economics analysis.

    Reply
  112. Avatar NNADI MARYANN AMARACHI says:
    4 years ago

    What are the basic methods of analysis used by Economists?
    An economist is a person or an expect in the study of the reasoning behind people decisions-making and have interest in data usage to conduct research that leads to boost profits or create a better public policy. In order to achieve its purpose, an economist apply some basic methods of analysis. These include the following;
    1. Deductive method of analysis and
    2. Inductive method of analysis

    Briefly and convincingly discuss each of them
    Deductive method of analysis
    This is the method of analysis applying a kind of reasoning that goes from general to specific. It refers to priori reasoning. In this method, one observes a particular task or issue at hand, makes hypothesis and test the hypothesis using more observations. This analysis do not involve using any complex computer software analysis but only simple deductive logic is required to complete the task. However, as this method of reasoning begins from assumptions, when such assumptions are logically flawed, a wrong conclusions will be given.
    Inductive method of analysis
    This analysis uses data collected about a specific theory in economic to draw a conclusion. That is, inductive type of reasoning flows from some facts to a theory. The process involves observation, formulation of a hypothesis, generalizing principles and verifying against actual facts. This method of analysis by economist is more realistic and reliable because it is based on facts. However, when such analysis use insufficient and faulty data, it will result to a faulty conclusions.

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  113. Avatar Ameh Hillary okechukwu, 2019/41289 says:
    4 years ago

    Economic Analysis

    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.
    Methods of Economic Analysis
    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.
    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.
    Deductive And Inductive Methods
    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

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  114. Avatar Edeh loveth ifeoma says:
    4 years ago

    NAME-Edeh loveth ifeoma
    Department- combined social science
    ( economic/political science)
    MATRIC Number- 2020/242988
    Email- ifeomaloveth33@gmail.com
    METHOD OF ECONOMIC ANALYSIS
    1; DEDUCTIVE METHOD- we shall first explain the Deductive method of deriving economic generalisation. The Deductive method is also called abstract, analytical and a prior method and represent an abstract approach to the derivation of economic generalisation and theories. With the aid of rigorous mathematical logic, economic theories can be developed through the process of deduction which can successfully explain economic phenomena.through Deductive logic useful economic theories can be derived without collection and analysis of data which are required under inductive method,this as compared to inductive method deduction is less time consuming and less expensive. The sophisticated mathematical method in the Deductive approach enables the economist to introduce accuracy and exactness in economic principle and theories.
    2; INDUCTIVE METHOD- This inductive method which is also called empirical method derived economic generalisation on the basic of experience observation.
    In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisation which follow from the observation collected. The main step involved in the application of inductive method are
    Observation
    Formation of hypothesis
    Generalisation
    Verification
    Inductive method is based on fact as such the method is realistic and this method is dynamic, the changing economic phenomenon are analyzed and on the collected data.conclusion and solution are drawn from them and this method also help in future investigation.

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  115. Avatar Mamah Faith Okwukwe says:
    4 years ago

    NAME:MAMAH FAITH OKWUKWE
    DEPARTMENT:ECONOMICS
    REG NO:20644865BF
    EMAIL ADDRESS: http://www.mamahokwukwe24@gmail.com

    METHODS OF ECONOMIC ANALYSIS:
    The methods used in analyzing the relationship between two variables with the use of economic research are:
    *Deductive method
    *Inductive method

    *DEDUCTIVE METHOD:
    This is an abstract approach to the derivation of economic generalizations and theories.

    STEPS INVOLVED IN DEDUCTIVE METHOD
    *The analyst or theorist should perceive and observe the problem to be enquired into, have a clear understanding of it and try to present it in such a way that it awakens people’s curiosity.
    *The theorist should define clearly,precisely and unambiguously the technical terms as well as make appropriate and indisputable postulates through the observations.
    *The analyst should deduce a hypothesis, deriving conclusions from the postulate through the process of logical reasoning.
    *The economist should test the deduced hypothesis by uncontrolled experience so as to know if the hypothesis is an alternate or nol hypothesis.
    The merit of this method is that it facilitates economic reasoning and does not involve complex software analysis. The demerit is that if it’s assumption is logically flawed, the whole process becomes faulty.

    INDUCTIVE METHOD:
    This is a method that encomprises of collecting data and facts about the significant variables whose interrelationship and behaviour he wants to derive generalization, provide evidence and back up using economic theories.

    STEPS INVOLVED IN INDUCTIVE METHOD ARE:
    *The theorist should perceive and observe the problem to be enquired into.
    *The theorist should define the technical terms clearly.
    *The theorist should collect all data about the particular economic theory and make assumptions.
    *The analyst should form a hypothesis.
    *The analyst should draw conclusions and verify them with reference to actual facts and the behaviour of the economy.
    The merit is that it is more reliable since it is based on fact, it is highly practical, it is helpful in verifying the conclusion of deductive logic etc.
    The demerit is that it consumes time, data collection is not easy since it varies from person to person, mere Inductive method cannot do the job alone (it also needs deductive method).

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  116. Avatar Ugwuanyi Sunday Chetachi says:
    4 years ago

    NAME: Ugwuanyi Sunday Chetachi
    REG. NO: 20686711HA
    DEPARTMENT: Public Administration And Local Government
    COURSE CODE: Eco.101
    COURSE TITLE: Principles of Economics

    Question: What are the basic methods of analysis used by Economists? Briefly and convincingly discuss each of them.

    Basically, in Economic analysis theories obtain generalizations or laws through two methods;
    A. Deductive method or Analytical Abstract method
    B. Inductive method or Empirical method

    DEDUCTIVE METHOD
    This method of economic of Economic Analysis reach conclusion by taking and applying general or wildly accepted principles. it consists of gaining conclusions from general truth;
    there are several steps involved in deductive Analysis. they include:
    I. perception of the problem to be inquired into.
    II. defining of terms
    III. deducing hypothesis from the assumption.
    iv. testing of hypothesis
    This method is less time consuming and less expensive. it brings exactness and clarity in economic analysis due to the use of mathematical techniques.
    On the other hand, the deductive method is highly abstract. it requires a great deal of care to avoid bad logic or faulty economic reasoning.

    INDUCTIVE METHOD OR EMPIRICAL METHOD
    This method entails the process of reasoning from particular facts to general principles. it was adopted by the historical school of Economists.
    In this method of Economic Analysis, Economic generalization is gained on the basis of the following;
    i. experimentation
    ii.observations
    iii.statistical methods.
    There are four main steps involved in this method, which include; observation, formation of hypothesis, Generalization and verification.
    this method is realistic due to the fact that it is based on facts. it is also dynamic and reliable. On the other hand, this method is time-consuming and expensive. Generalization obtained through this method may be faulty if the conclusion is drawn from insufficient data.

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  117. Avatar Eze Immaculeta Ebubechi says:
    4 years ago

    Name:Eze Immaculeta Ebubechi
    Dept:public administration and local government
    Reg number:20679439EF

    1)Inductive method:This method flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principle using the sub-method-observation, experiments, statistical methods. Data is collected about a particular economic theory and then conclusions are drawn. The stages in the method are:
    Observation
    Formulation of hypothesis
    Generalizing principles
    Verifying against actual facts.

    2:Deductive methods: This is also called prior reasoning. We start from unchallengeably elementary or rudimentary assumptions/facts and then arrive at conclusion( build a hypothesis or theory) using logical analysis or own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    Observation of a task or issue
    Making hypothesis
    Testing the hypothesis using more observations..
    Etc

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  118. Avatar Okoloaja Vanessa Mmerichukwu says:
    4 years ago

    Name: Okoloaja Vanessa Mmerichukwu
    Reg no:21320516FF
    Email: Mmerichukwunessa77@gmail.com
    1. Deductive method: The deductive of economic analysis also known deductive logic entails the movement from general to particular reasoning,it is also known as an hypothetical method . The deductive reasoning provides generalisation that must have been tested and verified in order to have relevance to the facts. There are various steps in deductive logic (identify the problem,defining the technical terms, deducing hypotheses and testing or verification of hypotheses )
    Advantages:
    1. Deductive method is easy to comprehend : Looking at the law of utility, law of demand and other theories,it is a self evident that we can easily draw conclusions from the theories
    2. It gives accruacy and exactness: In generalisation, deductive logic gives a very high standard of precision in abstract economic reasoning.
    Disadvantage:
    1. The deductive logic has its own drawback because of its too much abstraction, thereby having little or no connection to real

    2. Inductive: The method moves from particular to general reasoning, it is carried out in two forms, experimentation and statistical forms. The statistical branch of inductive reasoning plays a greater role on economic investigation, looking at the Malthusian theory of population (Rev. Thomas Malthus) he used statistics to show relationship between (food to population and population to food)
    Advantages:
    1. It is highly practical and realistic
    2. It is helpful in verifying conclusions
    Disdavantage:
    1. Collection of facts in the inductive logic is difficult and complicated.
    In conclusion, the two methods should not be used for competition but should be used to complement each other in the discipline of economics.

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  119. Avatar OGENYI DEBORAH OLUCHI says:
    4 years ago

    Name: Ogenyi Deborah Oluchi
    Reg no: 20645428FA
    Email: debbyluchi01@gmail .com

    There are two basic method of analysing used by economist and dey are ;
    1) Deductive method: This is also a priori reasoning we start from unchallenged elementary or rudimentary assumptions or fact and then arrive at conclusions using logical analysis orourvown analytical abilities in the kind of reasoning, we go from general to specific.

    2) Inductive method: This type of reasoning flows from fact to theory. first, we collect information and fact and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-method Observation, experiments, statistical methods.

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  120. Avatar Onyefulu Chiamaka Lilian says:
    4 years ago

    NAME:ONYEFULU CHIAMAKA LILIAN
    MATRICULATION NUMBER: 2018/250299
    DEPARTMENT: NURSING SCIENCES
    FACULTY: HEALTH SCIENCES AND TECHNOLOGY

    QUESTIONS: METHODS OF ECONOMICS ANALYSIS

    Economic analysis: can be defined as an economic operation that involves the formulation of laws

    There are basically two methods of economics analysis
    1. Deductive method
    2. Inductive method

    DEDUCTIVE METHOD: Is also called abstract, analytical and prior method and represents an abstract approach to derivation of economics generalization through deductive logic

    STEPS USED IN DEDUCTIVE METHOD OF ECONOMICS ANALYSIS

    1. Perception of the problem: In any scientific research, the analyst must have a clear idea of the problem to be researched on. There must be liable variables in which his generalization will depend on.

    2. Precise definition of technical terms and making assumptions: This involves simple definition of various technical terms related and to be used in the analysis and this clearly states the assumptions. Assumptions maybe behavioral pertaining to the behavior of the economics variables.

    3. Deduction of hypotheses: Hypotheses are deduced from the assumptions or premises taken, Hypothesis explains relationships between factors affecting a phenomenon.

    4. Testing of deduced d hypotheses: This means checking, analyzing and lastly verification of the hypothesis, when verified it can be established as generalization.

    INDUCTIVE METHOD OF ECONOMICS ANALYSIS:- It can also be called empirical method, it serves economics generalization based on experiences and observations. It does not accommodate few observations, It can only be done when large observations has been made, it uses statistical or econometric methods.

    STEPS USED IN INDUCTIVE METHOD OF ECONOMICS ANALYSIS

    1. Perception of the problem: In any scientific research, the economist must have a clear idea of the problem-to be researched on. There must be liable variables in which his generalization will depend on.

    2. Precise definition of technical terms and making assumptions: This involves simple definition of various technical terms related and to be used in the analysis and this clearly states the assumptions. Assumptions can also be called postulate

    3. Collection of data: There will be collection of data about the variables related to the problems, as to gather large observations for the analysis.

    4. Processing of data collected: Finding out the relations between variables and doing some preliminary thinking ways to relate and the variables.

    5. Deduction of hypotheses: Hypotheses are deduced from the assumptions or premises taken, Hypothesis explains relationships between factors affecting a phenomenon, it shows clearly the relationship that correlates.

    6. Testing of deduced d hypotheses: This means checking, analyzing and lastly verification of the hypothesis, when verified it can be established as generalization.

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  121. Avatar EZE JULIET SOBECHUKWU. DEPARTMENT OF ECONOMIC. REG NO: 21340625CA says:
    4 years ago

    METHODS OF ANALYSIS USED BY ECONOMISTS.
    These are the deductive and inductive method.
    1.Deductive method: is also called priori method, aimed at testing theories and it represents an abstract approach to the derivation of economics generalizations. Sometimes this approach is informally called a top down. it is associated with quantitative research. Deductive involves;
    1. Selection or perception of the problem
    2. The formulation of assumptions on the basis of which the problem is to be explored.
    3. The formulation of hypothesis through the process of logical reasoning, whereby influences are drawn.
    4. Verifying the hypothesis.
    Deductive method has its negative and positive sides; the positive: it is real, simple, Powerful, exact, indispensable and universal.The negative side: it is an unrealistic assumption, incorrect verifications, abstracts method. The supply and demand analysis is an example of deductive reasoning because it comprises of generally accepted principles about supply and demand. In conclusion, deductive method starts with a generally accepted principle and proceeds to the specific.
    2. Inductive method: this concept is normally based on claims that knowledge is built primarily from an observer’s experiences and interactions with phenomena. Inductive research begin with a research question and the collection of empirical data which are used to generate hypothesis and theory. In inductive method we use econometrics packages to run experiments such as E-views, STdata etc.
    The method of processing the data collected and finding out what relates between the variables that actually holds.This will result in the development of a further refined and tested method known as statistical method. Inductive reasoning begins with specific observations, patterns are drawn from the observations and then generalized, the generalization are then combined to form a general conclusion.

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  122. Avatar OGUANYA CHIDERA FAITH says:
    4 years ago

    NAME. OGUANYA CHIDERA FAITH
    DEP ECONOMICS
    REG NO.21462736DA
    chideraoguanya@gmail.com

    BASIC METHODS OF ECONOMIC ANALYSIS

    1. Deductive method.
    2. Inductive method.

    Deductive- also known as the abstract method, analytical approach and a priori method. It represents an abstract approach to the derivation of economic generalization and theories. The principles of deriving economic generalizations through deductive logic are (a) defining precisely the technical terms and making approapiate assumptions often called postulates or premites.then the deducing hypothesis, that is deriving conclusion from the premises through the process of logical reasoning and finally the testing of hypothesis deduced.

    2. Inductive- this is also called empirical method. This method derives economic generalizations on the basis of experience and observations. In this method, dedailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalizations which follows from the observations collected. The steps here are (a) Experimentation….(b) observation and statistical or econometric method.

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  123. Avatar Adimachukwu oluchukwu ekpereamaka says:
    4 years ago

    DEPARTMENT :PHILOSOPHY.
    1) Deductive method it also called a priori reasoning.it can be unchallenged elementary or rudimentary assumption or facts that arrive at a conclusions using a logical analysis or our own analytical reasoning.in this kind of abilities, we go from general to specific stages of deductive reasoning which are observation of issue,Making the theory,testing the hypothesis using more observation.The advantages of these method is that it doesn’t involve the use of complex 2)Indeductive method :it flows from facts to theory.We first collect information and facts then move towards providing evidence using economic theory and facts .this method formulates principles using the sub -methods. Advantages of Indeductive method is that,it based on facts and realistic and reliable theories.

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  124. Avatar Ogbodo Johnson chibuike Pure and Industrial chemistry 2019/245084 says:
    4 years ago

    Methods of Economic Analysis
    Some of the most important methods of economic analysis are as follows:
    1. Deductive Method
    2. Inductive Method.
    Economic generalizations describe the laws or statements of tendencies in various branches of economics such as production, consumption, exchange and distribution of in­come. In the view of Robbins, economic generalizations or laws are statements of uniformities which describe human behavior in the allocation of scarce resources between alternative ends.
    The generalizations of economics like the laws of other sciences, state cause and effect relation­ships between variables and describe those economic hypotheses which have been found consistent with facts or, in other words, have been found to be true by empirical evidence. But a distinction may be drawn between a generalization (law) and a theory.
    A law or generalization just describes the relationship between variables; it does not provide any explanation of the described relation. On the other hand, a theory provides an explanation of the stated relation between the variables, that is, it brings out the logical basis of the generalization. An economic theory or a model derives a generalization through process of logical reasoning and explains the conditions under which the stated generalization will hold true.
    1. Deductive Method:
    Genera
    We shall first explain the deductive method of deriving economic generalizations. The deductive method is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalizations and theories.
    In any scientific enquiry, the analyst or theorist must have a clear idea of the problem to be enquired into. He must know the significant variables regarding whose behavior and interrelationship he wants to derive generalizations. The perception of the problem is by no means an easy task.
    (a) Definition of Technical Terms and Making of Assumptions:
    The next step in the process of deriving economic generalizations is to define precisely and unambiguously the various technical terms to be used in the analysis as well as to state clearly the assumptions he makes to derive generalizations.
    As mentioned above, assumptions may be behavioral pertaining to the behavior of the economic variables or they may be technological relating to the state of technology and the factor endowments. The crucial assumptions are made on the basis of observations or introspection.
    A crucial assumption that has been taken in economics is that consumers try to maximize their satisfaction and producers try to maximize their profits. Likewise, it is assumed that investors try to minimize their risk and maximize the expected rate of their profits. Some of the assumptions are made merely to simplify the analysis and may not be quite realistic.
    The actual economic world is quite complex and full of details in which numerous factors play a part and act and interact on each other. The introduction of simplifying assumptions is quite necessary in order to bring out the importance of really significant factors having a bearing on the problem under investigation.
    It, therefore, follows that each and every assumption made by a theory may not be realistic. The crucial factor in building up a valid theory is whether its predictions are corroborated by the facts in the world. A correct scientific theory or generalization must be expressed in the form of a hypothesis that is conceivably refutable.
    (b) Deducing Hypotheses through Logical Deduction:
    The next step in deriving generalizations through deductive logic is deducing hypotheses from the assumptions or premises taken. A hypothesis describes relationship between factors affecting a phenomenon; it establishes the cause and effect relationship between the variables having a bearing on the phenomenon.
    Then, through logical process, hypothesis is deduced from the assumptions made. This logical reasoning may be carried out verbally or it may be conducted in symbolic terms using the language of what is known as symbolic logic.
    The geometric or graphic technique is also usually employed to deduce the hypotheses about the relationship between factors. Besides, the process of logical deduction may be done with the help of more formal mathematics.
    These days in almost all branches of modern economics, mathematics as tool of analysis for deriving economic theories and generalisations is being increasingly used. The use of mathematics in economic analysis proves extremely useful where geometrical methods make the analysis more complicated to comprehend. Besides, the use of mathematical method makes the derivation of economic hypotheses more rigorous and exact.
    It is worthwhile to note that in deriving analytically sound hypotheses, one should guard against committing logical fallacy in the process of logical deduction. For instance, it is inappropriate to conclude that A must be the cause of B, if A happens to precede B.
    Further, it is logically fallacious to argue that since there exists a high degree of correlation between the two factors, say between the supply of money and the general price level, the former must be the cause of the latter, unless the causation must be logically developed.
    (c) Testing or Verification of Hypotheses:
    Hypotheses obtained above have to be verified before they are established as generalizations or principles of economics. For the verification of hypotheses, economists cannot make controlled experiments, because they have to discover unifor­mities in behavior patterns of man.
    We cannot make experiments with man under controlled con­ditions, such as in laboratories as physical scientists make experiments with inanimate objects of nature and biologists make these with animals and plants. Therefore, economists have to rely on uncontrolled experience and observations.
    The information regarding uncontrolled experience about the behaviour patterns concerning variables about man and the economy are quite amply available. The reliance by economists on uncontrolled experiences, however, does increase the number of observations required to verify the hypotheses or to establish the generalizations.
    Besides, the need to rely on uncontrolled experiences complicates the analysis and requires that facts must be carefully interpreted to discover successfully the significant relationship between relevant economic variables.
    It may, however, be pointed out that in spite of the complexities and difficulties involved in verifying economic hypotheses through successful analysis and proper interpretation of uncontrolled experiences and observations, several useful and significant generalizations have been established in economics.
    In the field of microeconomics, the well-established generalizations relate to the in­verse relationship between price and quantity demanded, the direct relation between price and quan­tity supplied, the tendency of the price of the product to be equal to the marginal cost under condi­tions of perfect competition, and the tendency for the wages to be equal to the value of marginal product under conditions of perfect competition and several others.
    In the field of macro-econom­ics, established generalizations relate to the determination of the level of national income by aggre­gate demand and aggregate supply in a capitalist economy, the multiple increase in income and employment as a result of a given initial increase in investment depending upon the size of marginal propensity to consume, the dependence of the amount of investment on the marginal efficiency of capital and the rate of interest and several others.
    It is worth noting that the absence of controlled experiments in economics affects the exactness of economic laws and generalizations.’ This means that the generalizations in economics are not as exact as those of physical sciences and they are therefore not universally applicable under all cir­cumstances. Because of the absence of controlled experiments economic generalizations lack in firmness, they are not easily accepted by all and even generalizations that are refuted by empirical evidence are not abandoned for good by all.
    In regard to flaming and testing of economic generalizations, two related distinctions must be borne in mind. First, functional relationship between economic variables and a historically se­quence of events must be distinguished.
    For instance, the law of demand stating inverse relationship between price and quantity demanded does not become invalid in view of the fact that both prices and quantities sold of many commodities increase during boom periods. This is because certain other forces such as a rise in aggregate investment demand operates which causes increase in both the price and quantity sold during a boom period.
    Second, prediction of a generalization to show its validity must be carefully differentiated from the forecasting of future events; actual events may not exactly come about as predicted by a generalization and yet that generalization may be correct. This is because, as mentioned above, the actual course of events is governed by several other factors assumed by a generalization which remains constant under the qualification “other things remaining the same.
    In the absence of controlled experiments, for the verification of their theories economists have to rely on the direct observations of events in the real world. By direct observations we mean. gathering of information personally or reliance on comparatively unprocessed material such as files of business firms and government departments, locally published reports, proceedings of representative assemblies, newspapers, advertisements, market reports, auction notices and the like.
    In order to prove the validity of hypotheses and therefore to establish laws or generalizations, importance of direct observations cannot be underrated.
    Testing of Economic Hypotheses through Statistical Methods:
    In recent years a very useful method to test economic hypothesis has been developed. This is the statistical method or what is now popularly called econometric method. The statistical or econometric method to verify and establish the theoretical generalizations occupies an important place because of the limited applicability of controlled experimentation in economics.
    The various statistical methods such as regression analysis have been developed to empirically test the economic hypotheses on the basis of collected economic data. The merit of econometrics is that the degree of functional relationship between relevant economic variables in precise quantitative terms is obtained by it and also the level of significance of the results can also be estimated.
    Recently, econometric method has been used to establish the precise relationships between money supply and the price level, quantity of money and the national income, consumption and income, capital accumulation and rate of economic growth and so forth.
    It may, however, be pointed out that statistical analysis or econometrics alone cannot be used to derive and establish economic principles and theories. Economic hypotheses or theories must be developed logically before we can meaningfully use statistical analysis to test and verify them.
    Indeed, a theory or hypothesis is needed beforehand for selecting the relevant facts and data regarding relevant variables which can be subjected to empirical testing through the methods of econometrics
    Facts come to mean something only as ascertained and organized in the frame of a theory. Indeed, facts as part of scientific knowledge have no existence outside such a frame Questions must be asked before answers can be obtained and, in order to make sense, the questions must be part of a logical coordinated attempt to understand social reality as a whole. A non- theoretical approach is, in strict logic, unthinkable. Principal steps followed in formulation of economic theories and generalizations through de­ductive method can be summarized as given below.
    Merits and Demerits of Deductive Method:
    The deductive approach to establish economic generalizations was extensively used by Classi­cal and Neo-Classical economists such as Ricardo, Malthus, Senior, J. S. Mill, Marx, Marshall and Pigou. It still remains popular with modem economists as it has several merits. First, useful math­ematical techniques can be employed to derive laws and theories of economics.
    With the aid of rigorous mathematical logic, economic theories can be developed through the process of deduction which can successfully explain economic phenomena. Secondly, through deductive logic useful economic theories can be derived without the tenuous and detailed collection and analysis of data which are required under the inductive method.
    Thus, as compared to inductive method, deduction is less time-consuming and less expensive. Thirdly, in view of the limited scope for controlled experimentation in economics, the method of deduction is extremely useful method of constructing economic theories. This is because several forces act simultaneously on an economic phenomenon and it is not possible to eliminate some of these by means of a controlled experiment.
    This indicates the crucial importance of deductive logic for building up economic principles or theories. Fourthly, the use of sophisticated mathematical methods in the deductive approach enables the economists to introduce accuracy and exactness in economic principles and theories.
    In spite of the above-mentioned merits, shortcomings of the deductive approach should not be overlooked. The use of deductive method in deriving economic generalizations requires the use of a high-level competence in logic and theoretical abstraction.
    Besides, most economists have preconceived notions or biases on several economic issues. If sound and valid economic generalizations are to be established, economists must dissociate themselves from normative preconceptions and biases in their logical process of deducing economic generalizations.
    Further, a great demerit of deductive approach is that with it highly sophisticated theoretical models based on highly unrealistic assumptions may be developed which do not have any operational significance. Indeed, such highly irrelevant analytical models with little empirical content and incapable of being used for policy formulation have in fact been developed by economists. Such models are no more than mere “intellectual toys”. If economics is to serve as an instrument of social betterment, building of such theoretical models having no opera­tional use should be avoided.
    Lastly, in the derivation of economic hypotheses and conclusions through deductive logic, as­sumptions play a crucial role. If the assumptions made are such that when on removing them, economic hypothesis based on them is refuted, then making of these assumptions is not valid.
    Thus, one who uses deductive approach should always keep in mind to what extent the validity of generalizations derived depends on the assumptions made. For instance, the Keynesian macroeconomic analysis is based upon the assumption of a depression-ridden capitalist economy with a lot of excess productive capacity.
    Therefore, a positive harm has been done in applying the Keynesian theories in the context of developing countries such as ours where the assumptions made by Keynes do not hold good. Hence, mere “deductive arm-chair analysis” should be avoided, if the scientific character of economics is to be maintained.
    2. Inductive Method:
    The inductive method which is also called empirical method derives economic generalizations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalizations which follow from the observations collected.
    But, it is worth mentioning that the number of observations has to be large if it can yield a valid economic generalization. One should not generalize on the basis of a very few observations. There are three ways which can be used for deriving economic prin­ciples and theories.
    They are:
    • Experimentation,
    • Observations,
    • statistical or econometric method.
    As has been mentioned above, the experimentation, that is, the use of contrived experi­ments is of limited applicability in economics. First, unlike natural sciences which are concerned with analyzing the behavior of either inanimate objects or obedient animals such as rats and rabbits under the influence of chloroform, economics deals with the behavior of man who is quite fickle, wayward and unmanageable.
    Besides, man cannot tolerate the idea of being experimented upon, either individually or collectively. Secondly, an economic phenomenon is the result of multiplicity of factors and causes acting and interacting upon each other.
    Therefore, economic phenomenon does not repeat itself in the same uniform pattern. Numerous factors acting on an economic phe­nomenon ‘disturb’ it and make its exact repetition unlikely. Thus, as compared with the natural phenomena, economic phenomena are of less uniform pattern, less repetitive and more variable.
    Thirdly, economists study the economic phenomena in which pressure groups such as employ­ers’ associations, trade unions, farming lobby, political parties with their different ideologies play a crucial part and their activities render it difficult to make controlled experiments in the economic world. However, in spite of these difficulties, experimental method can be used in some fields.
    For instance, experiments have been conducted to find out which law of production is valid, that is, whether law of diminishing returns, law of constant returns or law of increasing returns operates in the real world. Besides, public undertakings or big industrial firms often try to assess the effect of the changes in the prices of their products on the demand for it and thus find out the demand elastic­ity of their products.
    Various Steps in Inductive Method:
    Various steps are gone through in developing economic theories through inductive method. The first step, as in the deductive approach, is to identify the problem. The second step is defining technical terms and variables related to the problem.
    It is the next step which is peculiar to the inductive method, namely, the collection of data about the variables related to the problem and doing some preliminary thinking about the possible functional relationships between the relevant variables.
    The next important step in the construction of economic theories in this method is the processing of data collected and finding out what relations between the variables actually hold good. From this, a theory is developed which can be further refined and tested through statistical methods.
    Once the theory has been developed one can make predictions on its basis, as is done in the deductive approach. If predictions of theory are in agreement with the facts and actual behavior of the economy, then a new reliable theory has been developed. If a new theory explains “how things work” better than the existing ones, it replaces them.
    However, if predictions are in conflict with actual facts and behavior of the economy, either the theory is discarded or fresh efforts are made to modify and refine it by collecting more data and processing them. The various steps in the construction and development of economic theories through inductive method are illustrated in Figure.
    Evaluation of Inductive Method:
    As has been explained above, observations of facts through collection of detailed data and the use of statistical methods to arrive at economic generalizations establishing relationship between facts are being increasingly made.
    Some of the recent researches in the field of macroeconomics, such as the nature of consumption function describing the relation between income and consump­tion, the principle of acceleration describing the factors which determine investment in the economy have been obtained through the use of mainly inductive method.
    However, it needs to be emphasized again that the use of induction or empirical method is not of much value if it is not supported by the economic hypothesis or theory developed by deductive logic. The inductive method can at best be used to empirically test the theory or hypothesis as to whether it is consistent with or refuted by facts.
    The inductive method has another limitation in that there is a great risk of conclusions being drawn from insufficient data. To obtain generalizations through inductive method, one should take care that sufficient number of observations or data has been taken into account.
    Besides, the collection of data itself is also not an easy task. And a researcher who wants to employ the inductive method to arrive at generalizations must have good knowledge of statistical methods, that is, he must know the art of collecting, processing and inter­preting data. It is obvious that as compared with the deductive method, the inductive method is time-consuming and expensive.
    Conclusion: Integration of Two Methods:
    Now, the controversy which existed among the earlier economists as to whether deductive or inductive approach is more appropriate in developing economic theories and principles has been resolved. The modem viewpoint in this regard is that both are needed for the proper development of scientific economic theories. Indeed, the two are complementary rather than competitive.
    The modern economists first derive economic hypotheses through the process of logical deduction and then empirically test them through statistical or econometric methods. Marshall rightly pointed out, “induction and deduction are both needed for scientific thought as the right and left foot are both needed for walking.
    Empirical studies made through statistical or inductive method without a theoretical hypothesis to serve as a guide for the selection of data are quite useless. The derivation of economic generalisations through the approach of deductive logic without empirically testing them through inductive method is also not quite proper.
    Empirical studies made in inductive ap­proach also bring to light significant economic facts or phenomena which require analytical expla­nation through deductive logic. For instance. Farm Management Studies in India in the mid- fifties led to the discovery of a fact that output per acre on the small-sized farms is higher than that on large farms.
    This led to the various theoretical explanations of the phenomenon observed in the empirical studies. On the other hand, a theory or hypothesis is first developed through deductive logic from some assumptions and then predictions based on the hypothesis are tested through inductive or statistical method. If the predictions are found to be constant with facts, the hypothesis or theory stands proved and if the predictions of the theory are found to be inconsistent with facts, it stands rejected.

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  125. Avatar REMIGIUS CHIDEBERE RICHARD says:
    4 years ago

    NAME: REMIGIUS CHIDEBERE RICHARD
    REG NUMBER: 21410757AF
    EMAIL: bcrichardremigius@gmail.com
    FACULTY: SOCIAL SCIENCE
    DEPARTMENT: ECONOMICS

    METHODS OF ECONOMICS ANALYSIS
    Basically Economic Analysis involves the formulation of laws and generalizations through Two {2} Methods:
    {1} Deductive Method
    {2} Inductive Method

    Deductive Method
    This is also called a priori or top-down reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions (build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific.

    The Stages in Deductive Method are listed and explained belove:

    1. Formulation of the Problem:
    In any scientific study, the analyst must have a clear idea of the nature of the problem to be investigated (or enquired into). It is absolutely essential for the analyst or theorist to acquire knowledge of the relevant variables; the variables about whose behaviour and interrelationship he wants to make generalisations. The perception of the problem is in most cases a complex exercise.

    2. Definition of Terms and Formulation of Assumptions:
    Since every subject has its own language, it is necessary to define certain technical terms associated with the analysis as the second step. It is also necessary to make assumptions.

    The assumptions maybe of different types, viz., technological, relating to the state of technology and factor endowments, or behavioural, relating to the actions of economic agents like consumers, factor owners, and producers.
    It is not at all necessary for every assumption to be realistic. The most crucial factor in theorising is whether the predictions made by the theory are supported by the facts or observations. In the words of R. G. Lipsey: “The scientific approach to any issue consists in setting up a theory that will explain it and then seeing if that theory can be refuted by evidence.” The same point has been made by the Nobel Laureate economist Milton Friedman. He has explained the view that one should not give undue importance to the ‘realism’ of assumptions. What is most important, from the viewpoint of scientific theory, is whether it enables us to make accurate predictions.

    3. Formation of Hypothesis:
    The third step in making generalisations through process of logical deduction is to form a hypothesis on the basis of the assumptions made. A hypothesis is a provisional statement the truth of which is not known to us. A hypothesis just describes the relationship among factors affecting a particular phenomenon. Differently put, it establishes the cause-and-effect relationship among those variables (dependent and independent) having direct bearing on the

    4. Hypothesis Testing:
    The final step involved in the deductive method is hypothesis testing. Hypothesis testing refers to the development and use of statistical criteria to aid decision making about the validity of a hypothesis in uncertain conditions. In any decision about the validity of a hypothesis there is always a chance of making a correct choice and a risk of making a wrong choice.

    Hypothesis testing is concerned with evaluating these chances and suggesting criteria that minimise the likelihood of making wrong decisions. Therefore, hypotheses deduced through a process of logical reasoning have to be verified. Otherwise, it is not possible to establish them as generalisations or principles of economic science.

    For the testing or verifications of hypothesis economists cannot carry out controlled experiments. Therefore, economists are forced to carry out un­controlled experiments or rely on past observations. The economic system itself generates necessary information about the behaviour pattern of hu­man beings. Two major problems crop up as a result of uncontrolled experiments.

    Advantages of Deductive Method
    It is a simple method and it does not involve the use of any complex software analysis, etc. only simple deductive logic is required. This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    Disadvantages of Deductive Method
    Basically, in this method of reasoning we start from assumptions, and, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions.

    {2} Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods: Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn.

    The stages in this method are:
    {1} Observation
    {2} Formulation of a hypothesis
    {3} Generalizing principles
    {4} Verifying against actual facts.

    Advantages of Inductive Method
    {1} Since it is based on facts it is more realistic and reliable.

    {2} Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.

    {3} Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of Inductive Method
    {1} If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.

    {2} It is a time-consuming process and thus expensive as well.

    {3} The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

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  126. Avatar ORJI Harrison Chukwuemeka says:
    4 years ago

    NAME: Orji Harrison Chukwuemeka
    REG NUMBER: 21841174FA
    EMAIL: emekavalentine20@gmail.com

    METHODS OF ECONOMICS ANALYSIS

    Deductive Method
    This is can also be defined as priori reasoning. It start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Inductive Methods

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

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  127. Avatar Ani Chinenye Christianah says:
    4 years ago

    Name:Ani Chinenye Christianah
    Department: Philosophy
    Reg no.:21347085CA
    Email: chinenyeani122@yahoo.com
    Economic analysis is the evaluation of costs and benefits,it is the ranking of projects based on economic viability to aid a better allocation of resources.
    They are two basic methods of economic analysis, namely Deductive and Inductive methods of analysis.
    1).Deductive Method; Deductive reasoning means being able to get information from two or more statements and draw a logical conclusion.Deductive reasoning moved from generalities to specific conclusions.
    There are principal steps used in the derivation of economic analysis through deductive method and they are;
    A). perception of the problem to be inquired into
    B). Refining of the technical terms and making appropriate assumptions
    C). Deducing hypothensis which is deriving conclusions from the premises through logical reasoning
    D). Testing of the hypothensis that has been deduced.

    2). Inductive Methods of Analysis
    Inductive Reasoning is a logical thinking process in which multiple premises that are believed to be true are combined to draw a conclusion .It works in the opposite of deductive reasoning.Inductive method unlike deductive is based on Observations.
    There are three ways that can be used for deriving economics principles and they are; Experiments, Observations and Econometric methods.

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  128. Avatar Name: Ogbozor Chimakaobimdi Gladys Matric number: 2020/243150 Department: Public Administration Course code: Eco101 says:
    4 years ago

    WHAT ARE THE BASIC METHODS OF ANALYSIS USED BY ECONOMIST? BRIEFLY AND CONVINCING DISCUSS EACH OF THEM
    The basic method of analysis used by economists are;
    1-Deductive method
    it can also be known as the analytical abstract,a prior method or hypothetical method,its derives the conclusion From fundamental assumption or from the truth.establish by other methods;its involves the process of reasoning from certain law or Principe which are assumed to be true to the analysis of the facts.The inference are drawn which are verified against observe facts.

    2- Inductive Method
    In this method the specific observation and measure,its bring to detect patterns and regulations formulate some tentative hypotheses that we can explore and finally end up developing some general conclusion or theories.in this case also the gulf can be reduce by economists that proceed from a practical angle to problem of science between practice and it’s done by two forms, experimentation and statiscal forms.

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  129. Avatar Ani Chinenye Christianah says:
    4 years ago

    Name:Ani Chinenye Christianah
    Department: Philosophy
    Reg no.:21347085CA
    Email: chinenyeani122@yahoo.com
    Economic analysis is the evaluation of costs and benefits,it is the ranking of projects based on economic viability to aid a better allocation of resources.
    The deductive method is also known as abstract, analytical and priori method and it represents an abstract approach to the derivation of economic generations.
    They are two basic methods of economic analysis, namely Deductive and Inductive methods of analysis.
    1).Deductive Method; Deductive reasoning means being able to get information from two or more statements and draw a logical conclusion.Deductive reasoning moved from generalities to specific conclusions.
    There are principal steps used in the derivation of economic analysis through deductive method and they are;
    A). perception of the problem to be inquired into
    B). Refining of the technical terms and making appropriate assumptions
    C). Deducing hypothensis which is deriving conclusions from the premises through logical reasoning
    D). Testing of the hypothensis that has been deduced.

    2). Inductive Methods of Analysis
    Inductive Reasoning is a logical thinking process in which multiple premises that are believed to be true are combined to draw a conclusion .It works in the opposite of deductive reasoning.Inductive method unlike deductive is based on Observations.
    There are three ways that can be used for deriving economics principles and they are; Experiments, Observations and Econometric methods.

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  130. Avatar DEBORAH UZODIEGWU says:
    4 years ago

    Name: uzodiegwu Deborah chinelo
    Reg no: 20874513EA
    Dep: sociology and anthropology
    Email: duzodiegwu@gmail.com
    Methods of economic Analysis
    1. Deductive method
    2. Inductive method
    Deductive method: deductive method is the theoretical deduction that is considered to be true without being based on observations and experience .it is also know as analytical, abstracts and priori methods
    Steps used in deriving generalisation in deductive method
    1. Perception of the problem to be enquired into
    2. Finding precisely the technical terms
    3. Deduction of hypothesis
    4. Testing the hypothesis

    Inductive methods: inductive methods derives economic generalisation on the basis of experience and observations. Inductive methods is also know as empirical methods and it makes use of econometric packages to run their experiment.
    Theories used in generalisation of inductive methods
    1. Experimentation
    2.observations
    3. Statistical or econometric methods

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  131. Avatar Chukwuma ogochkwu Susan says:
    4 years ago

    Name. Chukwuma Ogochukwu susan
    Course. Eco 101
    Department. Combined social science
    Reg number. 2020/242910

    The method of Economics analysis

    Deductive method
    Inductive method

    Deductive method is the analytical abstract or prior method, it derives conclusion from general truth, takes few general principles and applies conclusions.

    Steps in deductive method
    1perception of the problem to be inquired into
    2 Defining of terms
    3 Deducing hypothesis
    4 Testing of hypothesis

    Inductive method involves the process of reasoning from particular fact to general principle, it derives economic generalization on the basis of experimentations, observations and statistical methods

    Steps in inductive method
    1observation
    2Formation of hypothesis
    3Generalization
    4.Verification.

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  132. Avatar Anelechukwu precious kelechi says:
    4 years ago

    Anelechukwu precious kelechi
    Reg number: 21268671CF
    Email: preciousanelechukwu@gmail.com

    Methods of economics Analysis are;
    1)Deductive analysis
    2)Inductive analysis

    1) Deductive analysis: This is concerned with ” developing hypothesis (or hypotheses) based in existing theory and then designing a research strategy to test the hypothesis
    It has been stated that Deductive means reasoning from the particular to the general. If a casual relationship or link did obtain on more general circumstances
    Deductive approach can be explained by the means of hypothesis,which can be derived from the prepositions of the theory .In other words Deductive approach is concerned with deducting conclusions from premises or prepositions. Deductive begins with an expected pattern ” that is tested against observations whereas induction begins with observations and seeks to find a pattern within them”.

    2) Inductive analysis: This refers to approaches that primarily use detailed readings of raw data to derive concepts,themes or a model through interpretations made from the raw data by a researcher. The general Inductive approach provides an easily used and systematic set of procedures for analyzing qualitative data that can produce reliable and valid findings. Although the general Inductive approach is not strong as some analytic strategies for theory or model development,it does provide a simple, straight forward approach for deriving findings in the context of focused evaluation questions. Many evaluation are likely to find using a general Inductive approach less complicated than using other approaches to qualitative data analysis.

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  133. Avatar ANIH FORTUNE KENECHUKWU says:
    4 years ago

    Name: ANIH FORTUNE KENECHUKWU
    Reg no:20631084EF
    Faculty: Vocational and Technical Education
    Department: Business Education
    Email: fortunekenny111@gmail.com

    METHODS OF ECONOMIC ANALYSIS
    1. 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) Experimentations (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 nonentity 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 common sense.
    Steps of Inductive Method
    i. Observation
    ii. Formation of hypothesis
    iii. Generalization
    iv. Verification
    Merits of Inductive Method
    i. It is based on facts as such the method is realistic.
    ii. In order to test the economic principles, method makes statistical techniques.
    iii. Induction method also helps in future investigation.
    Demerits of Inductive Method
    i. If conclusions drawn from insufficient data, the generalizations obtained may be faulty.
    ii. The inductive method is time-consuming and expensive.

    2. 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.
    Steps of Deductive Method
    *Perception of the problem to be inquired into
    *Defining of terms
    *Deducing hypothesis from the assumptions
    *Testing of hypothesis
    Merits of Deductive Method
    i. This method is near to reality. It is less time consuming and less expensive
    ii. The use of mathematical techniques in deducing theories of economics brings exactness and clarity in economic analysis
    iii. The method is simple because it is analytical

    Demerits of Deductive Method
    i. The deductive method is simple and precise only if the underlying assumptions are valid
    ii. The deductive method is highly abstract. It require; a great deal of care to avoid bad logic or faulty economic reasoning

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  134. Avatar Onah Marcel Onyebuchi 2019/250557 says:
    4 years ago

    Economic analysis involves the formulation of laws and generalization and it is achieved through the methods of Deductive Analysis and Inductive Analysis. The Deductive method also referred to as priori starts from unchallenged elementary or rudimentary assumptions and then arrives at conclusions using logical analysis or our analytical abilities. This is achieved through different stages which includes; (I) Observation of task, (ii) Making the hypothesis, and (iii) Testing the hypothesis using more observation. It is a simple method that doesn’t involve the use of any complex software analysis. Inductive method of analysis is the type that flows from facts to theory. Informations and facts are first collected and then evidence are provided using economic theory and facts. It involves other methods , namely ; observations, experimentation, and statisticalmethods in formulation of principles. Since it is based on facts, it is more realistic and reliable.

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  135. Avatar Enete victor nnabuike Reg no: 2019/243349. Dept: pure and industrial chemistry says:
    4 years ago

    The Basic Methods of Economic Analysis used by economists are the Deductive Method and the Inductive Method.
    Economic generalizations describe the laws or statements of tendencies in various branches of economics, such as production, consumption, exchange, and distribution of income. In the view of Robbins, monetary generalizations or laws are statements of uniformity which describe human behavior in the allocation of scarce resources between alternative ends.
    The generalizations of economics, like the legal guidelines of other sciences, state cause and effect relationships between variables and describe these economic hypotheses which have been found consistent with facts or, in different words, have been found to be true by empirical evidence. But a distinction may also be drawn between a generalization (law) and a theory.
    1. Deductive Method of Economic Analysis:
    The deductive method is also called the abstract, analytical, and a priori method, and represents a summary approach to the derivation of economic generalizations and theories.
    The principal steps in the process of deriving monetary generalizations through deductive logic are:
    (a) Perception of the Problem:
    In any scientific enquiry, the analyst or theorist must have a clear idea of the hassle to be enquired into. He must know the significant variables regarding whose conduct and interrelationship he wants to derive generalizations. The perception of the problem is by no means an easy task.
    (b) Definition of Technical Terms and Making of Assumptions:
    The next step in the process of deriving economic generalizations is to outline precisely and unambiguously the various technical terms to be used in the analysis, as well as to state clearly the assumptions he makes to derive generalizations.
    Assumptions may be behavioral pertaining to the behavior of the financial variables or they may be technological relating to the state of technology and the endowments. The crucial assumptions are made on the basis of observations or introspection.
    (c) Deducing Hypotheses through Logical Deduction:
    The next step in deriving generalizations via deductive logic is deducing hypotheses from the assumptions or premises taken. A hypothesis describes the relationship between factors affecting a phenomenon; it establishes the cause and impact relationship between the variables having a bearing on the phenomenon.
    Then, through a logical process, a hypothesis is deduced from the assumptions made. This logical reasoning may be carried out verbally or it may be performed in symbolic terms using the language of what is known as symbolic logic.
    The geometric or graphic approach is also usually employed to deduce hypotheses about the relationship between factors. Besides, the process of logical deduction may be performed with the help of more formal mathematics.
    (d) Testing or Verification of Hypotheses:
    Hypotheses obtained above have to be verified earlier than they are established as generalizations or principles of economics. For the verification of hypotheses, economists can not conduct controlled experiments due to the fact that they have to discover unifor­mities in the behavior patterns of man.
    We can not do experiments with man under controlled conditions, such as in laboratories, as physical scientists do experiments with inanimate objects of nature and biologists do them with animals and plants. Therefore, economists have to rely on uncontrolled experience and observations.
    The information involving uncontrolled experience about the behavior patterns concerning variables of man and the economy is pretty amply available. The reliance by economists on uncontrolled experiences, however, does increase the number of observations required to verify the hypotheses or to set up the generalizations.
    Merits and Demerits of the Deductive Method:
    With the aid of rigorous mathematical logic, economic theories can be developed through the process of deduction, which can efficiently explain economic phenomena. Secondly, through deductive logic, beneficial economic theories can be derived without the tenuous and detailed collection and evaluation of data which is required under the inductive method.
    Thus, as compared to the inductive method, deduction is less time-consuming and less expensive. Thirdly, in view of the limited scope for controlled experimentation in economics, the method of deduction is an extremely beneficial method of constructing economic theories. This is because a number of forces act simultaneously on an economic phenomenon and it is not possible to dispose of some of these by means of a controlled experiment.
    This indicates the vital importance of deductive logic for building up economic ideas or theories. Fourthly, the use of sophisticated mathematical methods in the deductive approach enables economists to introduce accuracy and exactness into monetary principles and theories.
    In spite of the above-mentioned merits, the shortcomings of the deductive approach should not be overlooked. The use of deductive techniques in deriving economic generalizations requires the use of high-level competence in logic and theoretical abstraction.
    Further, a great demerit of the deductive approach is that, with it, tremendously sophisticated theoretical models based on highly unrealistic assumptions may additionally be developed which do not have any operational significance. Indeed, such highly irrelevant analytical models with little empirical content and incapable of being used for policy formulation have in fact been developed by economists. Such fashions are no more than mere “intellectual toys”. If economics is to serve as an instrument of social betterment, the building of such theoretical models having no operational use should be avoided.
    Lastly, in the derivation of monetary hypotheses and conclusions through deductive logic, assumptions play a crucial role. If the assumptions made are such that when removing them, economic speculation based on them is refuted, then the making of these assumptions is not valid.
    Thus, one who uses a deductive approach must always keep in mind to what extent the validity of generalizations derived depends on the assumptions made. For instance, the Keynesian macroeconomic evaluation is based upon the assumption of a depression-ridden capitalist economy with a lot of excess productive capacity.
    Therefore, positive damage has been done in applying the Keynesian theories in the context of developing countries such as ours, where the assumptions made by Keynes do not hold well. Hence, mere “deductive arm-chair analysis” should be avoided, if the scientific personality of economics is to be maintained.
    2. Inductive Method of Economic Analysis
    The inductive method, which is also called the empirical method, derives monetary generalizations on the basis of experience and observations. In this method, detailed facts are collected with regard to a certain economic phenomenon and an effort is then made to arrive at certain generalizations which are observed from the observations collected.
    But, it is worth mentioning that the number of observations has to be large if it can yield a legitimate economic generalization. One should not generalize on the basis of very few observations. There are three approaches which can be used for deriving economic principles and theories.
    They are:
    (a) Experimentation,
    (b) observations,
    (c) statistical or econometric methods.
    As has been mentioned above, experimentation, that is, the use of contrived experiments, is of limited applicability in economics. First, unlike herbal sciences, which are concerned with analyzing the behavior of either inanimate objects or obedient animals such as rats and rabbits under the influence of chloroform, economics deals with the behavior of man, who is quite fickle, wayward, and unmanageable.
    Besides, men can’t tolerate the idea of being experimented upon, either individually or collectively. Secondly, an economic phenomenon is the end result of a multiplicity of factors and causes acting and interacting with each other.
    Therefore, financial phenomena do not repeat themselves in the same uniform pattern. Numerous factors acting on a monetary phe­nomenon ‘disturb’ it and make its exact repetition unlikely. Thus, as compared with natural phenomena, economic phenomena are of a much less uniform pattern, less repetitive and more variable.
    Thirdly, economists study the economic phenomena in which strain groups such as employers’ associations, trade unions, farming lobby, and political parties with their different ideologies play an indispensable part. Their activities make it difficult to conduct controlled experiments in the financial world. However, in spite of these difficulties, experimental methods can be used in some fields.
    For instance, experiments have been conducted to find out which law of manufacturing is valid, that is, whether the law of diminishing returns, the law of constant returns or the regulation of increasing returns operate in the real world. Besides, public undertakings or big industrial firms frequently try to assess the effect of the changes in the prices of their products on the demand for them and thus find out the demand elastic­ity of their products.
    Various Steps in the Inductive Method:
    Various steps are taken in developing economic theories through the inductive method. The first step, as in the deductive approach, is to identify the problem. The 2nd step is defining technical terms and variables related to the problem.
    It is the next step which is peculiar to the inductive method, namely, the series of data about the variables related to the problem and doing some preliminary thinking about the viable functional relationships between the relevant variables.
    The next important step in the development of economic theories in this method is the processing of data collected and discovering what relations between the variables actually hold. From this, a theory is developed which can be refined and tested through statistical methods.
    Once the theory has been developed, one can make predictions on its basis, as is completed in the deductive approach. If predictions of the theory are in agreement with the facts and actual conduct of the economy, then a new reliable theory has been developed. If a new theory explains “how things work” better than the existing ones, it replaces them.
    Evaluation of the Inductive Method:
    As has been explained above, observations of facts through series of detailed data and the use of statistical methods to arrive at economic generalizations organising relationships between facts are being increasingly made.
    Some of the recent research in the field of macroeconomics, such as the nature of consumption feature describing the relationship between income and consumption, and the principle of acceleration describing the factors which determine funding in the economy, have been obtained through the use of mainly inductive methods.
    The inductive technique has another limitation in that there is a great risk of conclusions being drawn from inadequate data. To obtain generalizations through the inductive method, one should take care that a sufficient range of observations or data has been taken into account.
    Besides, the collection of data itself is also no longer an easy task. And a researcher who wants to employ the inductive method to arrive at generalizations has to have good knowledge of statistical methods. That is, he must know the art of collecting, processing, and inter­preting data. It is obvious that, as compared with the deductive method, the inductive method is time-consuming and expensive.

    Reply
  136. Avatar Onah Marcel Onyebuchi says:
    4 years ago

    Economic analysis involves the formulation of laws and generalization and it is achieved through the methods of Deductive Analysis and Inductive Analysis.
    The Deductive method also referred to as priori starts from unchallenged elementary or rudimentary assumptions and then arrives at conclusions using logical analysis or our analytical abilities. This is achieved through different stages which includes; (I) Observation of task, (ii) Making the hypothesis, and (iii) Testing the hypothesis using more observation. It is a simple method that doesn’t involve the use of any complex software analysis.
    Inductive method of analysis is the type that flows from facts to theory. Informations and facts are first collected and then evidence are provided using economic theory and facts. It involves other methods , namely ; observations, experimentation, and statisticalmethods in formulation of principles. Since it is based on facts, it is more realistic and reliable.

    Reply
  137. Avatar Ali Faith Chioma , Nursing sciences , 20688146CA says:
    4 years ago

    Methods of economics analysis
    1, deductive method :it is also called abstract analytical and priori method and it represents an abstract approach to the derivation of economics generalization and theories , here, we start with fundamental fact and after adding some assumptions ,we build a theory , in the method we proceed from general to particular
    Deductive methods comprises of three stages 1, observation 2,deductive reasoning 3,instance and testing by means of further observation
    Merits of deductive methods 1,it’s simple ,2,it obviates the necessity of experimentation ,3,it results in accuracy and exactness
    Demerits 1,it is based mainly on assumptions ,2,there’s too much abstraction .,3,it’s generalisation started on wrong presumptions will be dangerous when such generalization claims universal validity
    2, inductive method :in this method, economists proceed from a practical angle to problem of science to reduce the gulf between theory and practice . It is done in two ways, 1,experimentation and 2,statistical form . Facts are collected first , arranged and conclusions are drawn , then these general conclusion are further verified with reference to actual fact
    Merits of inductive method 1, it is highly practical , it describes things as they are 2, it is helpful in verifying the conclusion of the deductive methods
    Demerits of inductive methods 1, when the investigators lack a balances judgement 2,collection of facts in inductive process is highly complex and complicated job warranting extraordinary understanding to differentiate economic from non- economic factor ,3,mere induction alone will not deliver goods unless , it it supplemented by means of deductive reasoning .
    In summary the two methods have to be made use of or blended to achieve the required objective . The two methods are not competitive but complementary in nature helping invigilator

    Reply
  138. Avatar Ogbozor Chimakaobimdi says:
    4 years ago

    WHAT ARE THE BASIC METHODS OF ANALYSIS USED BY ECONOMIST? BRIEFLY AND CONVINCING DISCUSS EACH OF THEM
    The basic method of analysis used by economists are;
    1-Deductive method
    it can also be known as the analytical abstract,a prior method or hypothetical method,its derives the conclusion From fundamental assumption or from the truth.establish by other methods;its involves the process of reasoning from certain law or Principe which are assumed to be true to the analysis of the facts.The inference are drawn which are verified against observe facts.

    2- Inductive Method
    In this method the specific observation and measure,its bring to detect patterns and regulations formulate some tentative hypotheses that we can explore and finally end up developing some general conclusion or theories.in this case also the gulf can be reduce by economists that proceed from a practical angle to problem of science between practice and it’s done by two forms, experimentation and statiscal forms.

    Reply
  139. Avatar Sylvanus favour chinagorom says:
    4 years ago

    Name: Sylvanus favour chinagorom
    Matric no:2020/242141
    Email address :sylvanusfavourchi7@gmail.com
    METHODS OF ECONOMIC ANALYSIS
    Any economic analysis involves the formulation of laws and generalization.Economist use two methods in the analysis. The include:
    *INDUCTIVE
    *DEDUCTIVE METHODS.
    *Inductive method involves the use of reasoning from particular fact to general principle. The process for this method are,observation, formulation of hypothesis, general principle, verifying against actual facts.
    Deductive method of economic analysis ,we proceed from general to the particular or main facts.that is drawing conclusions for the observation made so far.

    Reply
  140. Avatar ANIH FORTUNE KENECHUKWU says:
    4 years ago

    Name: ANIH FORTUNE KENECHUKWU
    Reg no: 20631084EF
    Faculty: Vocational and Technical Education
    Department: Business Education
    Email: fortunekenny111@gmail.com

    METHODS OF ECONOMIC ANALYSIS
    1. Inductive Method
    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
    *Experimentations
    *Observations
    *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 nonentity 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 common sense.
    Steps of Inductive Method
    i. Observation
    ii. Formation of hypothesis
    iii. Generalization
    iv. Verification
    Merits of Inductive Method
    i. It is based on facts as such the method is realistic.
    ii. In order to test the economic principles, method makes statistical techniques.
    iii. Induction method also helps in future investigation.
    Demerits of Inductive Method
    i. If conclusions drawn from insufficient data, the generalizations obtained may be faulty.
    ii. The inductive method is time-consuming and expensive.

    2. Deductive Method
    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.
    Steps of Deductive Method
    *Perception of the problem to be inquired into
    *Defining of terms
    *Deducing hypothesis from the assumptions
    *Testing of hypothesis
    Merits of Deductive Method
    i. This method is near to reality. It is less time consuming and less expensive
    ii. The use of mathematical techniques in deducing theories of economics brings exactness and clarity in economic analysis
    iii. The method is simple because it is analytical

    Demerits of Deductive Method
    i. The deductive method is simple and precise only if the underlying assumptions are valid
    ii. The deductive method is highly abstract. It require; a great deal of care to avoid bad logic or faulty economic reasoning

    Reply
  141. Avatar Chukwu Augustina Chicheta says:
    4 years ago

    Name: Chukwu Augustina Chicheta
    Martic no: 2020/243289
    Department: Public Administration And Local Government
    Email: chukwuaugustinac98@gmail.com

    The basic method of analysis used by economist are; Deductive method and Inductive method.

    1.Deductive method is a process of reasoning from one or more statement to reach conclusions.
    In deductive method also known as abstract, analytical represent abstract approach to the derivation of economic generalization and theories.
    The steps in the process of deriving economic generalization through deductive method are:
    i. perception of the problem.
    ii. definition of technical terms and making if assumption.
    iii. deducing hypothesis through logical deduction.
    iv. verification of hypothesis.

    2. Inductive method of analysis is a method of reasoning in which statements are viewed as supplying some evidence, but not full assurance of the truth of the conclusion.
    In this method of reasoning, one’s experiences and observations, including what is learned from others, are synthesized to come up with a general truth.
    The followings are the steps in developing economic theories through inductive method:
    i. Identifying the problem.
    ii. defining technical terms and variables related to the problem.
    iii. Collection of data.
    iv. construction of economic theories.

    Reply
  142. Avatar Anozie mmesoma miracle says:
    4 years ago

    Method of economics analysis:
    An economic analysis involves the formulation of laws and generations through two method deductiveand inductive method
    1:Deductivemethod.: known as abstract or analytical method.the deductive method consist in deriving conclusion from general all truth only few principle applies them conclusion 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.step involves in deductive method (a). testing of hypothesis (b) defining of terms etc.
    2: inductive method: which is also called empirical method was adopted by the historical school of economist it involves the process of reasoning from particular facts to general principle .this method derives economics generalization on the basis. 1) experimentation 2) observation and statistical method in this method data is collected about a certain economic phenomenon these systematically arranged and the general conclusion are drawn from them step involved are observation:
    *Observation
    *Generaralization and formation of hypothesis
    *Generalizations

    Reply
  143. Avatar Adaeze Jennifer Onuigbo says:
    4 years ago

    NAME: ONUIGBO ADAEZE JENNIFER
    MATRIC NUMBER: 2020/242608
    METHODS OF ECONOMIC ANALYSIS
    Any economic analysis involves the formulation of laws and generalizations through two methods;
    1. Deductive Method
    2. Inducive Method

    1. DEDUCTIVE METHOD: Here, economist observea and form certain assumptions ( elementary) or facts and then arrive at buildings hypothesis or theory using logical analysis or our own analytical abilities. They go from general to specific reasoning. It is a simple method and doesn’t require complex software analysis etc. The stages in deductive reasoning are;
    1. Observation
    2. Hypothesis
    3. Testing hypothesis
    If the hypothesis gets verified it becomes economic principles/laws and if it fails, the economist returns and look for another or an alternate hypothesis for the observation.

    PATTERN FOR DEDUCTIVE METHOD;
    OBSERVATION ( INFORMATION AND PATTERN)
    ⬇️
    TENTATIVE HYPOTHESIS
    ⬇️
    THEORY

    2. INDUCIVE METHOD: This type of reasoning flows from facts to theory. First, we collect information and facts and then more towards providing evidence using economic theory and facts. This method formulates principle using sub-methods; observations, experimentations, statistical methods. Data is collected about a particular economic theory and then conclusions are drawn. The stages here include;
    1. Observation
    2. Formulation of hypothesis
    3. Generalization of principles
    4. Verifying against actual facts.

    PATTERN FOR INDUCIVE METHOD:
    THEORY
    ⬇️
    HYPOTHESIS
    ⬇️
    OBSERVATION
    ⬇️
    CONFIRMATION

    Reply
  144. Avatar Okelekwe Chiamaka Mediatrix says:
    4 years ago

    Okelekwe Chiamaka Mediatrix
    Department of Economics
    2020/242609
    Qs: Briefly discuss on the basic method of economic analysis
    Answer:
    There mainly two basic method of economic analysis
    1. Deductive analysis
    2. Inductive analysis

    1. Deductive analysis: also called prori reasoning. It starts from unchallenged elementary or rudimentary assumptions or facts and then arrive at conclusions using logical analysis. It usually goes from general to specific. The stages involved are:
    a. Observation of a task
    b. Making hypothesis
    c. Testing the hypothesis using more observations
    There are advantages and disadvantages using this method
    Advantages: it is a simple method that doesn’t involve the use of a complex software analysis. It is also good for economists as it only involves the use of economic reasoning.
    Disadvantages: This method of reasoning starts from mere assumptions which can be logically flawed which then makes it unreliable for use.

    2. Inductive method: this type of reasoning flows from facts to thoery. First of all, there is collection of information and facts and then moving towards providing evidence using economic theory and facts. The stages are:
    a. Observation
    b. Formulation
    c. Generalizing principle
    d. Verifying against actual fact.
    There are also advantages and disaOkelekwe Chiamaka Mediatrixdvantages of using this method
    Advantages: since it based in facts is more reliable and realistic. More so, seeing that it uses statistical method of experiment, the process is scientific.
    Disadvantages: if the data collected is insufficient and faulty then the conclusion cannot be trusted. It is also expensive and time consuming.

    Reply
  145. Avatar Chukwu Emmanuel Ugonna says:
    4 years ago

    Chukwu Emmanuel Ugonna
    22246088CF
    Chukwuemma2212@gmail.com
    PALG

    QUESTION
    What are the basic methods of analysis used by economists? Briefly and convincingly discuss each of them.

    ANSWER
    Deductive Method;
    This is also called “priori reasoning”. A deductive approach to research and observation is the one that people typically liaise with scientific investigation. The researcher studies and take note of what others have done, reads existing theories/archives of whatever phenomenon he or she is studying and then tests the hypothesis that come forth from those theories, in brief this method aims at testing existing theories.

    Inductive Method;
    This method objective or prime goal is to generate theories based on specific instances of experimental observations. It refers to approaches that primarily use detailed list of data to bring out concepts. In brief inductive method aims at developing a theory.

    Reply
  146. Avatar OKorafor Chinonyerem Mgbo says:
    4 years ago

    NAME: OKORAFOR CHINONYEREM MGBO
    MATRIC NUMBER:2020/242636
    DEPARTMENT: ECONOMICS
    COURSE CODE: ECO 101
    COURSE TITLE: PRINCIPLES OF ECONOMICS

    Deductive method a way of reasoning whereby a new true statement is formulated from several true statements (assumptions) following the rules of logic. Deductive reasoning has a status of proof. In the wide sense, deductive method is a cognitive operation in which new knowledge is logically obtained from a system of available certified knowledge. Deductive method is the main method of investigation in economics.

    Inductive method is method of reasoning based on empirical observations. It allows for conclusions about the whole to be drawn based on evidence to given by samples(certain economic phenomenon). Simply put, it allows one to reason from the parts to establish the whole.

    Reply
  147. Avatar Nwosu Uchenna E. says:
    4 years ago

    Name:Nwosu Uchenna E.
    Reg number:20011956BF
    Dept.Business Education
    Faculty:Vocational Technical education
    Email:uchennamnwosu203@gmail.com
    Methods of Economic Analysis
    Like any other science, Economics adopts two important methods in its investigations and formulation of laws and principles. The two methods are:
    Deductive Methods and
    Inductive Methods
    1.Deductive method:Here we start with certain formal data and assumptions. Then by logical reasoning we arrive at certain conclusions. We start with undisputed fundamental facts and after adding some assumptions we build up a theory. For instance, it is assumed that businessmen aim at maximum profit. It follows from this that businessmen buy the materials in the cheapest market and sell it in the dearest market.
    In Deductive method of Economic Analysis we proceed from the general to the particular. This is also known as an an hypothetical  for some of the assumptions may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions. In economics we start with very simple premises and work up gradually or more and more complex hypotheses.
    A complete form of deductive method consists of three stages and they are;
    observation,
    deductive reasoning and
    instance and testing by means of further observations.

    2.Inductive method:In this method, economists proceed from a practical angle to problems of science to reduce the gulf between theory and practice. Induction is done by two forms, viz. experimentation and statistical form. Facts are collected first, arranged and conclusions are drawn. Then these general conclusions are further verified with reference to actual facts.
    The inductive method is generally associated with the statistical form of inductions. The statistical approach has a larger field in economic investigations than the method of experimentation. Further, the method of statistical induction is indispensable for the formulation of economic policy. Malthus presented his famous theory of population only after studying the facts of population in various countries; He then used statistics to support his theory. Similarly Engel, the German statistician employed inductive method and used statistics to formulate his law of consumption.

    Reply
  148. Avatar Ugwuoke Maryrose nkechi 2019/248161 says:
    4 years ago

    THE BASIC METHOD OF ECONOMIC ANALYSIS

    The basic method of analysis used by economists are classified into the deductive reasoning and inductive reasoning.

    1.) The deductive reasoning: it is also called analytical, abstract or prior method. the deductive method consists in deriving conclusions from general truths, takes few general principles and applies them then draw conclusion.

    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.

    The merits are:
    (i) This method is near to reality. It is less time consuming and less expensive.
    (ii) The use of mathematical techniques in deducing theories of economics brings exactness and clarity in economic analysis.
    (iii) There being limited scope of experimentation, the method helps in deriving economic theories.
    (iv) The method is simple because it is analytical.
    (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).

    The demerits are:
    (i) The deductive method is highly abstract. It require; a great deal of care to avoid bad logic or faulty economic reasoning.
    (i) The deductive method is simple and precise only if underlying assumptions are valid.

    2.) The inductive reasoning: it is also called empirical method and was adopted by the historical school of economists. it involves the process of reasoning from particular facts to general principles.

    This method derives economic generalization on the basics of (i) Experiment (ii) Observation (iii)Statistical methods.

    Steps of Inductive Method: the main steps are
    (i) Observation.
    (ii) Formation of hypothesis.
    (iii) Generalization.
    (iv) Verification.

    Merits of Inductive Method:
    (i) It is based on facts as such the method is realistic.
    (ii) It is dynamic and also helps in future investigation

    Demerits of Inductive Method:
    The main weaknesses of this method are as under:
    (i) If conclusions drawn from insufficient data, the generalizations obtained may be faulty.
    (ii) The collection of data itself is not an easy task. The sources and methods employed in the collection of data differ from investigator to investigator. The results, therefore, may differ even with the same problem.
    (iii) The inductive method is time-consuming and expensive.

    Reply
    • Avatar Ugwuoke Maryrose nkechi 2019/248161 says:
      4 years ago

      THE BASIC METHOD OF ECONOMIC ANALYSIS

      The basic method of analysis used by economists are classified into the deductive reasoning and inductive reasoning.

      1.) The deductive reasoning: it is also called analytical, abstract or prior method. the deductive method consists in deriving conclusions from general truths, takes few general principles and applies them then draw conclusion.

      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.

      The merits are:
      (i) This method is near to reality. It is less time consuming and less expensive.
      (ii) The use of mathematical techniques in deducing theories of economics brings exactness and clarity in economic analysis.
      (iii) There being limited scope of experimentation, the method helps in deriving economic theories.
      (iv) The method is simple because it is analytical.
      (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).

      The demerits are:
      (i) The deductive method is highly abstract. It require; a great deal of care to avoid bad logic or faulty economic reasoning.
      (i) The deductive method is simple and precise only if underlying assumptions are valid.

      2.) The inductive reasoning: it is also called empirical method and was adopted by the historical school of economists. it involves the process of reasoning from particular facts to general principles.

      This method derives economic generalization on the basics of (i) Experiment (ii) Observation (iii)Statistical methods.

      Steps of Inductive Method: the main steps are
      (i) Observation.
      (ii) Formation of hypothesis.
      (iii) Generalization.
      (iv) Verification.

      Merits of Inductive Method:
      (i) It is based on facts as such the method is realistic.
      (ii) It is dynamic and also helps in future investigation

      Demerits of Inductive Method:
      The main weaknesses of this method are as under:
      (i) If conclusions drawn from insufficient data, the generalizations obtained may be faulty.
      (ii) The collection of data itself is not an easy task. The sources and methods employed in the collection of data differ from investigator to investigator. The results, therefore, may differ even with the same problem.
      (iii) The inductive method is time-consuming and expensive.

      Reply
  149. Avatar Nweze Kingsley Ifeanyi says:
    4 years ago

    Name: Nweze Kingsley Ifeanyi
    Jamb reg: 20679046BF
    Faculty: Vocational and Technical Education
    Department: Business Education
    Email: nwezeikechukwujohnmartin@gmail.com

    There are two types of Economist Analysis
    1. Deductive method
    2. Inductive method

    Deductive method is also known analytical abstract a priori method.Deductive method make use of a certain data and assumption and by logical reasoning it will arrive at certain conclusions.For instance,it is assumed that businessmen aim at maximum profit.it says that businessmen buy the materials in the cheapest market and sell it in the dearest market where they will make profit.In Deductive method of Economist Analysis we proceed from the general to the particular.This is also known as an hypothetical method for some of some of the assumptions may not correspond to actual facts,but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions.
    A complete form of deductive method consists of these stages;
    i.Observation
    ii.deductive reasoning
    iii.Instance and testing by means of further observation.

    Inductive method.
    In this method,economists proceed from a practical angle to problems of science to reduce the gulf between theory and practice. Inductive is done by two form; Experimentation and Statistical form.Here facts are collected first,arranged and conclusions are drawn.
    The Inductive method is generally associated with the statistical form of induction. The statistical approach has larger field in economic investigations than the experimentation method.

    In conclusion,the two methods, Inductive and Deductive are very important in economics analysis.Both of them are complementary to each other.

    Reply
  150. Avatar Ezeka ChiNaza Bella says:
    4 years ago

    Name: Ezeka ChiNaza Bella
    Department:Eco 101
    Reg. Number: 20167946BF
    Faculty: VTE
    1.Deductive method :in deductive method of economic analysis we proceed from the general to the particular. Tips is also known as an hypothetical method for some of the assumptions may not correspond to actual facts which may be used as premise for starting, reasoning and drawing conclusions.
    The methods are as follows:
    A.perception of the problem to inquire into.
    B.define precisely the technical term.
    C.assumptions
    D.hypothesis.

    2. Inductive Method:

    The inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.

    But, it is worth mentioning that the number of observations has to be large if it can yield a valid economic generalisation. One should not generalise on the basis of a very few observations. There are three ways which can be used for deriving economic prin­ciples and theories.

    They are:

    (a) Experimentation,

    (b) observations,

    (c) statistical or econometric method.

    As has been mentioned above, the experimentation, that is, the use of contrived experi­ments is of limited applicability in economics. First, unlike natural sciences which are concerned with analysing the behaviour of either inanimate objects or obedient animals such as rats and rabbits under the influence of chloroform, economics deals with the behaviour of man who is quite fickle, wayward and unmanageable.

    Besides, man cannot tolerate the idea of being experimented upon, either individually or collectively. Secondly, an economic phenomenon is the result of multiplicity of factors and causes acting and interacting upon each other.

    Therefore, economic phenomenon does not repeat itself in the same uniform pattern. Numerous factors acting on an economic phe­nomenon ‘disturb’ it and make its exact repetition unlikely. Thus, as compared with the natural phenomena, economic phenomena are of less uniform pattern, less repetitive and more variable.

    Thirdly, economists study the economic phenomena in which pressure groups such as employ­ers’ associations, trade unions, farming lobby, political parties with their different ideologies play a crucial part and their activities render it difficult to make controlled experiments in the economic world. However, in spite of these difficulties, experimental method can be used in some fields.

    For instance, experiments have been conducted to find out which law of production is valid, that is, whether law of diminishing returns, law of constant returns or law of increasing returns operates in the real world. Besides, public undertakings or big industrial firms often try to assess the effect of the changes in the prices of their products on the demand for it and thus find out the demand elastic­ity of their products.

    Reply
  151. Avatar Okechukwu prosper onyedikachukwu says:
    4 years ago

    Okechukwu prosper
    Matric no:2020/242139
    Basic methods of economics analysis are:
    1.Inductive method
    2.Deductive method
    1.Inductive method which is also known as empirical method.it involves logical thinking that combines observations with experiented information to reach a conclusion.It is aimed at developing a theory.
    2.Deductive method which is also called abstract, analytical,or priori method represent an abstract approach to the derivative of economic generalization and theories.It is aims at testing an existing theory.it can also be called hypothetical method for some of the actions may not correspond to actual fact, but very near actual facts which may be used as premises for starting, reasoning and drawing conclusions.

    Reply
  152. Avatar Attamah juliet chinaza .reg no 29758713ja says:
    4 years ago

    METHOD OF ECONOMICS ANALYSIS
    Economics analysis involves formulation of laws and generalizations
    (1)Deductive Method
    This is also called priori reasoning. It’s start from unchallenged elementary or rudimentary assumption /facts and when arrive at conclusions (build a hypothesis or theory) using logical analysis or own analytical abilities.in these kind of reasoning we go from general to specific.
    -observation of a task/issue
    -making the hypothesis
    -testing the hypothesis using more observation.
    Advantage of deductive method
    (1)It doesn’t involve the use of any complex software analysis.
    (2)This method is important for economists as it focuses upon economics reasoning which is of paramount importance.
    Disadvantages of deductive method
    (1) it starts from assumptions,thus if the assumption happen to be logically flawed the whole process become faulty and would give wrong conclusions.
    INDUCTIVE METHOD
    This type of reasoning flows from facts of theory. First we collect information and facts then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-method -observation, Experimentation, Statistical method
    Stages in Inductive method
    (1)Observation
    (2)Formulation of hypothesis
    (3)Generalizing principles
    (4)Verifying against actual facts
    Advantages of Inductive method
    -since it is based on facts it is more realistic and reliable.
    -Using statistical method and experimentations makes the process more scientific thus, more acceptable universally rather than just depending on your own reasoning and logic.
    -Since the economic environment is dynamic and always changing, relying upon a more scientific method always help reach logical conclusion.
    Disadvantages of inductive method
    (1)if data used is insufficient and faulty, it will lead to faulty conclusions, making the hypothesis less reliable.
    (2) it is a time -consuming process and thus expensive as well.
    (3) the collection of the data is not an easy job and varies from person to person, as how they collect data.

    Reply
  153. Avatar Obianozie maryjane chidimma(2019/241487) says:
    4 years ago

    Two types of economic analysis
    Deductive
    Inductive
    Deduction Means reasoning or inference from the general to the particular or from the universal to the individual. The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of facts.

    Then inferences are drawn which are verified against observed facts. Bacon described deduction as a “descending process” in which we proceed from a general principle to its consequences. Mill characterised it as a priori method, while others called it abstract and analytical.

    Deduction involves four steps: (1) Selecting the problem. (2) The formulation of assumptions on the basis of which the problem is to be explored. (3) The formulation of hypothesis through the process of logical reasoning whereby inferences are drawn. (4) Verifying the hypothesis. These steps are discussed as under.

    ADVERTISEMENTS:

    (1) Selecting the problem:

    The problem which an investigator selects for enquiry must be stated clearly. It may be very wide like poverty, unemployment, inflation, etc. or narrow relating to an industry. The narrower the problem the better it would be to conduct the enquiry.

    (2) Formulating Assumptions:

    The next step in deduction is the framing of assumptions which are the basis of hypothesis. To be fruitful for enquiry, the assumption must be general. In any economic enquiry, more than one set of assumptions should be made in terms of which a hypothesis may be formulated.

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    (3) Formulating Hypothesis:

    The next step is to formulate a hypothesis on the basis of logical reasoning whereby conclusions are drawn from the propositions. This is done in two ways: First, through logical deduction. If and because relationships (p) and (q) all exist, then this necessarily implies that relationship (r) exists as well. Mathematics is mostly used in these methods of logical deduction.

    (4) Testing and Verifying the Hypothesis:

    The final step in the deductive method is to test and verify the hypothesis. For this purpose, economists now use statistical and econometric methods. Verification consists in confirming whether the hypothesis is in agreement with facts. A hypothesis is true or not can be verified by observation and experiment. Since economics is concerned with human behaviour, there are problems in making observation and testing a hypothesis.

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    For example, the hypothesis that firms always attempt to maximise profits, rests upon the observation that some firms do behave in this way. This premise is based on a priori knowledge which will continue to be accepted so long as conclusions deduced from it are consistent with the facts. So the hypothesis stands verified. If the hypothesis is not confirmed, it can be argued that the hypothesis was correct but the results are contradictory due to special circumstances.

    Under these conditions, the hypothesis may turn out to the wrong. In economics, most hypotheses remain unverified because of the complexity of factors involved in human behaviour which, in turn, depend upon social, political and economic factors. Moreover, controlled experiments in a laboratory are not possible in economics. So the majority of hypotheses remain untested and unverified in economics.

    Merits of Deductive Method:
    The deductive method has many advantages.

    (1) Real:

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    It is the method of “intellectual experiment,” according to Boulding. Since the actual world is very complicated, “what we do is to postulate in our own minds economic systems which are simpler than reality but more easy to grasp. We then work out the relationship in these simplified systems and by introducing more and more complete assumptions, finally work up to the consideration of reality itself.” Thus, this method is nearer to reality.

    (2) Simple:

    The deductive method is simple because it is analytical. It involves abstraction and simplifies a complex problem by dividing it into component parts. Further, the hypothetical conditions are so chosen as to make the problem very simple, and then inferences are deduced from them.

    (3) Powerful:

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    It is a powerful method of analysis for deducing conclusions from certain facts. As pointed out by Cairnes, The method of deduction is incomparably, when conducted under proper checks, the most powerful instrument of discovery ever wielded by human intelligence.

    (4) Exact:

    The use of statistics, mathematics and econometrics in deduction brings exactness and clarity in economic analysis. The mathematically trained economist is able to deduce inferences in a short time and make analogies with other generalisations and theories. Further, the use of the mathematical-deductive method helps in revealing inconsistencies in economic analysis.

    (5) Indispensable:

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    The use of deductive method is indispensable in sciences like economics where experimentation is not possible. As pointed out by Gide and Rist, “In a science like political economy, where experiment is practically impossible, abstraction and analysis afford the only means of escape from those other influences which complicate the problem so much.”

    (6) Universal:

    The deductive method helps in drawing inferences which are of universal validity because they are based on general principles, such as the law of diminishing returns.

    Demerits of Deductive Method:
    Despite these merits, much criticism has been levelled against this method by the Historical School which flourished in Germany.

    1 .Unrealistic Assumption:

    Every hypothesis is based on a set of assumptions. When a hypothesis is tested, assumptions are indirectly tested by comparing their implications with facts. But when facts refute the theory based on the tested hypothesis, the assumptions are also indirectly refuted. So deduction depends upon the nature of assumptions. If they are unrealistic, in this method, economists use the ceteris paribus assumption. But other things seldom remain the same which tend to refute theories.

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    2. Not Universally Applicable:

    Often the conclusions derived from deductive reasoning are not applicable universally because the premises from which they are deduced may not hold good at all time and places. For instance, the classicists assumed in their reasoning that particular conditions prevailing in England of their times were valid universally. This supposition was wrong. Prof. Lerner, therefore, points out that the deductive method is simply “armchair analysis” which cannot be regarded as universal.

    3. Incorrect Verification:

    The verification of theories, generalisations or laws in economics is based on observation. And right observation depends upon data which must be correct and adequate. If a hypothesis is deduced from wrong or inadequate data, the theory will not correspond with facts and will be refuted. For instance, the generalisations of the classicists were based on inadequate data and their theories were refuted. As pointed out by ircholson, “the great danger of the deductive method lies in the natural aversion to the labour of verification.”

    4. Abstract Method:

    The deductive method is highly abstract and requires great skill in drawing inferences for various premises. Due to the complexity of certain economic problems, it becomes difficult to apply this method even at the hands of an expert researcher. More so, when he uses mathematics or econometrics.

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    5. Static Method:

    This method of analysis is based on the assumption that economic conditions remain constant. But economic conditions are continuously changing. Thus this is a static method which fails to make correct analysis.

    6. Intellectually:

    The chief defect of the deductive method “lies in the fact that those who follow this method may be absorbed in the framing of intellectual toys and the real world may be forgotten in the intellectual gymnastics and mathematical treatment.”

    The Inductive Method:
    Induction “is the process of reasoning from a part to the whole, from particulars to generals or from the individual to the universal.” Bacon described it as “an ascending process” in which facts are collected, arranged and then general conclusions are drawn.

    The inductive method was employed in economics by the German Historical School which sought to develop economics wholly from historical research. The historical or inductive method expects the economist to be primarily an economic historian who should first collect material, draw gereralisations, and verify the conclusions by applying them to subsequent events. For this, it uses statistical methods. The Engel’s Law of Family Expenditure and the Malthusian Theory of Population have been derived from inductive reasoning.

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    The inductive method involves the following steps:

    1. The Problem:

    In order to arrive at a generalisation concerning an economic phenomenon, the problem should be properly selected and clearly stated.

    2. Data:

    The second step is the collection, enumeration, classification and analysis of data by using appropriate statistical techniques.

    3. Observation:

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    Data are used to make observation about particular facts concerning the problem.

    4. Generalisation:

    On the basis of observation, generalisation is logically derived which establishes a general truth from particular facts.

    Thus induction is the process in which we arrive at a generalisation on the basis of particular observed facts.

    The best example of inductive reasoning in economics is the formulation of the generalisation of diminishing returns. When a Scottish farmer found that in the cultivation of his field an increase in the amount of labour and capital spent on it was bringing in less than proportionate returns year after year, an economist observed such instances in the case of a number of other farms, and then he arrived at the generalisation that is known as the Law of Diminishing Returns.

    Merits of Inductive Method:
    The chief merits of this method are as follows:

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    (1) Realistic:

    The inductive method is realistic because it is based on facts and explains them as they actually are. It is concrete and synthetic because it deals with the subject as a whole and does not divide it into component parts artificially

    (2) Future Enquiries:

    Induction helps in future enquiries. By discovering and providing general principles, induction helps future investigations. Once a generalisation is established, it becomes the starting point of future enquiries.

    (3) Statistical Method:

    The inductive method makes use of the statistical method. This has made significant improvements in the application of induction for analysing economic problems of wide range. In particular, the collection of data by governmental and private agencies or macro variables, like national income, general prices, consumption, saving, total employment, etc., has increased the value of this method and helped governments to formulate economic policies pertaining to the removal of poverty, inequalities, underdevelopment, etc.

    (4) Dynamic:

    The inductive method is dynamic. In this, changing economic phenomena can be analysed on the basis of experiences, conclusions can be drawn, and appropriate remedial measures can be taken. Thus, induction suggests new problems to pure theory for their solution from time to time.

    (5) Histrico-Relative:

    A generalisation drawn under the inductive method is often histrico-relative in economics. Since it is drawn from a particular historical situation, it cannot be applied to all situations unless they are exactly similar. For instance, India and America differ in their factor endowments. Therefore, it would be wrong to apply the industrial policy which was followed in America in the late nineteenth century to present day India. Thus, the inductive method has the merit of applying generalisations only to related situations or phenomena.

    Demerits of Inductive Method:
    However, the inductive method is not without its weaknesses which are discussed below.

    (1) Misenterpretation of Data:

    Induction relies on statistical numbers for analysis that “can be misused and misinterpreted when the assumptions which are required for their use are forgotten.”

    (2) Uncertain Conclusions:

    Boulding points out that “statistical information can only give us propositions whose truth is more or less probable it can never give us certainty.”

    (3) Lacks Concreteness:

    Definitions, sources and methods used in statistical analysis differ from investigator to investigator even for the same problem, as for instance in the case of national income accounts. Thus, statistical techniques lack concreteness.

    (4) Costly Method:

    The inductive method is not only time-consuming but also costly. It involves detailed and painstaking processes of collection, classification, analyses and interpretation of data on the part of trained and expert investigators and analysts

    (5) Difficult to Prove Hypothesis:

    Again the use of statistics in induction cannot prove a hypothesis. It can only show that the hypothesis is not inconsistent with the known facts. In reality, collection of data is not illuminating unless it is related to a hypothesis.

    (6) Controlled Experimentation not Possible in Economics:

    Besides the statistical method, the other method used in induction is of controlled experimentation. This method is extremely useful in natural and physical sciences which deal with matter. But unlike the natural sciences, there is little scope for experimentation in economics because economics deals with human behaviour which differs from person to person and from place to place.

    Further, economic phenomena are very complex as they relate to man who does not act rationally. Some of his actions are also bound by the legal and social institutions of the society in which he lives. Thus, the scope for controlled experiments in inductive economics is very little. As pointed Out by Friendman, “The absence of controlled experiments in economics renders the weeding out of unsuccessful hypo-these slow and difficult.”

    Conclusion:
    The above analysis reveals that independently neither deduction nor induction is helpful in scientific enquiry. In reality, both deduction and induction are related to each other because of some facts. They are the two forms of logic that are complementary and co-relative and help establish the truth.

    Marshall also supported the complementary nature of the two methods when he quoted Schmoller: “Induction and deduction are both needed for scientific thought as the right and left foot are needed for walking.” And then Marshall stressed the need and use of integrating these methods.

    Reply
  154. Avatar Ani Emmanuella Ngozi says:
    4 years ago

    Name:Ani Emmanuella Ngozi
    Reg no : 20633789BA
    Dep: Business Education
    The methods use in economics analysis are
    Deductive and Inductive method
    1)Deductive /abstract method : we start with certain formal data and assumption , but by logical reason we arrive at certain conclusion,we start with undisputed fundermental fact and after adding some assumption,we build up a theory and in this method assumptions may not correspond to actual fact, when this happens it is HYPOTHETICAL method .
    2)Inductive /empirical method :in this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalization which follow from the observation collected ,one should not generalize on the basis of a very few but in large way .
    In this method we make use of econometric package to run the experiment

    Reply
  155. Avatar Benjamin Revelation Chiemerie says:
    4 years ago

    Name: Benjamin Revelation Chiemerie.
    Reg number:20690724FA
    Department: Nursing Sciences
    Email: revelationchiemerie0@mail.com.

    METTODS OF ECONOMICS ANALYSIS
    Generalisation in economic analysis have been derived in two ways.
    1. Deductive Mettod: The deductive Mettod of generalisation is also called the abstract, analytical and a priori Mettod and represent an abstract approach to the derivation of economic generalisation and theories, this is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions facts and then arrive at conclusion building a hypothesis and theory using our logical analysis or our own analytical abilities.there are stages in deductive reasoning which are;
    1. Observation of a task issue
    2. Making the hypothesis
    3. Testing the hypothesis using more observation.
    ADVANTAGES OF DEDUCTIVE METTOD
    1. It doesn’t involve the use of any complex software analysis
    2. This Mettod is important for economist as it focuses upon economic reasoning which is Paramount importance.
    DISADVANTAGE
    1. Logical Fallacy.

    INDUCTIVE METTOD: This is also called Emperical Mettod derives economic generalisation on the basis of experience and observation in this Mettod detailed data are called with regard to a certain economic phenomenon and effort is then made arrive at certain fact. this type of reasoning flows from facts to theory,we collect information and facts and then move towards providing evidence using economic theory and facts. This Mettod fumulate principles using the sub-mettods which are:
    1. Observation
    2.Experimentation
    3. Statistical Mettod.
    ADVANTAGES
    1. It is based on facts
    2. It is dynamic and always change.
    DISADVANTAGES
    1. It makes data insufficient.
    2. It has faulty conclusion

    Reply
  156. Avatar Ndufuechi Oluchukwu Jessica says:
    4 years ago

    NAME: Ndufuechi Oluchukwu .J.
    FACULTY: Health Science and Technology
    DEPARTMENT: Nursing Sciences
    REG.NO: 20122383CA

    Economic Analysis involves the formulation of law and its generalization through two major methods, DEDUCTIVE and INDUCTIVE method.

    1.DEDUCTIVE METHOD: In this method, hypothesis or theory is built using logical abilities or analytical abilities and when verified we get general economic reasoning or law. In this reasoning, we go from general to specific. This is also called ‘A Priori Reasoning’
    The stages in this method involve;
    a) Information/assumption/perception.
    b) Observation of a task or issue/Perception
    c) Making the hypothesis
    d) Testing the hypothesis using more observation
    Advantages of Deductive method;
    1)The deductive method only requires simple deductive logic, doesn’t involve the use of any complex software analysis and so on. The reasoning starts from assumptions, therefore if the assumptions are logically flawed/wrong the whole process becomes faulty.
    2)This method is also important for economists as it focuses upon economical reading which is of great importance.

    2.INDUCTIVE METHOD: In this method, information and facts are collected then move towards providing evidence using economic theory and facts.
    The stages in this method involve;
    a) Observation
    b) Formulation of hypothesis
    c) Generalizing principles
    d) Verifying against actual facts.
    This method formulates principles using; Observation, Experimentation and statistical methods.
    Advantages of Inductive Method;
    1)This method is more realistic and reliable because it is based on facts.
    2)This method is more acceptable universally because it uses statistical methods and experimentations rather than depending on mere reasoning and logic, which makes it more scientific.
    3)It is easier to rely on its scientific method because of the dynamic nature of the economical environment.

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  157. Avatar Agu Divine favour (2019/246133) says:
    4 years ago

    There are two economic analysis
    1.Deductive analysis
    2. Inductive analysis

    Deductive Method of Economic Analysis
    Deductive method is known as the analytical abstract a priori method. Here we start with certain formal data and assumptions. Then by logical reasoning we arrive at certain conclusions. We start with undisputed fundamental facts and after adding some assumptions we build up a theory. For instance, it is assumed that businessmen aim at maximum profit. It follows from this that businessmen buy the materials in the cheapest market and sell it in the dearest market.

    In Deductive method of Economic Analysis we proceed from the general to the particular. This is also known as an hypothetical method for some of the assumptions may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions. In economics we start with very simple premises and work up gradually or more and more complex hypotheses.

    A complete form of deductive method consists of three stages, viz.,

    observation;
    deductive reasoning and
    instance and testing by means of further observations.
    Deductive reasoning provides us with hypotheses or generalizations. If the hypotheses are tested and verified with relevance to facts, we have valid economic laws.

    Advantages of Deductive Method of Economic Analysis
    Deductive method has the following ‘merits’

    1. Deductive method is exceedingly simple. For example, the law that the utility derived by an individual from a commodity goes on diminishing with every successive addition is a self-evident truth from which we may draw many logical conclusions, viz., larger the stock of money, the lower shall be the utility of money; rich persons have lesser marginal utility of money than the poor people; so taxes should not be levied on proportional basis. If taxes are levied proportionately, the sacrifice of the poor will be larger than the rich. This is against the Canon of equity, etc. Thus the principle of progressive taxation is derived from the law of diminishing utility through deductive reasoning.

    2. Deductive method obviates the necessity of experimentation. Economics being a social science, experimentation may not be available as in the case of physics or chemistry. So, the next best alternative to experiment is deductive reasoning. According to Boulding this method of deductive reasoning is the method of intellectual experiment.

    3. The deductive method results in accuracy and exactness in generalization, because of logical reasoning. The method gives a very high standard of precision in abstract economic reasoning.

    Disadvantages of Deductive Method of Economic Analysis
    Deductive method has its drawbacks also:

    1. Deduction is based mainly on assumptions which are perfectly valid. If assumptions are wrong, generalizations made on the basis of wrong assumptions will be imperfect and invalid. All economic laws are based on too many assumptions where there are more scope for committing errors through wrong hypotheses.

    2. In deduction there is too much of abstraction and economists by means of their intellectual exercises produce only “intellectual toys” having little connection with reality.

    3. Deductive generalizations started on wrong premises will be dangerous when such generalization claim universal validity. Then such faulty generalizations are made use of in framing government policies, the results would be nothing but disastrous. For example, J.B.Say, claimed universal validity for his ‘Law of Markets’ in which he maintained that supply creates its own demand and there will not be over-production in the market. But this celebrated ‘Law of Market’ was torn to pieces when critics proved that Say’s Law was wrong and overproduction would be possible.

    Inductive Method of Economic Analysis
    In this method, economists proceed from a practical angle to problems of science to reduce the gulf between theory and practice. Induction is done by two forms, viz. experimentation and statistical form. Facts are collected first, arranged and conclusions are drawn. Then these general conclusions are further verified with reference to actual facts.

    The inductive method is generally associated with the statistical form of inductions. The statistical approach has a larger field in economic investigations than the method of experimentation. Further, the method of statistical induction is indispensable for the formulation of economic policy. Malthus presented his famous theory of population only after studying the facts of population in various countries; He then used statistics to support his theory. Similarly Engel, the German statistician employed inductive method and used statistics to formulate his law of consumption.

    Advantages of Inductive Method of Economic Analysis
    Inductive method has the following merits:

    1. It is highly practical add realistic as it describes things as they are.

    2. It is helpful in verifying the conclusions of the deductive method.

    3. Economic laws under this method are not universal but valid only under certain conditions.

    Disadvantages of Inductive Method of Economic Analysis
    Inductive method has the following limitations:

    1. When the investigators lack a balanced judgement there is the risk of drawing hurried conclusions based on inadequate and irrelevant facts and data.

    2. Collection of facts in the inductive process is a highly complex and complicated job warranting extraordinary understanding to alienate economic from non-economic factors.

    3. Mere induction alone will not deliver goods unless it is supplemented by means of deductive reasoning. Without deduction, the inductive method would result in producing only a mass of unrelated and unconnected facts.

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  158. Avatar Ume Ozioma Victory says:
    4 years ago

    Name: Ume Ozioma Victory
    Email: oziomavictory24@gmail.com
    Matric number: 20679167HF
    Department: Nursing Sciences
    Course code: Eco101
    Course title: Principles of Economics

    ECONOMIC ANALYSIS
    Some of the important methods of Economic Analysis include
    1) DEDUCTIVE METHOD
    This is also called ABSTRACT, ANALYTICAL and PRIORI method and represents an abstract approach to derivation of economic generalizations and theories. Steps in the process of deriving economic generalizations through deductive logic are
    A) PERCEPTION OF THE PROBLEM REQUIRED TO BE ENQUIRED INTO
    In a scientific enquiry,the theorist or analyst must have a clear idea of the problem to be enquired into. He or she must know the significant variables regarding whose behaviour and interrelationship he or she wants to derive generalizations. This is by no means an easy task.
    B) DEFINITION OF TECHNICAL TERMS AND MAKING OF ASSUMPTIONS.
    This means to define precisely and unambiguously the various technical terms to be used in the analysis as well as to state clearly the assumptions he makes to derive generalizations. Assumptions as mentioned above, may be behavioral pertaining to the behaviour of the economic variables or they may be technological relating to the state of technology and factor endowments. The crucial assumptions are made on the basis of observations. Each and every assumption made by a theory may not be realistic. A correct scientific theory or generalization must be expressed in the form of a hypothesis that is conceivably refutable.
    C) DEDUCING HYPOTHESIS THROUGH LOGICAL DEDUCTION.
    A hypothesis describes relationship between factors affecting a phenomenon; it establishes the cause and effect relationship between the variables having a bearing on the phenomenon. Then through logical process, hypothesis is deduced from the assumptions made. This logical reasoning may be carried out verbally or it may be conducted in symbolic terms using the language of what is known as SYMBOLIC LOGIC. The GEOMETRIC or GRAPHIC TECHNIQUE is also usually employed to deduce the hypothesis about the relationship between factors. Besides, the process of logical deduction may be done with the help of more formal mathematics.
    D) TESTING OR VERIFICATION OF HYPOTHESIS
    For the verification of hypothesis, economists cannot make controlled experiments, because they have to discover uniformities in behaviour patterns of man. We cannot make experiments with man under controlled conditions, such as in laboratories as physical scientists make experiments with inanimate objects of mature and biologists make there with animals and plants. So they have to rely on uncontrolled experience and observations. In the absence of controlled experiments, for the verification of their theories,economists have to rely on the direct observations of events in the real world. By direct observations, we mean “gathering of information personally or reliance on comparatively unprocessed materials such as files of business firms; to mention but a few.
    MERITS OF DEDUCTIVE METHOD
    1) Compared to the inductive method, deductive method is less time consuming and less expensive
    2) Useful economic theories can be derived logic without the teinuous and detailed collection and analysis of data which are required under the inductive method
    DEMERITS OF DEDUCTIVE METHOD
    1) The use of deductive method in deriving economic generalizations require the use of high-level competence in logic and theoritical abstractions.

    INDUCTIVE METHOD

    This is also called EMPIRICAL METHOD. It derives economic generalizations on the basis of experience and observations. Detailed data are collected. There are 3 ways which can be used for deriving economic principles and theories. They are;
    A) Experimentations
    B) Observations
    C) Statistical or economic method
    STEPS IN INDUCTIVE METHOD
    1) Identify the problem
    2) Determining technical terms and variables related to the problem
    3) Collection of data about the variables related to the problem and during some preliminary thinking about the possible functional relationships between the relevant variables
    4) Processing of data collected and finding out what relationship between the variables actually hold goods.
    The use of inductive method is not of much value if it is not supported by the economic hypothesis or theory developed by deductivw logic. It can at best be used to empirically test the theory or hypothesis as to whether it is consistent with or refuted by factor. But there is a general risk of conclusions being drawn from insufficient data.

    Reply
  159. Avatar OZOR PAMELLA CHISOM says:
    4 years ago

    NAME:OZOR PAMELLA CHISOM
    REG NO :21465238GA
    FACULTY: SOCIAL SCIENCE
    DEPARTMENT: EDUCATION ECONOMICS
    EMAIL: ozorpamella05@agmail.com
    METHOD OF ANNALYSIS
    1. DEDUCTIVE METHOD:The deductive method is also called abstract analytical and and a prior method and represent an abstract approach. Precisely the technical terms and making of assumptions, deducing hypothesis and testing the hypothesis, is aslo a process followed in deductive process.Then by logical reason they arrive at a certain conclusions.

    2. INDUCTIVE METHOD :It involves observation and measures of deriving economic generalization. In inductive methods facts are collected, arranged and conclusions drawn

    Reply
  160. Avatar NNAMANI RONALD CHINEDU says:
    4 years ago

    NAME: NNAMANI RONALD CHINEDU.
    JAMB REG NUMBER:20643783BA.
    DEPARTMENT: PHILOSOPHY.
    FACULTY: SOCIAL SCIENCE.
    EMAIL: nnamanironaldchinedu@gmail.com
    Method of economic analysis.
    1. Deductive method: This method of deriving economic analysis and generalization can also be called abstract, analytical and priori method. This method involves the use of reasoning,logic and hypothesis. Some of its procedures are:
    a. Perception of the problem: This means the economist must have an idea on the problem.
    b. Defining precisely the technical term.
    c. The use of assumption and derivation of hypothesis.
    d. Testing of hypothesis.
    Advantage of deductive method: It is easy,cheap and simple.
    Disadvantage of deductive method: It can be inaccurate because sometimes the assumptions being made can be wrong.

    2. Inductive method: This method of deriving economic analysis is also called Empirical method. In this method the economist observes, gathers and uses data inorder to get it’s economic analysis. Also the use of econometric packages are used for experimentation. Some of the procedures of this method are:
    a. Observation and experimentation.
    b. Formulation of hypothesis.
    c. Generalizing principles.
    d. Verifying against actual fact and statistical method.
    Advantage of inductive method: It is highly reliable and accurate because data is being gathered and used.
    Disadvantage of inductive method: It waste and consumes time. It is also stressful and difficult.

    Reply
  161. Avatar Odu Gideon Odu says:
    4 years ago

    Department: Economics
    Reg: 2020/242639
    The methods of Economic Analysis
    1. Inductive method
    This method details the collection of data with regards to a certain economic phenomenon and effort is then made to arrive at certain generalizations which follow the observation collected. It is neccessary to note that one should not generalize only on a very few observations but large number of observations which can yield a valid generalization.
    2. Deductive method
    This method consist of deriving conclusion from general truth, takes few general principle and applies them, draw conclusion. 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.

    Reply
  162. Avatar Odu Gideon Odu says:
    4 years ago

    Department: Economics
    Reg: 2020/242639
    The methods of Economic Analysis
    1. Inductive method
    This method details the collection of data with regards to a certain economic phenomenon and effort is then made to arrive at certain generalizations which follow the observation collected. It is neccessary to note that one should not generalize only on a very few observations but large number of observations which can yield a valid generalization.
    2. Deductive method
    This method consist of deriving conclusion from general truth, takes few general principle and applies them, draw conclusion. 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.

    Reply
  163. Avatar Agbo Ugochukwu Lilian says:
    4 years ago

    Name: Agbo Ugochukwu Lilian
    Reg number: 20643457CF
    E mail:lilianagbo31@gmail.com
    Basic Methods of Analysis Used by Economists

    Economics analysis is defined as the various methodes that Economists use in experiments of models (data)
    These are the process and procedures that helps economist during experiment of analysis, observation, construction and investigation of problems to derive an answer.
    ___ Inductive method
    ___Deductive method

    INDUCTIVE METHOD
    In Inductive method of analysis, an economist makes use of econometric packages to analyze his data.The econometric packages are
    __E – View and
    __Stata
    These are the packages used for analysis by using data to test the economy and goes ahead to produce solution (Advice).
    In these procedures data are generated through the people’s
    Interest
    Taste
    Preference
    Opinions
    Ideas
    An economist takes observation through them to analyze and balance his results which he goes ahead to generate economic advice

    DEDUCTIVE METHOD
    In deductive method of analysis, generalization and theory are used in economics based of experiment.
    These includes

    __perception : this is to perceive the problem and identify the issue to turn generalization to theory.we do this by technical terms of explanation of observation and assumptions of problems for prove .

    __Postulate: this is to assume a result which falls on analysis.

    __Hypothesis: this is when an economist goes ahead to compare his analysis with his observation and people’s individual preferences. This actualizes
    Alternative hypothesis__this is the end of resul
    Null hypothesis __this is the assuming part.

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  164. Avatar EZE JUDITH CHINONSO says:
    4 years ago

    me: Eze Judith chinonso
    Reg no: 2020/242913
    Email: ezejudith863@gmail.com
    Department: Combined social sciences (Economics/political science)
    Faculty: social sciences
    Methods of Economic Analysis:

    Some of the most important methods of economic analysis are as follows:
    1. Deductive Method
    2. Inductive Method.

    Economic generalisations describe the laws or statements of tendencies in various branches of economics such as production, consumption, exchange and distribution of in -come. In the view of Robbins, economic generalisations or laws are statements of uniformities which describe human behaviour in the allocation of scarce resources between alternative ends.

    The generalisations of economics like the laws of other sciences, state cause and effect relation ships between variables and describe those economic hypotheses which have been found consistent with facts or, in other words, have been found to be true by empirical evidence. But a distinction may be drawn between a generalisation (law) and a theory.

    A law or generalisation just describes the relationship between variables; it does not provide any explanation of the described relation. On the other hand, a theory provides an explanation of the stated relation between the variables, that is, it brings out the logical basis of the generalisation. An economic theory or a model derives a generalisation through process of logical reasoning and explains the conditions under which the stated generalisation will hold true.

    Reply
  165. Avatar Uzoetoh Chinaecherem Clara says:
    4 years ago

    Reg number:20022678IA Department:Economics Blog address:Uzoetohclara.blogspot.com

    The basic methods of economic analysis are:
    a) Inductive method
    b) Deductive method

    a) Inductive method:It derives economic generalizations on the basis of experience and observations. In this method, detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalizations which follow from the observations collected. It is also known as Empirical method.

    Stages of deriving economic generalizations through inductive method are:
    1) Experimentation
    2) Observation
    3) Statistical or econometric method

    Advantages of inductive method
    a) Since it is based on facts, it is more realistic and reliable.

    b) Using statistical methods and experimentations make the process more scientific, thus more acceptable universally rather than just depending on your own reasoning and logic.

    c) Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of inductive method
    a) If the data used is insufficient and faulty, it would lead to faulty conclusions making the results less reliable.

    b) It is time-consuming and expensive.

    c) Collection of all the data is quite stressful and varies from person to person.

    d) Deductive method:In this method we go from general reasoning to specific analysis. It is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalizations and theories.

    Stages of deriving economic generalizations through deductive method
    1) Perception of the problem to be inquired about;He must know the significant variable regarding whose behavior and inter-relationship he wants to derive generalizations.

    2) Definition of technical terms and making of assumptions;Simplifying assumptions is quite necessary in order to bring out the importance of really significant factors having a bearing on the problem under investigation. It enables us predict things accurately.

    3) Deducing hypotheses through logical deduction;The hypotheses describes the relationship between factors affecting a phenomenon,it establishes the cause and effect relationship between the variables. Through logical process, hypothesis is deduced from the assumptions made.

    4) Testing or verification of hypotheses;Two related distinctions must be borne in mind;first, functional relationship between economic variables and a historically sequence of events must be distinguished. Second, the actual course of events is governed by several other factors assumed by a generalization which remains constant under the qualification“other things remaining the same”.

    Advantages of deductive method
    a) It doesn’t involve the use of any complex software analysis, only simple deductive logic is required.

    b)It focuses upon economic reasoning which is of paramount importance.

    Disadvantage of deductive method
    a) Logical fallacy; if the assumptions happen to be logically flawed, the whole process becomes faulty and would give wrong conclusions.

    Conclusion:Both methods of economic analysis are complimentary rather than competitive.

    Reply
  166. Avatar Omeje Deborah Mmesoma says:
    4 years ago

    Omeje Deborah Mmesoma
    2020/242625
    omejedeborahmmesoma@gmail.com
    Deductive Method derives new conclusion from fundamental assumptions or from truth established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of facts. In economics, Deductive method is simple to use because it is analytical, it involves abstraction and simplifies complex problems by deviding it into different parts. It is also a powerful method for deducing conclusions from facts.

    Inductive Method derives economic generalization on the basis of experience and observations. In economics, Inductive method helps in the observation of facts through collection of detailed data and use of statistical methods to arrive at economic development. Some of the recent researches in the field of macro-economics such as the principle of acceleration describing the factors which determine investment in the economics have been obtained through the use of Inductive method.
    I

    Reply
  167. Avatar ACHICHI JOSEPH OFIONYE says:
    4 years ago

    NAME: ACHICHI JOSEPH OFIONYE
    REG NO: 2019/241290
    FACULTY: PHYSICAL SCIENCES
    DEPARTMENT: PURE AND INDUSTRIAL CHEMISTRY

    Economics like every other sciences, employs two essential methods in its investigations and formulation of law and principles. The two methods includes:
    1.Deductive method
    2. Inductive method
    DEDUCTIVE METHOD
    Deductive method is a method of economic analysis that involves the use of logical reasoning to arrive at a conclusion using formal data and assumptions. This method provides us with generalizations and hypotheses.We have valid economic laws if the hypotheses are tested and verified with relevance to facts.
    A complete form of deductive method consist of three stages, viz
    1. Observation
    2. Deductive reasoning
    3. Instance and testing by means of further observation.
    INDUCTIVE METHOD
    The inductive method is sometimes similar to the deductive method. The only thing that differentiates them is that induction uses econometric packages i.e E-views and STATA to run experiment. This method proceeds from a practical angle to problem of science to reduce the gulf between theory and practice. Induction is done by two form, viz, experimentation and statistical form. Here facts are first collected, arranged and conclusions are then drawn. Then these general conclusions are further verified with reference to actual facts.
    The inductive method is generally associated with the statistical form of induction because statistical approach has a higher field in economic investigations than the method of experiment. The statistical induction is indispensable for the formulation of economic policy. Malthus and Engel used the statistical induction to present the Theory of Population and Law of Consumption respectively.

    Reply
  168. Avatar Anusia goodness tochukwu says:
    4 years ago

    Name:Anusia goodness tochukwu
    Department: Vocational and technical education
    Course:Eco 101
    Gmail: goodnessanusia@gmail.com

    Deductive method: In deductive method of economics analysis we proceed from the general to the particular. This is also known as a hypothetical method for some of the assumption s may not correspond to actual facts, but very near actual facts which may be used as permise for starting, reasoning and drawing conclusions.
    Methods include:
    1.Perception of the problem to inquire into.
    2. Define precisely the technical terms.
    3.Assumptions.
    4.Hypothesis.

    Inductive method: which is also called empirical method was adopted by historical economists. It involves the process of reasoning from particular fact to general principal.
    Methods include:
    1. Experimentation.
    2. Observation.
    3. Statistical method.

    Reply
  169. Avatar Anusis Goodness tochukwu says:
    4 years ago

    Name:Anusia goodness tochukwu
    Department: Vocational and technical education
    Course:Eco 101
    Gmail: goodnessanusia@gmail.com

    Deductive method: In deductive method of economics analysis we proceed from the general to the particular. This is also known as a hypothetical method for some of the assumption s may not correspond to actual facts, but very near actual facts which may be used as permise for starting, reasoning and drawing conclusions.
    Methods include:
    1.Perception of the problem to inquire into.
    2. Define precisely the technical terms.
    3.Assumptions.
    4.Hypothesis.

    Inductive method: which is also called empirical method was adopted by historical economists. It involves the process of reasoning from particular fact to general principal.
    Methods include:
    1. Experimentation.
    2. Observation.
    3. Statistical method.

    Reply
  170. Avatar Kenechukwu Emmanuel Onyedika says:
    4 years ago

    NAME_ KENECHUKWU EMMANUEL ONYEDIKA
    FACULTY_ SOCIAL SCIENCE
    DEPARTMENT_ ECONOMICS
    REG NO_ 2020/242637

    _Methods of Economic Analysis_
    In economics, broadly we make use of two methods.

    (i) Deductive method

    (ii) Inductive method

    The deductive method is also known as abstract method or analytical method. This method is based on a priori reasoning and conclusions are drawn from certain fundamental assumptions. Deduction method was very popular among the Greeks. Here is an example :
    All men are mortal Socrates is a man Socrates is mortal The deductive method moves from the general assumption to the specific application.

    Ricardo, a classical economist, made use of the deductive method.

    The inductive method moves from specific observations to generalization. It was Francis Bacon who advocated inductive method in scientific enquiry.
    None of the above methods provides satisfactory system for solution of problems. So Darwin, who is famous for this theory of evolution, by introducing the concept of hypothesis, has combined deductive and inductive methods.

    The important elements of Darwin’s deductive-inductive method are:
    1 Identification of a problem
    2 formulation of hypothesis (a hypothesis is an assumption or an intelligent guess)
    3 collection, organization and analysis of data
    4 formulation of conclusions
    verification, rejection or modification of the hypothesis after testing it.

    Reply
  171. Avatar Nwokolo Chinedu Emmanuel says:
    4 years ago

    Name: Nwokolo Chinedu Emmanuel
    Reg no: 2020/242604
    Email: emmychi16@gmail.com

    There are mainly two basic methods of analysis used by economists :

    Deductive method >=> The deductive method is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalisations and theories. The principal steps in deriving economic generalizations through deductive logic are: (I) perception of the problem to be enquired into (II) defining the principal terms and making appropriate assumptions (III) deducing the hypothesis, and then (IV) testing the hypothesis deduced

    Inductive method >=> The inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.
    But, it is worth mentioning that the number of observations has to be large if it can yield a valid economic generalisation. One should not generalise on the basis of a very few observations. There are three ways which can be used for deriving economic prin­ciples and theories. They are:
    (a) Experimentation,
    (b) observations,
    (c) statistical or econometric method.

    Reply
  172. Avatar Okolie uchenna Anthony says:
    4 years ago

    Name:Okolie uchenna Anthony
    Course: eco 101
    Faculty: VTE
    Dept: Business Education
    Reg no: 21276005cf

    1. Deductive (also analytical abstract or prior method): ,it’s consist of deriving conclusions from general truths ,by taking few general truths applying them to draw to conclusion. In deductive method of Economic Analysis we proceed from the general to the particular. This is also known as an hypothetical method for some of the assumptions may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions. In deductive you take the following steps
    I.perception of the problem to be inquired into
    ii defining of terms (technical terms used in analysis )
    iii deducing hypothesis from assumptions
    Iv testing of hypothesis

    2 inductive method:it’s starts with the particular and moves to the general . It begins with a particular observation and moves to a general explanation ,it collects observations and develops a theory to fit the facts . In inductive method the follow steps are maintained
    I observation
    Ii formation of hypothesis
    ii generalization
    Iv verification.

    Reply
  173. Avatar Uzoetoh Chinaecherem Clara says:
    4 years ago

    Reg number:20022678IA
    Department:Economics
    Blog address:Uzoetohclara.blogspot.com

    The basic methods of economic analysis are:
    *Inductive method
    *Deductive method

    *Inductive method:It derives economic generalizations on the basis of experience and observations. In this method, detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalizations which follow from the observations collected. It is also known as Empirical method.

    Stages of deriving economic generalizations through inductive method are:
    *Experimentation
    *Observation
    *Statistical or econometric method

    Advantages of inductive method
    *Since it is based on facts, it is more realistic and reliable.
    *Using statistical methods and experimentations make the process more scientific, thus more acceptable universally rather than just depending on your own reasoning and logic.
    *Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of inductive method
    *If the data used is insufficient and faulty, it would lead to faulty conclusions making the results less reliable.
    *It is time-consuming and expensive.
    *Collection of all the data is quite stressful and varies from person to person.

    *Deductive method:In this method we go from general reasoning to specific analysis. It is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalizations and theories.

    Stages of deriving economic generalizations through deductive method:
    *Perception of the problem to be inquired about;He must know the significant variable regarding whose behavior and inter-relationship he wants to derive generalizations.
    *Definition of technical terms and making of assumptions;Simplifying assumptions is quite necessary in order to bring out the importance of really significant factors having a bearing on the problem under investigation. It enables us predict things accurately.
    *Deducing hypotheses through logical deduction;The hypotheses describes the relationship between factors affecting a phenomenon,it establishes the cause and effect relationship between the variables. Through logical process, hypothesis is deduced from the assumptions made.
    *Testing or verification of hypotheses;Two related distinctions must be borne in mind;first, functional relationship between economic variables and a historically sequence of events must be distinguished. Second, the actual course of events is governed by several other factors assumed by a generalization which remains constant under the qualification“other things remaining the same”.

    Advantages of deductive method
    *It doesn’t involve the use of any complex software analysis, only simple deductive logic is required.
    *It focuses upon economic reasoning which is of paramount importance.

    Disadvantage of deductive method
    *Logical fallacy; if the assumptions happen to be logically flawed, the whole process becomes faulty and would give wrong conclusions.

    Conclusion:Both methods of economic analysis are complimentary rather than competitive.

    Reply
  174. Avatar Dike Emmanuella Chinonyerem says:
    4 years ago

    DIKE EMMANUELLA CHINONYEREM
    NURSING SCIENCE
    20411006FA
    The two basic methods of analysis used by Economists are Deductive and Inductive method.
    1) Deductive Method; This method deals with assumptions/facts and then arrive at certain conclusions using logical analysis or our own analytical abilities. The stages involved in this method are:
    I)Observation of the task/issue- there must be a problem to be solved.Here you define the problem precisely.
    II)Making hypothesis-Here you make realistic assumptions that are verifiable(postulates).
    III) Testing your hypothesis with more observations.
    If the hypothesis gets verified, we get economic principles/laws.This method is a simple method that doesn’t involve any complex software analysis and it focuses on economic reasoning which is very important.
    2) Inductive Method:This method formulate principles by using sub-methods (observations, experimentations,statistical methods). The stages involved in this method are;
    I) Observation
    II) Formulation of hypothesis
    III) Generalizing principles
    IV) Verifying against actual facts
    Since inductive method is based on facts,it is more reliable and realistic. Using statistical methods and experimentations make the process more scientific.

    Reply
  175. Avatar Okolie uchenna Anthony says:
    4 years ago

    Name :okolie uchenna Anthony
    Level :100level
    Reg no: 21276005cf
    Course :eco 101
    Faculty:VTE
    Dep: Business education

    1. Deductive (also analytical abstract or prior method): ,it’s consist of deriving conclusions from general truths ,by taking few general truths applying them to draw to conclusion. In deductive method of Economic Analysis we proceed from the general to the particular. This is also known as an hypothetical method for some of the assumptions may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions. In deductive you take the following steps
    I.perception of the problem to be inquired into
    ii defining of terms (technical terms used in analysis )
    iii deducing hypothesis from assumptions
    Iv testing of hypothesis

    2 inductive method:it’s starts with the particular and moves to the general . It begins with a particular observation and moves to a general explanation ,it collects observations and develops a theory to fit the facts . In inductive method the follow steps are maintained
    I observation
    Ii formation of hypothesis
    ii generalization
    Iv verification.

    Reply
  176. Avatar ONYEABOR FAVOUR CHIDERA says:
    4 years ago

    Name; ONYEABOR FAVOUR CHIDERA
    Reg no;20630889HA
    Email; onyeaborfavourchidera2020@gmail.com

    Deductive analysis; this is an approach concerned with developing a hypothesis based on existing theory and then designing a research strategy to test the hypothesis,it means reasoning from the particular to the general.it begins with an expected pattern that is tested against observation.

    Inductive analysis;It refers to the approach that uses detailed reading of raw data to derive concepts and themes.it is used to condense extensive and varied raw data into a brief summary format and to establish clear links between the research objectives and the summary finding derived from the raw data.

    Reply
  177. Avatar Okafor chekwube Veronica REG NO: 2019/251602 Department: NURSING SCIENCES says:
    4 years ago

    Okafor chekwube Veronica. Faculty of health sciences. Department_Nursing sciences. Reg no_2019/251602

    Reply
  178. Avatar OGWO CHERISH IJEOMA says:
    4 years ago

    OGWO CHERISH IJEOMA
    Nursing sciences
    20687679HF

    The basic methods of analysis used by economists are: Deductive method and Inductive method

    1) Deductive method:
    This method represents an approach to the derivation of economic generalisation and theories. In order to derive economic generalisations through deductive logic we begin by identifying the problem, defining technical terms and relevant variables, making assumptions, processing of logical deduction to derive implication, formulation of hypothesis, making predictions and testing them and finally making sure the predictions are in agreement with facts.

    2) Inductive Method:
    The inductive method can also be called Empirical Method. The inductive method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.

    Reply
  179. Avatar Richard Chisom Emmanuel says:
    4 years ago

    Deductive method: The deductive method is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalisations and theories.
    (a) Perception of the Problem:
    In any scientific enquiry, the analyst or theorist must have a clear idea of the problem to be enquired into. He must know the significant variables regarding whose behaviour and interrelationship he wants to derive generalisations. The perception of the problem is by no means an easy task.

    (b) Definition of Technical Terms and Making of Assumptions:
    The next step in the process of deriving economic generalisations is to define precisely and unambiguously the various technical terms to be used in the analysis as well as to state clearly the assumptions he makes to derive generalisations

    2. Inductive Method:
    The inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.

    Reply
    • Avatar Richard Chisom Emmanuel says:
      4 years ago

      Name: Richard Chisom Emmanuel
      Reg no: 20168040CA
      Department: PALG
      Deductive method: The deductive method is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalisations and theories.
      (a) Perception of the Problem:
      In any scientific enquiry, the analyst or theorist must have a clear idea of the problem to be enquired into. He must know the significant variables regarding whose behaviour and interrelationship he wants to derive generalisations. The perception of the problem is by no means an easy task.

      (b) Definition of Technical Terms and Making of Assumptions:
      The next step in the process of deriving economic generalisations is to define precisely and unambiguously the various technical terms to be used in the analysis as well as to state clearly the assumptions he makes to derive generalisations

      2. Inductive Method:
      The inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations

      Reply
  180. Avatar Ikechukwu FearGod Chinedu says:
    4 years ago

    Name: Ikechukwu fearGod chinedu
    Department: philosophy
    Email: bishopfeargod@gmail.com
    The economics methods are:
    a. Inductive method and
    b. Deductive method
    A..Inductive Method:
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical method.
    b. Deductive method of economic analysis involves the process of reasoning analytical and inferring what must necessary follow from a given set of statement that the present will be like the past and the future will be like the present thought not full assured as change remain constant.

    Reply
  181. Avatar Okeke Juliet says:
    4 years ago

    Okeke Juliet Kelechi
    21331434JA
    Economics dept.
    mhizjuliette24@gmail.com

    The basic method of economics analysis used by economists are mainly two which are:
    (a) Inductive method
    (b) Deductive method

    (a)Inductive method: it involves the process of reasoning from particular facts to forming a general principle i.e begins with particular observations and moves to general explanations. Inductive method process can be illustrated as thus :
    Observation of the issue——->Formulation of hypothesis——->Generalizing principles——>Verifying principle against actual fact.

    (b)Deductive method: It involves the process of reasoning from general principles to a particular fact. It derives new conclusion from existing general theories/principles. Deductive method process can be illustrated as thus:
    Observe an existing theory——-> Formulate hypothesis based on existing theory——-> collect data to verify the hypothesis——-> analyse if the collected data supports the hypothesis.

    Reply
  182. Avatar Caroline Jessica Okeke says:
    4 years ago

    Name: Caroline Jessica Okeke
    Department: Sociology & Anthropology
    Matric number: 2020/242834
    Email address: carolinejessicaokeke@gmail.com

    METHODS OF ECONOMIC ANALYSIS
    Every economic analysis necessitate the articulation of laws and conceptions through two methods:
    – Deductive reasoning.
    -Inductive reasoning.

    DEDUCTIVE REASONING
    It begins from undisputed straightforward or introductory facts and then results to resolutions ( construct a hypothesis or theory) using logical analysis or our own analytical abilities. In other words, it is also called a priori reasoning.
    In this form of reasoning, we have 3 stages of deductive reasoning:
    – Researching a task.
    – Creating hypothesis.
    -conducting a test on the hypothesis researched.
    This reasoning provides a hypothesis and it is being verified, it results to general economic principle or law.
    ADVANTAGES OF DEDUCTIVE REASONING
    It is a simple method. It does not involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    DISADVANTAGES OF DEDUCTIVE REASONING
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.
    INDUCTIVE REASONING
    This form of reasoning moves from facts to theory. First, Data collection is performed and then providence of evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data collection of a particular economic theory and then conclusions are drawn. The stages in this method are:
    -Observation.
    -Formulation of a hypothesis.
    -Generalizing principles.
    -Verifying against actual facts.

    ADVANTAGES OF INDUCTIVE REASONING
    Since it is based on facts it is more realistic and reliable.Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    DISADVANTAGES OF INDUCTIVE REASONING
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable. It is a time-consuming process and thus expensive as well. The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  183. Avatar Onyefulu Chiamaka lilian says:
    4 years ago

    NAME: ONYEFULU CHIAMAKA LILIAN
    MATRIC. NUMBER: 2018/250299
    DEPARTMENT:NURSING SCIENCES
    FACULTY: HEALTH SCIENCES AND TECHNOLOGY

    METHODS OF ECONOMICS ANALYSIS:-In every formulation of generalization, formulations of laws there are steps and methods used to analyze it

    THERE ARE BASICALLY TWO METHODS OF ECONOMICS ANALYSIS :
    1. Deductive Method
    2. Inductive Method.

    1. Deductive Method: can also be called abstract, analytical and a prior method which represents an abstract approach to derivation of economics generalization through deductive logics.

    STEPS USED IN DEDUCTIVE METHODS OF ECONOMICS ANALYSIS ARE:
    1. Perception of the problem
    2. Precise definition of technical terms and making of assumption(postulates)
    3. Deduction of hypotheses
    4. Testing of deduced hypotheses.

    1. PERCEPTION OF THE PROBLEM: Is any scientific research, the analyst must have a clear idea of the problem to be researched on. There must be significant variables known to him in accordance to the thing he want to derive generalization on.

    2. PRECISE DEFINITION OF TECHNICAL TERMS AND MAKING POSTULATE: This is the next step in deductive economic analysis, It involves explicit definition of various technical terms to be used in the analysis and clearly stating assumptions. Assumptions may be behaviors pertaining to the behavior of the economic variables or they can be technically related.

    3. DEDUCTION OF HYPOTHESES: Hypotheses are deduced from the assumptions or premises taken. Hypothesis explains relationships between factors affecting a phenomenon and establishes cost and effect relationships between variables.

    4 TESTING OF HYPOTHESES: This means verification of the hypotheses and once hypotheses is verified it can be established as generalization or principle of economics.

    INDUCTIVE METHOD OF ECONOMICS ANALYSIS: It can also be called empirical method, it derives economic generalization based on experience and observations. It does not accommodate few observations, it can only be done when very large observations has been made. It uses statistical or Econometric methods.

    STEPS USED IN INDUCTIVE METHOD OF ECONOMICS ANALYSIS

    1.Perception of the problem
    2. Precise definition of technical terms and making assumptions
    3. Collection of data about the variables
    4. Processing of data collected
    5. Deduction of hypotheses
    6. Testing of hypotheses

    1. PERCEPTION OF THE PROBLEM: This is the first step in any scientific research, there must be clear known problem and significant variables known in accordance to the problem.

    2. PRECISE DEFINITION OF TECHNICAL TERMS AND MAKING ASSUMPTIONS: it involves simple definition of various technical terms in relation to the course of analysis
    And clearly stating the assumptions

    3. COLLECTION OF DATA ABOUT THE VARIABLES: Datas should be collected about the variables related to the problem.

    4. PROCESSING OF DATA COLLECTED: This helps in finding out the relationships between the variables gathered and doing some preliminary thinking on the possible functional relationships between the relevant variables.

    5. DEDUCTION OF HYPOTHESES: Hypotheses are deduced from the data processed or premises taken. Hypothesis describes relationship between affecting phenomenon. One should endeavor to avoid logical fallacies in this process.

    TESTING OF HYPOTHESES: This means verification of hypotheses, when verified it can be established as generalization.

    Reply
  184. Avatar Nwaiwu kelechi perpetua says:
    4 years ago

    There are two basic Methods Involved in Economics Analysis Namely:
    1. Deductive Method
    2. Inductive Method

    1. Deductive Method- the method Derives new Conclusion from the fundamental assumption established by other methods.As a Deductive method,it has a prior Reasoning, certain laws and principles which are assumed to be the analysis of fact .
    In Deductive Method,it involves Information, pattern,tenative Hypothesis etc

    2. Inductive Method- this method Comes with specific details and ends with an abstract.
    The mode of learning becomes more interesting at the outset because of the references students begin with In what they know.
    Inductive Method comprises of the theory, hypothesis, observation and confirmation.

    Reply
  185. Avatar Umeh success precious says:
    4 years ago

    Name: umeh success precious
    Department: social science education
    Reg no:20027052GA
    Email: successprecious41@gmail.com
    Method of economic analysis is classified into two methods which is 1. Deductive method 2.inductive method
    1.deductive method: it starts from unchallenged elementary assumptions and then arrive at conclusions using logical analysis.
    It’s stages are:
    1.observation of tasks (realistic ones)
    2.making the hypothesis
    3.testing the hypothesis using more observation.
    If this hypothesis gets verified we get general economic principles or laws.

    2.inductive method: this type of reasoning flows from facts to theory. First we collect information then move towards providing evidence using economic theories and facts.
    Data is collected about a particular economic theory and then conclusion is drawn.
    The stages are:
    1.observation
    2.fomulating of a hypothesis
    3.generalizing principles
    4.verifying against actual facts.

    Reply
  186. Avatar OGWO CHERISH IJEOMA says:
    4 years ago

    The basic methods of analysis used by economists are: Deductive method and Inductive method

    1) Deductive method:
    This method represents an approach to the derivation of economic generalisation and theories. In order to derive economic generalisations through deductive logic we begin by identifying the problem, defining technical terms and relevant variables, making assumptions, processing of logical deduction to derive implication, formulation of hypothesis, making predictions and testing them and finally making sure the predictions are in agreement with facts.

    2) Inductive method:
    The inductive method can also be called Empirical Method. The inductive method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.

    Reply
  187. Avatar Caroline Jessica Okeke says:
    4 years ago

    Name: Caroline Jessica Okeke
    Department: Sociology & Anthropology
    Matric number: 2020/242834
    Email address: Carolinejessicaokeke@gmail.com

    METHODS OF ECONOMIC ANALYSIS

    Every economic analysis necessitate the articulation of laws and conceptions through two methods:

    – Deductive reasoning.
    -Inductive reasoning.

    DEDUCTIVE REASONING
    It begins from undisputed straightforward or introductory facts and then results to resolutions ( construct a hypothesis or theory) using logical analysis or our own analytical abilities. In other words, it is also called a priori reasoning.
    In this form of reasoning, we have 3 stages of deductive reasoning:
    – Researching a task.
    – Creating hypothesis.
    -conducting a test on the hypothesis researched.

    This reasoning provides a hypothesis and it is being verified, it results to general economic principle or law.

    ADVANTAGES OF DEDUCTIVE REASONING

    It is a simple method. It does not involve the use of any complex software analysis, etc. only simple deductive logic is required.

    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    DISADVANTAGES OF DEDUCTIVE REASONING

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    INDUCTIVE REASONING

    This form of reasoning moves from facts to theory. First, Data collection is performed and then providence of evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data collection of a particular economic theory and then conclusions are drawn. The stages in this method are:

    -Observation.
    -Formulation of a hypothesis.
    -Generalizing principles.
    -Verifying against actual facts.

    ADVANTAGES OF INDUCTIVE REASONING

    Since it is based on facts it is more realistic and reliable.Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.

    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    DISADVANTAGES OF INDUCTIVE REASONING

    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable. It is a time-consuming process and thus expensive as well. The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  188. Avatar Ezekwem Armstrong says:
    4 years ago

    Name- Ezekwem Armstrong
    Reg number-20856269GA
    Department- philosophy
    Email address- armstrongezekwem@gmail.com
    Faculty-sociail sciences

    Economic analysis involves the formulation of laws and generalization through two methods (a) Deductive (b)inductive.
    (1)Deductive method is also called a priori reasoning.it is also called abstract,analytical and represents an abstract approach to the derivation of economic generalisations and theories.it is also seen as a conclusion after having interpretations from premises.in this kind of reasoning we go from a general to specific.
    The stages in deductive includes (i) observation of a task or issue,making the hypothesis.
    (ii)Testing the hypothesis using more observations etc.
    It is a simple method that doesn’t involve the use of any complex software analysis etc.

    (2)Inductive methods which is also called empirical
    Method derives economics generalisations on the
    Basis of experience and observation.
    In this method, detailed data are collected with regardes,a certain economics phenomenon and effort is then made to arrive at certain generalisations which follow from observations collected.but it is worth mentioning that the number of observations has to be large if it can yield a valid economic generalization.one should not generalize on the basis of a very few observations.

    The deductive profiling method relies on the
    application of deductive reasoning to the observable evidence.investigators collect general information about something base on the profilers experience, knowledge and critical thinking.

    The deductive method involves several distinctive steps
    (a)A problem is stated
    (b) information is collected
    (c)A working hypothesis is formulated
    (d) The hypothesis is tested
    (e)Result of the test are examined
    (f) one or more conclusions are reached

    Reply
  189. Avatar Onah Ujunwa Charity says:
    4 years ago

    NAME: Onah Ujunwa Charity
    FACULTY: Health Sciences
    DEPARTMENT: Nursing Science
    JAMB REG NUMBER: 20642591IA

    METHODS OF ECONOMIC ANALYSIS
    They are:

    1. Deductive Method
    2. Inductive Method

    1.Deductive Method:
    The deductive method is also known as the abstract or analytical method. In this method, conclusions are derived from general truths, i.e. it proceeds from general to particular. The classical and neo-classical school of economists such as Ricardo, Mill, Malthus, Marshal, Pigou, etc. applied the deductive method in their economic investigations.
    In Deductive method of Economic Analysis we proceed from the general to the particular. This is also known as an hypothetical method for some of the assumptions may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions. In economics we start with very simple premises and work up gradually or more and more complex hypotheses.

    A complete form of deductive method consists of three stages, viz.,

    observation;
    deductive reasoning and
    instance and testing by means of further observations.

    MERITS OF DEDUCTIVE METHOD

    1. Deductive method is exceedingly simple. For example, the law that the utility derived by an individual from a commodity goes on diminishing with every successive addition is a self-evident truth from which we may draw many logical conclusions, viz., larger the stock of money, the lower shall be the utility of money; rich persons have lesser marginal utility of money than the poor people; so taxes should not be levied on proportional basis. If taxes are levied proportionately, the sacrifice of the poor will be larger than the rich.

    2. Deductive method obviates the necessity of experimentation. Economics being a social science, experimentation may not be available as in the case of physics or chemistry. So, the next best alternative to experiment is deductive reasoning.

    3. The deductive method results in accuracy and exactness in generalization, because of logical reasoning. The method gives a very high standard of precision in abstract economic reasoning.

    DEMERITS OF DEDUCTIVE METHOD

    1. Deductive generalizations started on wrong premises will be dangerous when such generalization claim universal validity. Then such faulty generalizations are made use of in framing government policies, the results would be nothing but disastrous. For example, J.B.Say, claimed universal validity for his ‘Law of Markets’ in which he maintained that supply creates its own demand and there will not be over-production in the market. But this celebrated ‘Law of Market’ was torn to pieces when critics proved that Say’s Law was wrong and overproduction would be possible.

    2. In deduction there is too much of abstraction and economists by means of their intellectual exercises produce only “intellectual toys” having little connection with reality.

    3. Deduction is based mainly on assumptions which are perfectly valid. If assumptions are wrong, generalizations made on the basis of wrong assumptions will be imperfect and invalid.

    2. INDUCTIVE METHOD

    In this method, economists proceed from a practical angle to problems of science to reduce the gulf between theory and practice. Induction is done by two forms, viz. experimentation and statistical form. Facts are collected first, arranged and conclusions are drawn. Then these general conclusions are further verified with reference to actual facts.

    The inductive method is generally associated with the statistical form of inductions. The statistical approach has a larger field in economic investigations than the method of experimentation.
    Further, the method of statistical induction is indispensable for the formulation of economic policy. Malthus presented his famous theory of population only after studying the facts of population in various countries; He then used statistics to support his theory. Similarly Engel, the German statistician employed inductive method and used statistics to formulate his law of consumption.

    MERITS OF INDUCTIVE METHOD

    1. It is highly practical add realistic as it describes things as they are.

    2. It is helpful in verifying the conclusions of the deductive method.
    3. Economic laws under this method are not universal but valid only under certain conditions.

    DEMERITS OF INDUCTIVE METHOD

    1. When the investigators lack a balanced judgement there is the risk of drawing hurried conclusions based on inadequate and irrelevant facts and data.

    2. Collection of facts in the inductive process is a highly complex and complicated job warranting extraordinary understanding to alienate economic from non-economic factors.

    3. Mere induction alone will not deliver goods unless it is supplemented by means of deductive reasoning. Without deduction, the inductive method would result in producing only a mass of unrelated and unconnected facts.

    Reply
  190. Avatar Obi Amarachi celestina says:
    4 years ago

    Name: OBI AMARACHI CELESTINA
    Reg No: 20855804BA
    Dept: PALG
    Matric No: 2020/243303
    Email: amaratina20@gmail.com

    1 Inductive method: The inductive method which is also called empirical methods drives economic generally on the basis of experienment and observation. Therefore inductive method or reasoning is a type of method or reasoning that involves drawing a general conclusion from a set of specific observations. In this method is detailed data are collected with regard to a certain economic phenomenon and efforts is made to arrive at a certain generalizations which follows from the observations collected.

    There are three ways which can be used for driving economic principles and theories
    1 Experiementation
    2 Observations
    3 statistical or econometric methods.

    Various steps in inductive method
    1 the first step is to identify the problems.
    2 The second step is defining technical and variables related to the problem
    3 the third step which is very important in the inductive method is the collection of data about the variables related to the problem and doing some preliminary thinking about the possible functional relationships between the relevant variables.
    4 Another important step is the constructions of economic theories: this is processing of data collected and finding out what relations between the variables actually hold good.

    2 Deductive method: In deductive method of economic Analysis, we proceed from general to the particular. This is also known as an hypothetical method for some of the assumptioms may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions.
    The Deductive method drives new conclusions from fundamental assumptions or from the truth established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true to the analysis of facts.

    They are steps of driving economic generalizations through deductive method:
    1 perception of the problem to be enquird into: the analyst must have a clear idea of the problem to be enquird into, in order not to make mistakes.
    2 Definition of technical terms and making of assumptions
    Deducing hypotheses, that is driving conclusions from the premises through the process of logical reasoning
    4 Testing hypothesis deduced.

    Reply
  191. Avatar Ogbu Patience Chizoba : 2019/246240 says:
    4 years ago

    Deductive reasoning :Deductive method is also known as abstract or analytical method. This method is based on a priori reasoning and conclusions are drawn from certain fundamental assumptions. It moves from general assumption to the specific application. The reasoning gives hypothesis which when verify gives economic principles or laws.
    Inductive reasoning : Inductive method moves from particular facts to generalization.The facts are collected first, arranged and conclusions are drawn. The general conclusions are further verified with reference to actual facts.

    Reply
  192. Avatar Umeh success precious says:
    4 years ago

    Name: umeh success precious
    Department :social science education
    Reg no:20027052GA
    Email:successprecious41@gmail.com
    In economic analysis two methods are being used 1. The deductive method 2.the inductive method.

    1.deductive method: it starts from unchallenged elementary assumption and then arrive at conclusions using logical analysis or our analytical abilities. It is also called abstract, analytic method and a priori reasoning.
    The stages are:
    -observation of a task (realistic one)
    -making the hypothesis
    -testing the hypothesis using more observation
    Note: if this hypothesis gets verified we get general economic principles or laws.

    2.inductive method: this type of reasoning flow from facts to theory. First we collect information and then move towards providing evidence using economic theories and facts.
    Data is collected about a particular economic theory then conclusion is drawn.
    The stages are:
    -observation
    -formulation of a hypothesis
    -generalizing principles
    -verifying against actual facts.

    Reply
  193. Avatar uzormechina wisdom udodirichukwu says:
    4 years ago

    name ::uzormechina wisdom udodirichukwu
    Matri number ::2020/243134
    Department :: public administration and local government
    Gmail :: wisdomuzormechina@gmail.com

    *The two method of economic analysis are*
    1. Deductive method
    2. Inductive method

    (1). Deductive method ::: this is also called a “prior reasoning ” we start by perceiving the problem, give an analysis into the problem, observe the problem, define precisely the technical terms, “based on the definition ” you make hypotheses (assumption), then the assumption at this stage becomes a postulate, test your hypotheses (this is to know it it will be accepted or rejected), then if the hypotheses gets verified it becomes a theory.

    (2). Inductive method ::: this method also known as empirical method that derives generalization. It is also involves the collection of facts, drawing analytic conclusion with them and testing if with other facts.
    There are basically three ways for deriving economic priciciple and theories they are
    1. Experimentation ::: this uses econometri package like e-views, strata.
    2. Observation :: you observe your hypotheses
    3. Econometri methods ::: makes use of statistical tools and economic theories in combination to estimate the economic variable and to forecast the intended variables.

    Reply
  194. Avatar Ugwu adanna chiamaka says:
    4 years ago

    Name: Ugwu adanna chiamaka
    Jamb registration number: 20694893BA
    Department: public administration and local government.
    Email: ugwu.adannachiamaka@gmail.com

    METHOD OF ECONOMIC ANALYSIS
    There are two basic methods of economic analysis namely
    I Deductive method
    ii Inductive method
    DEDUCTIVE: The deductive method is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalisations and theories.
    The principal steps in the process of deriving economic generalisations through deductive logic are:
    (a) Perception of the problem to be enquired into;
    (b) Defining precisely the technical terms and making appropriate assumptions, often called postulates or premises;
    ADVERTISEMENTS:
    (c) Deducing hypotheses, that is, deriving conclu­sions from the premises through the process of logical reasoning; and
    (d) Testing of hypothesis deduced.
    VARIOUS STEPS IN DEDUCTIVE METHOD
    1 identify the problem
    2 Defining technical terms and relevant variables
    3 Making Assumption
    4 process of logical deduction to derive implications
    5 Formulation of hypothesis
    6 Making predictions and testing them
    7 Predictions are in agreement with facts.

    2. Inductive Method:
    The inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.
    But, it is worth mentioning that the number of observations has to be large if it can yield a valid economic generalisation. One should not generalise on the basis of a very few observations. There are three ways which can be used for deriving economic principles and theories.
    They are:
    (a) Experimentation,
    (b) observations,
    (c) statistical or econometric method.

    Various Steps in Inductive Method:
    Various steps are gone through in developing economic theories through inductive method. The first step, as in the deductive approach, is to identify the problem. The second step is defining technical terms and variables related to the problem.
    It is the next step which is peculiar to the inductive method, namely, the collection of data about the variables related to the problem and doing some preliminary thinking about the possible functional relationships between the relevant variables.
    The next important step in the construction of economic theories in this method is the processing of data collected and finding out what relations between the variables actually hold good. From this, a theory is developed which can be further refined and tested through statistical methods.
    Once the theory has been developed one can make predictions on its basis, as is done in the deductive approach. If predictions of theory are in agreement with the facts and actual behaviour of the economy, then a new reliable theory has been developed. If a new theory explains “how things work” better than the existing ones, it replaces them.

    Conclusion: Integration of Two Methods:
    Now, the controversy which existed among the earlier economists as to whether deductive or inductive approach is more appropriate in developing economic theories and principles has been resolved. The modem viewpoint in this regard is that both are needed for the proper development of scientific economic theories. Indeed, the two are complementary rather than competitive.

    Reply
  195. Avatar Chukwuma ogochkwu Susan says:
    4 years ago

    Name.Chukwuma Ogochukwu susan
    Department. Combined social science
    Course. Eco 101
    Reg number. 242910

    The method of economics analysis are
    Deductive method
    Inductive method

    Deductive method is also the analytical abstract or prior method. It derives conclusion from general truths takes few general principles and applies conclusions.

    Steps in deductive method
    1 perception of the problem to be inquired into
    2 Defining of terms
    3 Deducing hypothesis from the assumption
    3 Testing of hypothesis

    Inductive method, it lnvolves the process of reasoning from particular facts to general principle. It derives economic generalization in the basis of experimentations, observation and statistical methods.
    Steps in inductive method
    Observation
    Formation of hypothesis
    Generalization
    Verification

    Reply
  196. Avatar OKAFOR CHIAMAKA MEDELINE REG NO: 21640878EA Department: NURSING SCIENCES says:
    4 years ago

    The basic methods of economic analysis used by Economists are:
    A. Deductive method
    B. Inductive method

    A. Deductive method: It is also known as abstract method.
    It consists in deriving conclusions from general truths.
    It takes a few general principles and applies them,then draws conclusions.
    The classical and neo-classical school of Economists like J.S Mill,Malthus,applied this method in their economic investigations.

    Steps of Deductive method
    1. Perception of the problem to be inquired into: i.e the economist must have a clear and precise idea of the problem to be inquired.
    2. Defining of terms: i.e to define clearly the technical terms used in analysis. Further assumptions made by the theory are then made precise.
    3. Deducing hypothesis from the assumptions.
    4. Testing of hypothesis: i.e verification of hypothesis through direct observation in the real world ,and statistical methods.

    Merits of Deductive method
    1. It is near to reality,less time consuming,less expensive.
    2. Mathematical techniques are used in deducing theories of economics,which brings exactness and clarity in economic analysis.
    3. The method is analytical
    4. It helps in deriving economic theories using limited scope of experimentation.

    Demerits of Deductive method
    1. It is simple and precise only if the assumptions are VALID. More often ,the assumptions turn out to be half truths and are misleading,or have no relation to reality.
    2. The method is highly abstract,and requires a great deal of care,to avoid bad logic and faulty economic reasoning.
    3. Prof Learner described it as “armchair analysis” i.e the premises from which inferences are drawn,may not hold good at all times.

    B. Inductive method
    It is also called empirical method. It was adopted by the “Historical School of Economists”. It involves the process of reasoning from particular facts to general principles. It derives economic generalization on basis of:
    i. Experimentation
    ii. Observation
    iii. Statistical methods
    In this method,data is collected about a certain economic phenomenon, systematically arranged,and conclusions are drawn.

    Steps of Inductive method
    1. Observation
    2. Formation of hypothesis
    3. Generalization
    4. Verification

    Merits of Inductive method
    1. It is based on facts. The method is realistic.
    2. The method is more reliable because it makes use of statistical techniques to test economic principles.
    3. The method is dynamic.
    4. The method helps in future investigations.

    Demerits of Inductive method
    1. If conclusions are drawn from insufficient data,the generalizations may be faulty.
    2. The collection of data is a difficult task and the method employed differs from investigator to investigator. This may lead to different results for same problem.
    3. The method is time consuming and expensive.

    CONCLUSION
    Both methods have weaknesses. We cannot rely exclusively on any one. Modern Economists are of the view that the methods are complimentary. We can apply any or both,as situation demands.

    Reply
  197. Avatar Ibezim Blessing Chinyere says:
    4 years ago

    Name: Ibezim Blessing Chinyere
    Reg number: 22248949GF
    Email: ibezimblessing36@gmail.com

    Basic methods of analysis used by economist.
    1. Deductive method: this is also called abstract method,it represents an abstract approach to the derivation of economic theories. There are certain steps used in deriving these theories and they are;
    a. Perception of the problem to be enquired,
    b. Defining the technical terms and making appropriate assumptions,often called postulates,
    c. Deducing hypothesis,deriving conclusions through logical reasoning,
    d. Testing of hypothesis deduced.
    2. Inductive method: also called empirical method. This method derives economic generalizations on the basis of experience and observations. Data are collected with regard to a certain economic phenomenon and efforts is then made to arrive at certain theories that follows from the observations.
    Ways used for deriving economic principles and theories;
    a. Experimentations,
    b. Observations,
    c. Statistical or econometric method.

    Reply
  198. Avatar Ejiofor chiamaka Jane says:
    4 years ago

    Name: Ejiofor chiamaka Jane
    Email: ejioforchiamaka20@gmail.com
    Reg no: 20641402EA
    Inductive reasoning is a method of reasoning in which premises are viewed as supplying some evidence,but not full assurance,of the truth of conclusion.it is also described as a method where one’s observation and experience including what is learned from others are synthesized to come up with a general truth.
    Deductive reasoning,also known as deductive logic,it is the process of reasoning from one or more statements to reach a logical conclusion as that of contributional, and links premises with conclusion.

    Reply
  199. Avatar Chinkata Chibuzor Emmanuel says:
    4 years ago

    THE_DEDUCTION_METHOD.

    This method as the name implies involves the
    reseaoning from the general to the particular. The deductive method provides us with new results from fundamental assumptions or from facts established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of facts.

    Then inferences are drawn which are verified against observed facts. #BACON himself described deduction method as a “descending process” in which we proceed from a general principle to its consequences. Mill characterised it as a priori method, while others called it abstract and analytical.
    The stages in deductive reasoning are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis by being very observate.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.
    #MERITS_OF_DEDUCTION_METHOD .
    1. This method only requires simple,deductive and logic work or reasoning.
    2. It helps economists as it focus upon economic reasoning which is overriding.
    #DEMERITS_OF_DEDUCTION_METHOD.
    1.This method starts or is headed by an assumption, therefore a faulty conclusion is drawn from any and all assumptions wrongly made.

    #THE_INDUCTION_METHOD.
    It can be described as a reasoning which takes place in an ascending order. Here facts are collected, arranged, analysed and then conclusions are drawn from these facts. This method can also be called the #HISTORICAL_METHOD. This very method requires the economist to draw gereralisations, and verify the conclusions by applying them to subsequent events.
    #Stages involved here are:
    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    #MERITS_OF_THIS_METHOD.
    1. It is based on facts therefore inference drawn from it is more realistic and reliable than that of the #DEDUTION_METHOD
    2. Statistical methods and experimentations are employed here, making the process more scientific, thus, more acceptable universally.

    #DEMERITS_OF_INDUCTION_METHOD
    1. Once the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    2. It is a time-consuming process and thus expensive as well.

    Reply
  200. Avatar Ugwuada Samuel mmadukaihe says:
    4 years ago

    NAME: UGWUADA SAMUEL MMADUKAIHE
    REG.NO. 20689639GA
    DEPARTMENT: PHILOSOPHY.
    There two method used in economics analysis.;they are.
    No 1.
    DEDUCTIVE METHOD: This is also called priori or abstract method. here we start unchallenged elementary or redimentary assumption, then arrive at conclusion.
    Stages that it take to reach conclusion are.
    a. Observation of task or issue.
    b. Making appropriate assumption, often called postulates or premises.
    c. Making the hypothesis
    C. Testing the hypothesis using more observations.

    No 2.
    INDUCTIVE METHOD; this type of generalizations flows from facts to theory.it also refers as empirical method.
    In inductive method the economist collect information and facts and then move towards providing evidence using economic theory and facts.
    This method formulates principles using the sub-methods like. Observation, experimentations, statistical methods.
    There are many stages economist can arriveus at his theory are;
    a.Observation
    b. Formulation of a hypothesis
    C. Generalizing the principles
    D. Verifying against actual facts.

    Reply
  201. Avatar Reallife Olaojo Akpah 2019/241493 says:
    4 years ago

    PURE AND INDUSTRIAL CHEMISTRY

    INDUCTIVE REASONING is a type of reasoning that involves drawing a general conclusion from a set of specific observation.

    Advantages of Inductive Reasoning
    1. It provides first hand knowledge and information by actual observation.
    2, it is future oriented. It gathers specific
    information, then draws a general conclusion which predicts what will be found in the future.
    3. It increases the creativity of the research.

    Disadvantages of Inductive Reasoning
    1. It is limited in scope, and inaccurate inference (false conclusions)

    Example of inductive Reasoning: ” Pearl leaves for school 7 am, Pearl is always early.”

    DEDUCTIVE REASONING is the process of reasoning from one or more statements to reach a logical conclusion. Or a type of logical thinking that starts with general idea and specific conclusion.

    Advantages of Deductive Reasoning
    1. It is a downward process of thoughts, and leads to useful results.
    2. It is straight and to the point.
    3. It is less time consuming.
    4. It allows more time for practice and application.

    Disadvantages of Deductive Reasoning
    1. It does not give any new knowledge, because its premises are already tested. It only proves the past or present truths.
    2.it is reduced merely to a method for verification.
    3. It encourages dependence on other resources.

    Example of Deductive conclusion: ” All men are mortal. Raymond is a man”. Therefore, Raymond is mortal.

    Reply
  202. Avatar Sylvanus favour chinagorom says:
    4 years ago

    Name: sylvanus favour chinagorom
    Matric no :2020/242141.
    Email address: sylvanusfavouchi7@gmail.com
    Department: Business education.
    METHODS OF ECONOMIC ANALYSIS
    Any economic analysis involves the formulation of laws and generalizations through two methods: Deductive and Inductive.
    Inductive method: is also called empirical method .it involves the process of reasoning from particular facts to general principle. It also makes use of econometric packages.This method derives economic generalization on the basis of:
    *Experimentations
    *observations
    *Statistical methods.
    Deductive method:In deductive method of economic analysis we proceed from the general to the particular or main.This is also known as hypothetical method for some of the assumptions may not correspond to actual facts,but very actual facts which may be used as premise for starting, reasoning and drawing conclusions.

    Reply
  203. Avatar Ezeobi Christine says:
    4 years ago

    NAME: Ezeobi Christine Oluebube
    REG NO: 2019/244588
    E-MAIL ADDRESS: oluebube.ezeobi.244588@unn.edu.ng
    DEPARTMENT: Pure and Industrial Chemistry.

    The methods of economic analysis used by economists includes:-
    Inductive method and Deductive method.
    • INDUCTIVE METHOD:
    Theory~hypothesis~observation~confirmation.
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    ×Observation
    ×Formulation of a hypothesis
    ×Generalizing principles
    ×Verifying against actual facts.

    This method has it’s advantages and disadvantages,
    Its advantages includes:
    -Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    -Since it is based on facts it is more realistic and reliable.
    -Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Its disadvantages includes:
    -It is a time-consuming process and thus expensive as well.
    -The collection of all the data is not an easy job and varies from person to person. As to how they collect data.
    -If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    • DEDUCTIVE METHOD:
    Information~pattern~tentive hypothesis~theory.
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    ×Observation of a task/ issue
    ×Making the hypothesis
    ×Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.
    This method also has its advantage and disadvantage.
    Its advantages includes;
    -This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    -It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    Its disadvantage is the fact that in this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Reply
  204. Avatar Ezema Amarachi julieth says:
    4 years ago

    Name: Ezema Amarachi julieth
    Reg number:20690143BA
    Dept: Public Administration and Local Government

    METHODS OF ECONOMICS ANALYSIS
    An economic theory derives laws or generalization 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 Economics Analysis:
    The Deductive method is also named as analytical, abstract,prior method.The deductive method consists in deriving conclusion from general truth , takes few general principles and applies them draw conclusions.
    Inductive method of Economics Analysis:
    Inductive method which is called empirical method was adopted by the Historical school of Economist .It involves the process of reasoning from particular facts to general principles.
    This method derives economic generalization on the basis of
    (1) Experimentations
    (2)Observations and
    (3)Statistical methods
    In this method, data is collected about a certain economic phenomenon .
    These are systematically arranged and the general conclusion are drawn from them

    Reply
  205. Avatar Okechukwu precious says:
    4 years ago

    Name: Okechukwu Precious Chidera
    Dept: Business Education
    Reg No: 21362016DF
    Email: okechukwuprecious960@gmail.com
    Questions
    What are the basic methods of analysis used by Economists? Briefly and convincingly discuss each of them.
    Answers:
    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.
    1. Deductive reasoning
    2. Inductive reasoning.

    * The Deductive reasoning otherwise known as a priori reasoning. We begin with unquestioned basic or rudimentary assumptions/facts and then use logical analysis or our own analytical ability to get conclusions (create a hypothesis or theory). 
    We proceed from general to specific in this type of reasoning.The stages in deductive reasoning are:
    -Observation of a task/ issue
    -Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    *The inductive method involves collection of facts, drawing conclusions from them and testing the conclusions by other facts. On the basis of experience and observation, the inductive technique, also known as the empirical method, develops economic generalization.
    Experimentation, observation, and statistical or econometric methods are the three methods that can be used to derive economic principles and hypotheses.

    Reply
  206. Avatar Okoye Steve Chukwuzulum says:
    4 years ago

    Name : Okoye Steve Chukwuzulum
    Dept : Nursing science
    Reg no : 20642470CA
    Email: chukwuzulumsteve@gmail.com

    1. Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    Disadvantages of Deductive Method

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    2. Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of Inductive Method

    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  207. Avatar Onyeoma Cynthia Amarachi. Reg No:2019/241511 says:
    4 years ago

    Eco101
    Name: Onyeoma Cynthia Amarachi
    Reg No: 2019/241511
    Department: Pure and industrial chemistry
    Email: Amarachi.Onyeoma241511@unn.edu.ng
    Topic: what are the basic methods of analysis used by economist
    The basic method of analysis used by economist are as follows:
    1. Deductive method analysis
    2. Inductive method analysis

    Deductive method analysis:- it can also be called priority reasoning. In the sense that we go from general to specific, that is we start from unchallenged elementary facts and then arrives at conclusions using our own analytical ability. The stages in deductive reasoning are listed below.
    – Observation of a task or issue which automatically leads to appropriate assumption.
    – making the hypothesis which is deriving into conclusion through the process of logical reasoning.
    – Testing the hypothesis deducted using more observation
    Inductive method analysis:- It can also be called empirical method. In this type of reasoning, collection of information and facts providing evidence using economic theory and facts. Data is collected about a particular economic theory before conclusion.
    The stages in this method are as follows:-
    – Observation
    – formulation of a hypothesis
    – Generalizing principles
    – Verifying against actual facts

    Reply
  208. Avatar Assi Sylvia idara says:
    4 years ago

    Name: Assi Sylvia Idara
    Reg no.: 2019/243322
    Department: pure and industrial chemistry
    The two methods used by economists are:
    1. Inductive reasoning
    2. Deductive reasoning
    1. Inductive reasoning: it is a type of logical thinking that involves forming generalizations based on specific incidents you’ve experienced, observations you’ve made, or facts you know to be true or false.it is an important critical thinking skill that many employers look for in their employees. Bacon described it as “an ascending process”. It expects the economist to be primarily an economic historian who should first collect material, draw generalizations and verify the conclusions by applying them to subsequent events. Inductive reasoning is dynamic, realistic, future enquiries and statistical method. It’s demerit is: it is time consuming and expensive.

    2. Deductive reasoning: is an inference from the general to the particular or from the universal to the individual. The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of facts, then inferences drawn which are verified against observed facts. Bacon described deductive reasoning as “a descending process ” in which we proceed from a general principle to it’s consequences. Deductive reasoning is real, simple, powerful and exact. It’s demerit is: it is based on assumptions and it is abstract

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  209. Avatar Nwachukwu chinaza Maryann 20155664FF. Department of Nursing sciences says:
    4 years ago

    THE BASIC METHOD OF ANALYSIS USED BY ECONOMISTS . . An economy theory derives laws or generalization through two methods.
    1.Deductive method. 2.inductive method.
    Deductive method of economic analysis- the deductive method is also called analytical, abstract, or prior method .it represent an abstract approach of economic generalization and theories. Deductive method may involved steps which aids in deriving economic generalization. They are perception of the problem to be inquired into that is the analyst must understand ,interpret and be able to have a clear idea of the problems he is to handle..
    Secondly the next step is to define clearly the technical term used in analysis ,further assumption made for a theory should also be precise. The third step in deriving generalization is making hypothesis from the assumption taken.
    Finally before establishing laws or generalization, hypothesis should be verified through direct observation and through statistical method. Merits of Deductive methods– it is time consuming and brings exactness and clarity in economic analysis, it also help in deriving economic theories.. Shortcomings or demerits of deductive methods-it is highly demerited because it requires a great deal of care to avoid bad logic and faulty economic reasoning and other highly unrealistic assumptions which may not have operational significance.
    INDUCTIVE METHOD. This is also called the empirical method which derives economic generalization on the basis of experience and observation..the observation has to be large to yield a valid economic generalization. There are three steps which can be used for deriving economic principle and theories they are 1.experimentation
    2.observation
    3.statistical method.
    Main step involved in the application of inductive method are observation that is a collection of data then making of hypothesis followed by generalization and lastly verification.
    Inductive method is based on facts, that is the method is realistic, further more inductive method is more reliable and is also dynamic and mosty helps in future investigation. These are merits of inductive method.
    It shortcomings or demerit that weakens the method are when conclusion are drawn from insufficient data the generalization obtained may be faulty.
    Secondly it is time consuming and also the method or source of collection of data differs from investigators to investigators.
    In conclusion deductive and inductive method have both weaknesses and we cannot rely exclusively on any of them but they are highly needed for scientific thought and analysis.

    Reply
  210. Avatar Name: Ibeh Augustine Ifechukwu. says:
    4 years ago

    Name: Ibeh Augustine Ifechukwu
    Registration no: 20686430FA
    Department: Nursing/Nursing sciences.
    Email: ibehaugustine5000@gmail.com

    METHODS OF ECONOMIC ANALYSIS.
    The basic methods of analysis used by economics are;
    1. Deductive method.
    2. Inductive method.

    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.

    STEPS OF DEDUCTIVE METHOD
    The main steps involved in deductive logic are under:
    i. Perception of the problem to be inquired into: In the process of deriving generalization, 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 be precise.
    iii. Deducing hypothesis from the assumptions: The third step is deriving generalizations is deducing hypothesis from the assumptions taken.
    iv. Testing of Hypothesis: Before establishing laws or generalizations, hypothesis should be verified through statistical methods. ( Their inverse relationship between price and quantity demanded of a good is a well established generalizations.

    MERITS OF DEDUCTIVE METHOD
    The main merits of deductive method are as under:
    i. This method is near to reality. It is less time consuming and less expensive.
    ii. The use of mathematical techniques in deducing theories of economics brings exactness and clarity in economic analysis.
    iii. There being limited scope of experimentation, the methods helps in deriving economic theories.
    iv. The method is simple because it is analytical.

    DEMERITS OF DEDUCTIVE METHOD
    i. The deductive method is simple and precise only if the underlying assumptions are valid. More often the assumptions turn out to be based on half truths or have no relation to reality. The conclusions drawn from such assumptions will, therefore, be misleading.
    ii. Professor Learner describes the deductive method as ‘armchair’ analysis. According to him, the premises from which inferences are drawn may not hold good at all times, and places. As such deductive reasoning is not applicable universally.
    iii. The deductive method is highly abstract. It requires; a great deal of care to avoid bad logic or faulty economic reasoning.
    As the deductive method employed by the classical and neo-classical economists led to many facile conclusions due to reliance on imperfect and incorrect assumptions, therefore, under the German Historical school of economists, a sharp reaction began against this method. They advocate a more realistic method for economic analysis known as inductive method.

    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 with particular facts to general principle.
    This method derives economic generalization on the basis of i. Experimentation, ii. Observation and iv. Statistical methods.
    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, 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’re guided by patriotism or they are devoid of common Sense.

    STEPS OF INDUCTIVE METHOD
    The main steps involved in inductive method are:
    1. Observation
    2. Formation of hypothesis
    3. Generalization
    4. Verification.

    MERITS OF INDUCTIVE METHOD
    1. It is based on facts as such the method is realistic.
    2. In order to test the economic principles, methods makes statistical techniques. The inductive method is, therefore, more reliable.
    3. Inductive method is more dynamic. The changing economic phenomenon are analyzed and on the basis of collected data, conclusions and solutions are drawn from them.
    4. Inductive method also helps in future investigations.

    DEMERITS OF INDUCTIVE METHOD
    1. If conclusions are drawn from insufficient data, the generalizations obtained may be faulty.
    2. The collection of data itself is not an easy task. The sources and methods employed in the collection of data differ from investigator to investigator. The results, therefore, may differ even with the same problem.
    3. The inductive method is time consuming and expensive.

    Ind

    Reply
  211. Avatar Odo Kosisochukwu Agatha says:
    4 years ago

    Name: Odo Kosisochukwu Agatha
    Faculty: physical science
    Dept: pure & industrial chemistry
    Reg: 2019/242722
    Code: Eco 101
    Email: kosisochukwuodo@yahoo.com
    Level: 200
    METHOD OF ECONOMICS ANALYSIS
    1 INDUCTIVE METHOD
    2. DEDUCTIVE METHOD
    INDUCTIVE METHOD: This can also be called emperical method. It derives economic generalizations on the basis of experiment and observation. Detailed data are collected with regard to a certain economic phenomenon and is made to reach a certain generalization which follow from the observation collected. Experiment, observation and econometric methods can be use to derive economic principles.

    DEDUCTIVE METHOD: This can also be called abstract, analytical and prior methods.
    The principle steps in the process of economics generalization through deductive methods are:
    i Perception of the problem to be inquired
    ii Defining precisely the technical terms and making appropriate assumption
    iii Deducing hypothesis that is deriving conclusion from the process of logical reasoning
    iv Testing of hypothesis deduced

    Reply
  212. Avatar Eke Joshua Okwuchukwu says:
    4 years ago

    NAME: EKE JOSHUA OKWUCHUKWU

    JAMB REGISTRATION NUMBER: 20033384DF

    MATRIC NUMBER: 2020/242585

    DEPARTMENT: ECONOMICS

    G-MAIL ADDRESS: ekejoshuaokwuchukwu@gmail.com

    METHODS OF ECONOMIC ANALYSIS:

    They are divided into two. They are ;

    1. Deductive Method
    2. Inductive Method

    1. DEDUCTIVE METHOD :
    The deductive Method is based on an abstract approach to the derivation of economic generalizations and theories.
    The steps involved in deriving these theories and generalizations include:

    a) Perception of the problem: This entails conscious understanding of the problem under consideration.

    b) Precisely defining the technical terms and making assumptions. These assumptions maybe behavioural (behaviour of economic variables) or technological (relating to the state of technology).
    But these assumptions do not apply in some cases.

    c) Deduction of hypothesis based on those assumptions made.
    Hypothesis can be viewed as an assumption taken to be true for the purpose of further argument or investigation.

    d) Testing and verifying these hypothesis:
    The deducted hypothesis needs to be verified before they are established as generalizations or Economic principles. Testing of these hypothesis can also be in statistical form.

    2. INDUCTIVE METHOD :
    The inductive method uses econometric package in experimentations.
    It derives Economic generalizations on the basis of experience and observations. It involves data collection with reference to a certain economic phenomenon. These data obtained can help in the establishment of economic principles and theories.

    The three main ways of deriving these economic principles include:
    a) Experimentation
    b) Observation
    c) Econometric / Statistical Method.

    Reply
  213. Avatar Omeke Wisdom Ugochukwu says:
    4 years ago

    Name : Omeke Wisdom Ugochukwu
    Dept. : Nursing Sciences
    Reg No: 22283798FA
    Email. : wisdomomeke3@gmail.com

    Question : Discussion on the methods of Economic analysis

    Answer:
    Economic generalisations describe the laws or statements of tendencies in various branches of economics such as production, consumption, exchange and distribution of income.
    The generalisations of economics like the laws of other sciences, state cause and effect relationship between variable and describe these economic hypotheses which have been found consistent with fact or, in other words, have been found to be true by empirical evidence. But a distinction maybe drawn between a generalisation and a theory.
    The methods of economics analysis which have been broadly categorized are;
    Deductive method
    Inductive method

    Deductive method:
    The deductive method which is also known as the abstract, analytical or priori method represents an abstract approach to the derivation of economic generalisations and theories.
    The principle steps in the process of deriving economic theory through deductive methods are:
    A. A clear idea of the problem.
    B. Defining precisely the technical terms and making appropriate assumptions often called postulates or premises.
    C. Deducing hypotheses, that is deriving conclusions from the premises through the process of logical reasoning.
    D. Testing of the hypotheses deduced. This is the final stage in the deductive method.

    Inductive method:
    This is also called “empirical method”. This method derives economic generalisations on the basis of experience and observations.
    There are three ways which can be used for deriving economic principles and theories, which are
    – Experimentation
    – Observations
    – Statistical or econometric method
    Some of the recent researches in the field of macroeconomics such as the nature of consumption function describing the relation between income and consumption, the principle of acceleration describing the factors which determine investment in the economy have been obtained mainly through the use of inductive method. Moreover there is need to emphasize again that the use of induction or empirical method is not of much value if it is not supported by the economic hypothesis or theory developed by deductive logic. The inductive method can at best be used to empirically test the theory or hypothesis as to whether it is consistent with or refuted by facts. The inductive method has another limitation in that there is a great risk of conclusions being drawn from insufficient data. To obtain generalisations through inductive method one should take note that sufficient number of observations or data has been taken into account
    Finally, the controversy which existed among the early economists as to whether deductive or inductive approach is more appropriate in developing economic theories and principles has been resolved. The modern viewpoint in this regard is that both are needed for the proper development of scientific economic theories. Indeed the two are complementary rather than competitive.

    Reply
  214. Avatar Ogbu Emmanuel Azubuike says:
    4 years ago

    Name: Ogbu Emmanuel Azubuike
    Department: Sociology and Anthropology
    Reg number: 21649423GF

    Economists have basic ways through which they analyse Economics, any economic analysis involves the formulation of laws and generalisation through two methods; Deductive and inductive method.

    1. Deductive method : this is refered to as the prior reasoning. We start from practical assumptions and arrive at conclusions (hypothesis) using logical analysis or our own analytical abilities. This method has different stages which are the
    * Observation of a task
    * Making the hypothesis and;
    *Testing the hypothesis using more observations.
    When the hypothesis of this stage is verified it becomes an economic principle.

    2. Inductive method: this method flows from facts to theory . First, information and facts are collected and then we move towards providing evidence using Economic theory and facts. This method formulates principles using sub method, observations, experimentation, statistical method.
    Data is collected about a particular economic theory and then conclusions are drawn.
    The stages are:
    *Observation
    * Formulation of hypothesis
    * Generalising principles
    * Verifying against actual facts.

    Reply
  215. Avatar Ezemma Honest Chinaza says:
    4 years ago

    Name: Ezemma Honest Chinaza
    Department: combined social science (Economics/psychology)
    Reg no:21536287CA

    Methods of Economic Analysis

    Like in any other science, Economics adopts two important methods in it’s investigations and formation of laws and principles. The two methods are:
    1. Deductive method
    2.inductive methods

    1. Deductive method of Economic Analysis
    This is alsoMethods of Economics Analysis called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue

    Making the hypothesis

    Testing the hypothesis using more observations, etc.

    2. Inductive method of Economics Analysis
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws. Inductive Method of Economic Analysis
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation

    Formulation of a hypothesis

    Generalizing principles

    Verifying against actual facts

    Reply
  216. Avatar Nnamdi Peace Munachukwumu says:
    4 years ago

    Nnamdi Peace Munachukwumu
    Nursing Sciences
    20690492HA

    2 Methods of Economic Analysis.
    1. Deductive Method: This is also called Abstract Analytical and A Prior Method. It’s Derives Economic Generalization on the Basis of an “Abstract Approach”.
    Principle Step in the Process of Deriving Economic Generalization through Deductive Logic are:
    -Perception of the Problem to be enquired Into.
    -Deducing Hypothesis , (Deriving Conclusions through the process of Logical Reasoning).
    -Testing of Hypothesis deduced.

    2. Inductive Method: This Method is also called “Empirical Method”. It derives Economic Generalization on the Basis of ”Experiment and Observation “.
    This Method also involves the Collection of Detailed Data with regards to a certain Economic Phenomenon and Efforts are made to arrive to a Certain Generalization which will be Gotten from the Observations Collected.
    ~However, The number of Observation has to be large before it can yield valid Economic Generalization.
    Principle steps in the Process if Deriving Economic Generalization through Inductive Logic:
    -Experimentation
    -Observation
    -Statistical Econometric Method.

    Reply
  217. Avatar Chukwudi Favour chinecherem says:
    4 years ago

    CHUKWUDI FAVOUR CHINECHEREM
    DEPARTMENT: PHILOSOPHY
    REG NO: 2020/243126
    ECO 101
    METHODS OF ECONOMICS ANALYSIS
    Deductive method
    Inductive method
    DEDUCTIVE METHOD
    This method can also be called a priori reasoning,in this method we starts from the fact then arrive to the conclusion, building a hypothesis or theory using logical or analytical approach or abilities. This method begins from the general to the specific ,it observes issues or task in this process making of hypothesis then testing the hypothesis using more observations. Stages in this include,
    * Observation of a task/issues
    * Making the hypothesis
    * Testing the hypothesis

    INDUCTIVE METHOD
    This method deals with data collection about a particular economic theory and then conclusions are drawn .we collect information and facts and then move toward providing evidence using economic theory and facts, this method formulated principle’s using both experiment and observations. Stages in this method include;
    * Observation
    * formulation of hypothesis
    * Logical reduction
    * Test
    * Predict agreement

    Reply
  218. Avatar Okafor chinenye Juliet says:
    4 years ago

    Name.. okafor chinenye Juliet
    Department.. philosophy.
    Reg no..20639794AF
    E-mail.okaforjulet42@gmail.com.
    METHOD OF ECONOMIC ANALYSIS.
    (1). DEDUCTIVE METHOD.
    This is a method of verifying existing knowledge which look deep into complex problem on the basis of generally accepted laws and basic assumption,it is also called abstract method which starts from a broad sense and narrows down to small point.
    (2) INDUCTIVE METHOD
    This is based on observation of fact as problem, then establish reasoning and solutions in the method, it is a method of discovering new knowledge, it is also called empirical method.inductive method uses econometric packages such as e-views ,stats etc in making generalization.

    Reply
  219. Avatar ANANI VICTORIA UCHECHUKWU says:
    4 years ago

    NAME: ANANI VICTORIA UCHECHUKWU
    REG NO. : 21427537IF
    EMAIL: Victoriaanani307@gmail.com

    Method of analysis involves the formulation of laws and generalization through two methods which are Deductive reasoning and Inductive reasoning
    1) DEDUCTIVE REASONING : this starts from assumptions and then arrive at conclusions using simple logical analysis. It consist of four steps
    a) perception of the problem
    b) Definition of technical terms and making of
    Assumptions: we define problem and explain
    the technical steps then make assumptions
    which are also called POSTULATES.
    c) Deducing Hypothesis: an hypothesis is formed
    based on the observation and assumptions
    d) Testing or Verification of hypothesis: more
    Observations and experiments are performed
    Until the results prove the hypothesis, then it
    Is verified and becomes a general economic
    Principle or a law.
    If the observation at the beginning is wrong or faculty, it would give wrong conclusions.

    2) INDUCTIVE REASONING: this starts from the collection of information and facts(data) which has already been established and then move to provide evidence. It uses basic scientific methods, Statistical methods and Experiments to interpret the data and arrive at better logical conclusions. Based on the conclusions, you can now put ADVICE. It is more reliable because the data is a general fact.
    If the data is faulty, or a mistake is made during the experiment, the conclusion would be faulty.

    Reply
  220. Avatar Isife Sopuruchukwu Esther says:
    4 years ago

    Name:Isife Sopuruchukwu Esther
    Reg no:21273370JA
    Department: Philosophy
    Email address: isifesopuru@gmail.com
    There are two most important methods of analysis used by economists.They include:
    1.Deductive method
    2.Inductive method

    1.Deductive method:This is also called abstract,analytical priority method and represents an abstract approach to the derivation of economic generalizations and theories.A law of generalizations describe relationship between variables ,it does not provide any explanation of the described relation.
    The principal steps in the process of deriving economic generalizations through deductive logic are:
    *Perception of the problem to be enquired
    *Defining precisely the technical terms and making assumptions
    *Deducing hypothesis
    *Testing of hypothesis deduced
    Merits of deductive method
    *Useful mathematical techniques can be employed to derive laws and theories of economics
    *Deductive methods does not require detailed collection of data unlike inductive methods
    *It is less time consuming and less expensive
    *Shortcomings of deductive analysis may not be overlooked
    Demerits of deductive analysis
    *It may not have any operational significance based on highly unrealistic assumptions
    2.Inductive method:Inductive methods is also called empiral method.In this method detailed data are required and collected with a regard of a certain economic phenomenon which is made to arrive at certain generalizations which follow from the observation collected
    The three ways used are:
    *Experimentation
    *Observation
    *Statistical or econometric method
    Merits of inductive analysis
    *It is highly practical and realistic
    *They are not universal but valid under various efforts
    *It’s helpful in varying conclusions
    Demerits of inductive analysis
    *It is not of much value if it’s not supported by the economic hypothesis or theory developed for deductive logic.
    *There is a great risk of conclusion being drawn from insufficient data
    *One must make sure they take care of sufficient number of observation or data been taken into account.
    *Collection of data is not an easy task
    A researcher using inductive method must know how to process and interpret data
    *Compared to deductive method ,inductive method is time consuming and expensive.
    Conclusions:Distinguishing the two methods if predictions are found to be real with facts ,the theory but if the predictions are found inconsistent with facts ,it is rejected.

    Reply
  221. Avatar Onyebueke Peace Oluchi says:
    4 years ago

    Name: Onyebueke Peace Oluchi
    Reg no: 2020/242616
    Email: peaceoluchi22nov@gmail.com
    There are two basic methods of analysis
    1. Deductive method: This is the first method of economic analysis and it’s method represent an abstract approach to the derivation of economic generalization. There are four steps of deriving this generalization.
    _Perceiving the problem: The analyst must know the root of the problem to be enquired into.
    _Making of assumptions: After perceiving the problem the analyst will go into the next stage by making some observation about the problem which can be behavioural or technological pertaining on the technological state of the factor.
    _Drawimg hypothesis from assumptions taken: This process may be carried out verbally or may be conducted using symbolic logic.
    _Testing the hypothesis: For the hypothesis to be verified one will need to back those thesis with proofs.
    2. Inductive method: This derives economic generalization on the basis of experience and observation. This method of observation should not be verified on the basis of few but large observations.

    Reply
  222. Avatar Sunday Morewell Chizuru says:
    4 years ago

    Sunday Morewell Chizuru
    2020242632
    ginikachim232@gmail.com
    There are two basic methods of economics analysis
    1. DEDUCTIVE METHOD
    2. INDUCTIVE METHOD
    DEDUCTIVE METHOD
    Deductive method is known as the analytical abstract a priori method. Here we start with certain formal data and assumptions. Then by logical reasoning we arrive at certain conclusions. We start with undisputed fundamental facts and after adding some assumptions we build up a theory. In Deductive method of Economic Analysis we proceed from the general to the particular. This is also known as an hypothetical method for some of the assumptions may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions. Deductive reasoning provides us with hypotheses or generalizations. If the hypotheses are tested and verified with relevance to facts, we have valid economic laws.
    INDUCTIVE METHOD
    In this method, economists proceed from a practical angle to problems of science to reduce the gulf between theory and practice. Induction is done by two forms, viz. experimentation and statistical form. Facts are collected first, arranged and conclusions are drawn. Then these general conclusions are further verified with reference to actual facts.The inductive method is generally associated with the statistical form of inductions. The statistical approach has a larger field in economic investigations than the method of experimentation. Further, the method of statistical induction is indispensable for the formulation of economic policy.

    Reply
  223. Avatar UKEJE FAVOUR CHINEMEREM says:
    4 years ago

    Economic analysis in most cases involves the formulation of laws and this can be achieved by these methods – Deductive and Inductive method.
    DEDUCTIVE REASONING also known as priori reasoning, involves the observation of issues, making and testing hypothesis using more observation and if generally accepted becomes an Economic law. This method is simple as only simple deduction is needed and boosts economic reasoning. Sometimes wrong hypothesis made may result to wrong conclusion.
    In INDUCTIVE REASONING, facts, information and theories are gathered and tested on through thorough observation and experiment and obtained result may or may not be verified. This method is more reliable since it is based on facts and statistical methods are used in this approach. It is time consuming and expensive and can be affected by limited data sources.

    NAME: UKEJE FAVOUR CHINEMEREM
    REG.NO:2019/245555
    DEPARTMENT OF PURE AND INDUSTRIAL CHEMISTRY.
    EMAIL: ukejefavour22@gmail.com

    Reply
  224. Avatar Edet Hezekiah Emmanuel says:
    4 years ago

    There are basically four(4) methods of economic analysis.

    INDUCTION METHOD:
    This involves the use of particular fact or example to form a general rule and principles. Here, the economist starts with observations and them analysis it data before drawing conclusions from them.

    DEDUCTION METHOD:
    It is the use of knowledge that are generally true in order to understand particular situations or problems. Under this method the economist base their research on an existing theory. Here, the economist start by setting accepted principles( I.e a theory that is generally know and accepted) and draw interference from them.
    Example:
    An increase in the price of rice can be used to estimate inflation rate.

    POSITIVE STATEMENTS:
    They are statements about “what is”. In other words, they are factual statements. This tries to point out the good or bad decisions in the society.
    Example:
    Tax increase or increase in school fees will reduce household disposable income.

    NORMENTIVE STATEMENTS: They are statements that depends on value judgement (ie issues of personal opinion which may or may not be fact).
    Example:
    Tax reduction will increase household standard of living.

    Reply
  225. Avatar Osuchukwu Vivian Chiamaka says:
    4 years ago

    NAME: OSUCHUKWU VIVIAN CHIAMAKA
    REG NO: 21305622EF
    DEPT: ECONOMICS
    EMAIL: vivianosuchukwu@gmail.com

    There are two major methods used by economists in analysing Economic situations, they include:

    1. The Deductive Method of Economic Analysis
    Deductive method is known as the analytical, abstract or priori method. It starts with certain formal data and assumptions. Then by logical reasoning certain conclusions are made. It is with these undisputed fundamental facts and after adding some assumptions that theories are arrived at. For instance, it is assumed that businessmen aim at achieving maximum profit. It follows from this that businessmen buy the materials at the cheapest market and sell it in the most costly market.

    In Deductive method of Economic Analysis we proceed from the general to the particular. This is also known as a hypothetical method because some of the assumptions may not correspond with actual facts, but very near actual facts are to be used as a premise for starting, reasoning and drawing conclusions.

    A complete form of deductive method consists of three stages,

    i. Observation ot perception of the problem;
    ii. Making assumptions from logical reasoning
    iii. Formulation of hypothesis, and
    iv. Testing the hypothesis
    Deductive reasoning provides us with hypotheses or generalizations. If the hypotheses are tested and verified with relevance to facts, they become valid economic laws.

    Advantages of Deductive Method of Economic Analysis

    1. Deductive method is exceedingly simple.

    2. Deductive method obviates the necessity of experimentation. Economics being a social science, experimentation may not be available as in the case of physics or chemistry. So, the next best alternative to experiment is deductive reasoning.

    3. The deductive method results in accuracy and exactness in generalization, because of logical reasoning. This method gives a high standard of precision in abstract economic reasoning.

    Disadvantages of Deductive Method of Economic Analysis
    Deductive method has its drawbacks also:
    1. Deduction is based mainly on assumptions which are perfectly valid but If assumptions are wrong, generalizations made on the basis of wrong assumptions will be imperfect and invalid.

    2. In deduction there is too much of abstraction and economists by means of their intellectual exercises produce only “intellectual toys” which have little connection with reality.

    3. Deductive generalizations started on wrong premises will be dangerous when such generalization claim universal validity. For instance, if such faulty generalizations are made use of in framing government policies, the results would be nothing but disastrous.

    2. The Inductive Method of Economic Analysis
    In this method, economists proceed from a practical angle to problems of science to reduce the gap between theory and practice. Induction is done by two forms, viz. experimentation and statistical form. Facts are collected first, then arranged and conclusions are drawn. Then these general conclusions are further verified with reference to actual facts.

    The inductive method is generally associated with the statistical form of inductions. The statistical approach has a larger field in economic investigations than the method of experimentation. Further, the method of statistical induction is indispensable for the formulation of economic policy. Practically, Malthus presented his famous theory of population only after studying the facts of population in various countries; He then used statistics to support his theory. .

    Advantages of Inductive Method of Economic Analysis
    Inductive method has the following merits:

    1. It is highly practical and realistic as it describes things as they are.

    2. It is helpful in verifying the conclusions of the deductive method.

    Disadvantages of Inductive Method of Economic Analysis
    Inductive method has the following limitations:

    1. When the investigators lack a balanced judgement there is the risk of drawing hurried conclusions based on inadequate information or data.

    2. Collection of data in the inductive process is highly complex and time consuming.

    3. Only induction alone will not deliver unless it is complemented by means of deductive reasoning. Without deduction, the inductive method would result in producing only a mass of unrelated and unconnected facts.

    In conclusion, the two methods have to be made use of or combined to achieve the required objective. The two methods, deductive and inductive, are not competitive, but complementary in helping the investigator arrive at an accurate conclusion.

    Reply
  226. Avatar NNAJI CHINAZA EDITH says:
    4 years ago

    NAME: NNAJI CHINAZA EDITH
    REG.NUMBER:21407079GA
    DEPARTMENT: ECONOMICS
    EMAIL: chinazannaji320@gmail.com
    1)Deductive Method:This is called prior reasoning , we start from unchallenged elementary or rudimentary assumptions of fact and then arrive at a conclusion ( to build a hypothesis or theories) using logical analysis or our analytical abilities. In this kind of reasoning will go from general to specific.
    The stages in in Deductive Method are
    Observation of task or issue
    Making the hypothesis
    Testing the hypothesis using more observation
    this reasoning gives us a hypothesis and if this hypothesis get verified we get general economics principle or law.
    2) Inductive Method:this type of reasoning flows from facts to theory
    First we collect data and facts and then we move towards providing evidence using economic theories and fact, this method formulate principles using the sub method, observations ,experimentation ,and statistical method
    Data is collected about a particular economic theory then are conclusion drawn.
    The stages in this method are
    Observations
    Formulation of hypothesis
    Generalizing principles
    Verfying against actual facts
    Note: inductive is more realistic and reliable
    DEDUCTIVE INDUCTIVE
    Information Theory
    Pattern Hypothesis
    Tentative hypothesis Observation
    Theory Confirmation

    Reply
  227. Avatar Lilian chidiogo says:
    4 years ago

    Mbah chidiogo Lilian.
    Jamb reg. Number
    20163599JA
    Department.Nursing science.
    METHOD OF ECONOMIC ANALYSIS.
    Just like every other science Economic adopts it own two important method in investigation and formulation of law and principle.
    The two methods are
    Deductive method
    Inductive method
    Deductive method- In this method we start with certain formal data and assumption.Then by logical reasoning we arrive at certain conclusion.it is also known as the ANALYSTICAL ABSTRACT A PRIOY METHOD.we start with disruptey fundamental facts and after adding some assumpy we build up a theory.In deductive method of economic Analysis we proceed from general to the particular.
    This also known as a HYPOTHETICAL METHOD.
    In economics we start with a very simple premises and work up gradually or more and more complex hypothesis.
    Deductive method consist of three stage.
    Observation
    Deductive reasoning
    Instance and testi by means of further observation.
    INDUCTIVE METHOD OF ECONOMIC ANALYSIS
    This is another form or method of economic Analysis.
    This inductive method is generally associated with the statistical form of induction.
    In this method, economic proceed from practical angle to problem of science to reduce the gulf between theory and practice.
    The statistical approach has a larger field in economics investigation than the method experiement .
    Induction is done by two forms
    Experiementation form
    Statistical form.
    Facto are collected first arranged and conclusion drawn.
    Then these general conclusion are further verified with reference to actual facts
    Stages of inductive reasoning.
    Observation
    Formulation of hypothesis
    Generalization principle
    Verifying against actual facts

    Reply
  228. Avatar UGWU JOY UGOCHUKWU says:
    4 years ago

    NAME: UGWU JOY UGOCHUKWU
    REG NO: 20686346JA
    DEPARTMENT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT
    LEVEL: 100

    What are the basic methods of analysis used by economist? Briefly and convincingly discuss each of them.

    ANSWER

    The basics methods of analysis used by Economists are:

    1) DEDUCTIVE METHOD
    2) INDUCTIVE METHOD

    DEDUCTIVE METHOD
    The Deductive method is also called “analytical method or prior method”. The Deductive method consists in deriving conclusions from general truths, takes few general principles and applies them to draw conclusion.

    STEPS IN THE PROCESS OF DERIVING ECONOMIC GENERALIZATIONS THROUGH DEDUCTIVE LOGIC ARE:

    a) PERCEPTION OF THE PROBLEM
    The problem which an investigator selects for enquiry must be stated clearly. Maybe very wide like poverty, unemployment, inflation etc or narrow relating to an industry. The narrow the problem the better it would be to conduct the enquiry.

    b) FORMULATING OF ASSUMPTIONS
    The next step in deductive is the framing of assumptions which are basis of hypothesis. To be fruitful for enquiry, the assumption must be general. In any economic enquiry, more than one set of assumptions should be made in terms of which a Hypothesis may be formulated.

    c) FORMULATING HYPOTHESIS
    The next y is to formulate a hypothesis on the basis of logical reasoning where by conclusions are drawn from propositions.

    d) TESTING AND VERIFYING THE HYPOTHESIS
    The final step in the Deductive method is to test and verify the hypothesis. For this purpose, economist now use statistical and econometric methods. A hypothesis is true or not can be verified by observation and experiment.

    MERITS OF DEDUCTIVE METHOD
    1) REAL: This method is near to reality. It is less time consuming and less expensive.

    2) EXACT: The use of mathematical techniques in deducing theories of economics brings exactness and clarity in economic analysis.

    3) UNIVERSAL: The Deductive method helps in drawing inferences which are universal validity because they are based on general principles such as law of diminishing returns.

    DEMERITS OF DEDUCTIVE METHOD
    i) Deductive method is based mainly on assumptions which are perfectly valid. If assumptions are wrong, generalizations made on the basis of wrong assumptions will be imperfect and invalid.

    ii) In deductive there is too much of abstraction and economist by means of their intellectual exercises produce only “intellectual toys” having little connection with reality.

    2) INDUCTIVE METHOD
    Inductive method which is also called “empirical method” derives economic generalizations on the basis of experience and observation.

    STEPS IN THE PROCESS OF DERIVING ECONOMIC GENERALIZATIONS THROUGH INDUCTIVE LOGIC ARE:

    a) THE PROBLEM
    In order to arrive at a generalisation concerning an Economic phenomenon, the problem should be properly selected and clearly stated.

    b) DATA
    The second step is the collection, enumeration, classification and analysis of data by using appropriate statistical techniques.

    c) OBSERVATIONS
    Data are used to make observations about facts concerning the problem.

    d) GENERALISATION
    On the basis of observation, generalisation is logically derived which establishes a general truth from particular facts.
    Thus, inductive is the process in which we arrive at a generalisation on the basis of particular observed facts.

    MERITS OF INDUCTIVE METHOD

    i) It is highly practical and realistic as it descry things as they are.

    ii) It is helpful in verifying the conclusions of the Deductive method.

    iii) Economic laws under this method are not universal but valid only certain conditions.

    DEMERITS OF INDUCTIVE METHOD
    i) Costly method: The Inductive y is not only time-consuming but also costly. It involves detailed and painstaking process of collection, classification, analyses and interpretation of data.

    ii) Difficult to prove Hypothesis: Again, the use of statistics in inductive cannot prove Hypothesis. It can only show that the hypothesis is not inconsistent with the known facts.

    CONCLUSION
    The above analysis reveals that independently neither deductive not Inductive method is helpful in scientific enquiry; in reality, both deductive and inductive are related to each other because of some facts.

    Reply
  229. Avatar Ayogu Timothy peace says:
    4 years ago

    Name: Ayogu Timothy peace. Reg no:2020/241317. Department:philosophy. 1, Deductive method is also called a priori reasoning, we begin from unchallenged elementary or rudimentary assumption, facts and then arrive at conclusion (build a hypothesis or theory) using logical analysis or our own analytical skills *observation of task issue. *Making the hypothesis. *Testing the hypothesis using more observation etc.. 2, Inductive method flow from fact theory first,we collect facts and informations then move towards providing evidence using economic theory facts. *Observation. *Formulation of hypothesis. *Generalizing principles. *Verifying against actual facts.

    Reply
  230. Avatar ABONYI BLESSING CHINASA says:
    4 years ago

    Name: ABONYI BLESSING CHINASA
    Reg no:20688916GF
    Department: philosophy
    Assignment on Eco 101
    What are the basic methods of analysis used by economists briefly and convincingly discuss each of them.we have two methods of Economic analysis they are no1 deductive method and no2 is inductive method.

    Deductive method: we shall first explain the deductive method of deriving economic generalisations.THe deductive method is also called abstract analytical and a priori method and represents an abstract approach to the derivation of Economic generalisations and theories.the principal steps in the process of deriving economic generalisations through deductive logic are
    (a) perception of the problem to be enquired into
    (b). Defining precisely the technical terms and making appropriate assumptions often called postulates or premises
    Advertisement:(c) Deducing hypotheses, that is, deriving conclusions from the premises through the process of logical reasoning and (d) testing of hypothesis deduced
    (a) perception of the problem:in any scientific enquiry the analyst or theorist must have a clear idea of the problem to be enquired into (b) definition of technical terms and making of Assumptions:as mentioned above assumptions may be Behavioural pertaining to the behaviour of the economic variable or they may be technological and the factor endowments the crucial assumptions are made in the basis of observation or introspection.(c) Deducing hypothesis through logical deduction: the next step in deriving generalisations through deductive, logic is Deducing hypotheses from the assumptions or premises taken

    (2) inductive method: the inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations.in this method detailed data are collected with regards to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.but ,it is worth mentioning that the number of observations has to be large if it can yield a valid economic generalisation.one should not generalise on the basis of a very few observations, there are three ways which can be used for deriving economic principles and theories they are
    (a) Experimentation
    (b) observations.

    Reply
  231. Avatar Obetta Cynthia Chidimma says:
    4 years ago

    NAME: OBETTA CYNTHIA CHIDIMMA
    REG NO: 20689914BF
    EMAIL: obettacynthia@gmail.com

    THE METHODS OF ECONOMIC ANALYSIS
    They are the Deductive and Inductive methods
    DEDUCTIVE METHOD: Is also known as the Analytical, Abstract or Priori method. The method consist in driving conclusions from general truths, takes few general principles and applies conclusions.
    For instance if we accepts the general proposition that Manis entirely motivated by self_interest . In applying the deductive method of economic analysis we proceed from general to particular.
    In dudective method of economic analysis we proceed from general to the particular. This is also known as Hypothetical method, for some of the assumptions may not correspond to be used as premises to starting, reasoning and drawing conclusions.
    STEPS OF DEDUCTIVE METHOD
    I, Perception of the problem to be inquired into_In the process of driving economic generalizations, the analysis must have a clear and precise idea of the problem to be inquired into.
    ii, Deducing hypothesis from the assumptions
    III, Definition of terms
    2 INDUCTIVE METHOD OF ECONOMIC ANALYSIS : It is also called Empirical method was adopted by the “Historical school of economist; it involves the process of reasoning from particular facts to general principles.
    This method derives economic generalizations on the basis of
    I, Experimentations
    ii, Observations and Statistical methods.
    STEPS OF INDUCTIVE METHOD
    I It based on facts as such the method is realistic
    ii, Inorder to test economic principles, method makes statistical techniques, the inductive method is therefore reliable.
    III, It is dynamic
    iv, Inductive method also helps in future investigation
    Deductive method and Inductive methods are both needed for scientific thought, as the right and left foot are both needed for walking.

    Reply
  232. Avatar Igwe Ifeanyi Uchenna, 20017698JA says:
    4 years ago

    Economics as a social science has its way of conducting an investigation before the formation of law. They’re the deductive and inductive methods.
    1. The deductive method.
    The deductive method mostly lies on assumption. It is based on gathered facts and observations from which a conclusion is then derived through logical reasoning. For example, it is noted that prices would increase when demand is high which means that a sudden large inflow of money will increase the amount of consumers in the market which increases demand thereby causing inflation. That is observation and deduction. Although not all deductions might be true as they are considered hypothetical until they’re effectively proven. The deductive method of analysis consists of 3 stages.
    a) Observation: At this stage, studies are carried out and market trends and changes are being observed in a given period of time. It is from these observations and research that certain deductions are made.
    b) Deductive reasoning: After an observation is made, a deduction is made through logical reasoning.
    c) Testing of hypothesis’ model: Not all deductions are true, so they have to be tested both theoretically and practically before they are seen as a fact.
    Advantages of deductive reasoning
    1. It an easier and a less complicated form of analysis.
    2. It is an analysis dispensable of experiments as most of its processes are done intellectually.
    3. Due to the use of logic, it gives accurate and reliable results.
    Disadvantages of deductive reasoning
    1. Deductions made might not be realistic since practical engagements are less.
    2. They’re based on assumptions and observations which if wrong, makes the deduction invalid.
    3. Deductions might not be generalized since environmental differences might be a barrier for its universal accuracy.
    2. Inductive Method
    This method involves practical methods of experimentation to approach problems. Facts are gathered through surveys and stats which are then arranged to come up with conclusions that are further verified. For example, after conducting a research on employees from different locations and discover that 85% spend most of their incomes on shoes, it can be concluded that shoes are the most bought thing by salary earners. The Inductive method for conclusion is not based on any assumptions but from statiscal evidences which facts are being drawn from to be verified further.
    Advantages of the inductive method
    1. It lies on established facts, making conclusion’s accuracy not dependable on source.
    2. It is future oriented. This means that information gotten can be used for future predictions.
    3. It seems to be more realistic when compared to the deductive method.
    Disadvantages of the inductive method
    1. Due to this method being largely based on statiscal data, informations can be miss-interpreted and mis-used.
    2. Approach of experiments might be different with different investigators, resulting to varying results.
    3. It involves time and money.

    Reply
  233. Avatar Jasper, Victory Sunday says:
    4 years ago

    NAME: Jasper, Victory Sunday
    Reg.No: 20073866HA
    DEPARTMENT: Nursing Sciences

    A DISCUSSION ON THE BASIC METHODS OF ANALYSIS USED BY ECONOMISTS

    Economic generalization describe laws that govern the relationship between human behaviour and their location of scarce resources between alternative ends.
    Like other science laws, generalization of economic state cause and effect relationship between variables and describe economic hypothesis which have been proven true by a empirical evidence. Before approving a state a generalization true, steps of processes of logical reasonings and explanations on the stated variables will be carried out. The 2 methods I’ll discuss is :
    (a) THE DEDUCTIVE METHOD: This represents an abstract method in approaching generalization theories. the various steps in reaching a conclusion include:
    (i) Perception of a problem: The economist must understand the problem he is peering into as well as the variables he will consider and people he will interrogate.
    (ii) Defining Technical Terms: The economist must make use of clear terms used in the analysis as well as keeping tabs and records on the assumptions made.
    (iii) Deducing Hypothesis: A hypothesis describes relationship between factors affecting a phenomenon; it establishes the cause and effect relationship between the variables having a bearing on the phenomenon. Through logical process, a hypothesis is drawn from the assumptions made.
    (iv) Verification of the hypothesis: Unlike science, economists cannot make controlled experiments and must reply on observations and statistics, so testing and re-testing a given hypothesis must be carried out before a generalization law is made.

    ADVANTAGES OF THE DEDUCTIVE METHOD
    1. Useful math­ematical techniques can be employed to derive laws and theories of economics.
    2. The use of complex mathematical methods in the deductive approach enables the economists to introduce accuracy in their economic principles and theories.

    DISADVANTAGES OF THE DEDUCTIVE METHOD
    1. It requires the high level of competence and logic.
    2 It depends too much on assumptions.

    (b) THE INDUCTIVE METHOD: This is also called the empirical method which is arrived at from observations and experiences. Here, detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.
    the steps in arriving at a generalization from this method is much similar to that of the deductive method but at the third step;
    data about variables relating to a problem and doing some preliminary thinking about the possible functional relationships between the relevant variables is done.
    The next important step in the construction of economic theories in this method is the processing of data collected and finding out what relations between the variables actually hold good. From this, a theory is developed which can be further refined and tested through statistical methods.

    Once the theory has been developed one can make predictions on its basis, as is done in the deductive approach. If predictions of theory are in agreement with the facts and actual behaviour of the economy, then a new reliable theory has been developed.

    Reply
  234. Avatar MBA IBE says:
    4 years ago

    Name – MBA IBE
    Reg.no – 20698029AF
    Department – philosophy
    100 level
    Email – mbaibe9@gmail.com

    DEDUCTIVE METHOD
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation Of A Task /Issue
    1. Making the hypothesis
    2. Testing the hypothesis using more observations, etc.
    3. This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    1. It is a simple method, doesn’t involve the use of any complex software analysis, etc.
    2. only simple deductive logic is required.
    3. This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    Disadvantages of Deductive Method
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    INDUCTIVE METHOD
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    1. Observation
    2. Formulation of a hypothesis
    3. Generalizing principles
    4. Verifying against actual facts.

    Advantages Of Inductive Method
    1. Since it is based on facts it is more realistic and reliable.
    2. Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    3. Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages Of Inductive Method
    1. If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    2. It is a time-consuming process and thus expensive as well.
    3. The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  235. Avatar Onah Judith Ugochi says:
    4 years ago

    Name: ONAH JUDITH UGOCHI
    Dept: ECONOMICS
    matric number: 2020/242646
    Level: 100.

    The methods used in Economic analysis are;
    *) Inductive method and,
    *) Deductive method.

    INDUCTIVE METHOD: This is also called empirical method. This derives Economic generalizations on the basis of experience and observations. First, we collect information and facts and then move towards providing evidence using Economic theory and facts.

    The stages includes;
    a) Observation
    b) Formulations of a hypothesis
    C) Generalizing principles.
    d) verifying against actual facts.

    Advantages of inductive methods.
    i) It is realistic because it is based in facts and explains them as they actually are.

    ii) It helps in future enquiries. For once a generalisation is established, it becomes the starting point of future enquiries.

    Disadvantages of inductive methods.
    i) Lacks concreteness as sources, definitions, and methods used in statistical analysis differ from investigator to investigator.

    ii) The inductive method is not only time consuming but also costly.

    2) DEDUCTIVE METHOD: This is also called priori, abstract and analytical reasoning. This method derives Economic generalizations on the basis of assumptions or unchallenged elementary and then arrive at conclusions using logical analysis or our own abilities.

    The stages includes;
    a) Observations
    b) Making the hypothesis
    c) Testing the hypothesis using more observations

    Advantages of deductive method.
    i) deductive method is indispensable in sciences like Economics where experimentation is not possible.

    ii) Deductive method is less time consuming and less expensive when compared to inductive method.

    Disadvantages of Deductive method.
    i) A good deal of care and objectivity is needed to avoid bad logic or faulty Economic reasoning.

    ii) It requires the use of a high level competence in logic and theoretical abstraction.

    Reply
  236. Avatar Emedoro Deborah chinonso (21346629CA) NURSING SCIENCE says:
    4 years ago

    NURSING SCIENCE

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  237. Avatar Name: Nwachukwu Blessing Oluwatosin. Reg.no:20745030DA. Department: Nursing sciences says:
    4 years ago

    Basic Methods of Economic Analysis:
    We have two methods of Economic Analysis they are:
    1) Deductive Method.
    2) Inductive Method.
    Deductive Method: This method is also called analytical method and it represents an Idealized way to the derivation of Economic generalization and theory.
    The four major step involved in the process of Economic Analysis through Deductive Method are:
    a) perception or Identification of the product to be enquired about.
    b) defining precisely the technical terms and making appropriate assumptions usually called ‘postulate’ or ‘premise’.
    c) Deducing hypothesis which means deriving conclusion from postulates through logical reasoning.
    d) Testing of the deduced hypothesis.
    Merits of Deductive Method
    – It is an easy method and doesn’t involve the use of any complex software analysis, only simple Deductive logic is required.
    -this method focuses on economic reasoning which is of great importance.
    Demerits of Deductive Method.
    In this Method of reasoning it begins from assumptions and if the assumption is flawed the whole process becomes faulty and would give a wrong conclusion. Thus, the logical fallacy is a disadvantage in this method.
    2) Inductive Method: This method flows from facts and then move towards providing evidence using economic theory. Through this method, principles are formulated using these stages:
    – Observation
    – Formulation of a hypothesis
    – Generalizing principles
    – Verifying against actual facts.
    Merits of Inductive Method:
    – since it is based on facts it is more realistic and reliable.
    – Using statistical method and experiments makes the process more scientific thus more acceptable universally.
    Demerits of Inductive Method
    – If the data used is faulty, it will then lead to a faulty conclusion, therefore making the hypothesis less reliable.
    – It is a time consuming process and also expensive.

    Reply
  238. Avatar Ugwuanyi Nnaemeka Jude says:
    4 years ago

    NAME: Ugwuanyi Nnaemeka Jude
    REG: 20683448EF
    DEPARTMENT: PHILOSOPHY
    Email: nnajude6263@gmail.com
    Economic analysis is divided into two, namely:

    (1) Inductive reasoning: or inductive logic, is a type of reasoning that involves drawing a general conclusion from a set of specific observations. Inductive reasoning is the opposite of deductive reasoning. It makes broad generalizations from specific observations. This reasoning is also known as a derivation of generalization based on experience and observations. It is also a practical approach to the problems of economic science.

    (2) Deductive reasoning:is a basic form of valid reasoning. Deductive reasoning, or deduction, starts out with a general statement or hypothesis and examines the possibilities to reach a specific, logical conclusion.
    Deductive research approach explores a known theory or phenomenon and tests if that theory is valid in given circumstances. The deductive approach follows the path of logic most closely. This method of Economic analysis starts with a theory and leads to a new hypothesis. The hypothesis is then, put to the test by confronting it with observations that either lead to a confirmation or a rejection of the hypothesis before arriving to a conclusion.

    Reply
  239. Avatar Orjiakor chisom Maureen says:
    4 years ago

    Name:orjiakor chisom Maureen
    Reg number:20687815GA
    Email: chisomorjiakor19@yahoo.com
    Department: public administration and local government

    Some of the most important economic analysis are as follow:
    Deductive method
    Inductive method

    I shall first explain the deductive method of deriving economic generalisation.the deductive method is also called abstract, analytical and priori methods and represent an abstract approach to the derivation of economic generalisation and theories.
    Example
    Bachelors are unmarried men,Bill is unmarried therefore Bill is a bachelor.

    Indeductive method: which is also called empirical method was adopted by the historical school of economists.its involve in the process of reasoning from particular facts to general principle.this method derives economics generalisations on basis of
    Experimentation
    Observation and
    Statistical method
    In this method,data is collected about a certain economic phenomenon
    Steps of indeductive method
    Observation
    Formulation hypothesis
    Verification
    Generalisation.

    Reply
  240. Avatar ONUH MIRACLE ALFRED . says:
    4 years ago

    NAME: ONUH MIRACLE ALFRED
    DEPT:PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT
    REG:20650090F

    1) DEDUCTIVE METHOD
    its a method of economic analysis we proceed from the general to the particular. This is also know as an hypothetical method for some of the assumption may no correspond to actual facts which may be used as premise for starting reasoning and drawing conclusions. The stages in deductive method are:
    1) Observation of tasks/issue
    2) Making the hypothesis
    3) Testing the hypothesis
    ADVANTAGES
    1) It focuses upon economic reasoning which is for Paramount importance.
    2) It is a simple method, doesn’t involve the use of complex software, etc. Only simple deductive logic is required.
    DISADVANTAGES
    1) It is time-consuming process and this expensive as well
    2) The collector of all data is not an easy job and varies from person to person. As to how they collect data.

    2) INDUCTIVE METHOD
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub methods observations, experimentation, statistical methods. The stages in the method are; Observation, Formulation of hypothesis, Generalising principles, Verifying against actual facts.
    ADVANTAGES
    1) It is more realistic and reliable
    2) Using statistical method and experimentation makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    DISADVANTAGES
    1)It is time consuming process and thus expensive
    2)The collection of all data is not an easy job and varies from person to person, As to how they collect data.

    Reply
  241. Avatar Ezugwu Chinaza, 2019/243351, pure and industrial chemistry says:
    4 years ago

    Economic analysis involves the formulation of laws and generalizations. Economic generalizations describe the laws or statements of tendencies in various branches of economics such as production, consumption, exchange and distribution of income.
    Economic analysis is done by two major ways; deductive and inductive methods.
    1- DEDUCTIVE METHOD: This is also called priori reasoning and in this kind of reasoning, we move from general to specific. It involves three stages;
    * Observation of a task or an issue.
    * Making hypothesis
    * Testing the hypothesis using more observations.
    – We start with unchallenged elementary assumptions/facts and then arrive at conclusions ( build a hypothesis) using our own logical analysis or analytical abilities. If the hypothesis is tested and verified, we get general economic principle or law.
    ADVANTAGES OF DEDUCTIVE METHOD
    – It is a simple method, does not involve the use of any complex software analysis, only simple deductive loo oguc is required.
    – It focuses on economic reasoning which is of paramount importance.
    DISADVANTAGES
    This disadvantage of this method is logical fallacy which may arise, since the assumptions could be logically flawed leading to wrong conclusions.

    2- INDUCTIVE METHOD: This type of reasoning flows from facts to theory. It formulates principles using the sub- methods; observation, experimentations, statistical methods. The stages involved here include;
    * Observation
    * Formulation of a hypothesis.
    * Generalizing principles.
    * Verifying against actual facts.
    – First, we collect information/ facts and then move towards providing evidence using economic theory/ facts.
    ADVANTAGES OF INDUCTIVE METHOD
    – Using statistical methods and experimentations makes the process more scientific and thus, more accepted universally rather than just depending on your own reasoning and logic.
    – Due to the dynamic state of the economic environment, relying more on scientific method always help us reach logical conclusions.
    DISADVANTAGES
    – It is time consuming and very expensive.
    – The collection of all data is not easy and vaires from person to person.
    – If the data used is insufficient or faulty, it makes the conclusions faulty and the hypothesis equally becomes less reliable.

    Reply
  242. Avatar Okanya Joachim Ndudi says:
    4 years ago

    NAME: Okanya Joachim Ndudi
    JAMB REG NUMBER:20684856DF
    FACULTY:Health Sciences
    DEPARTMENT:Nursing Science

    METHODS OF ECONOMIC ANALYSIS.
    An economic analysis is a process followed by experts to understand how key economic factors affect the functioning of an organization, industry, region or any other particular population group, with the purpose of making wiser decisions for the future.
    It has two methods, which are:

    1.Deductive Method
    2.Inductive Method

    1.Deductive Method:

    According to Aristotle, a deduction is an argument in which, certain things being laid down, something other than these necessarily comes about through them.
    The deductive profiling method relies on the application of deductive reasoning to the observable evidence. Investigators collect general information about the crime, and the profiler draws specific conclusions about the criminal’s characteristics, based on the profiler’s experience, knowledge, and critical thinking. Victimology, the crime scene, forensic evidence, and behavioral analysis are all components of the deductive process.
    In Deductive method of Economic Analysis we proceed from the general to the particular. This is also known as an hypothetical method for some of the assumptions may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions. In economics we start with very simple premises and work up gradually or more and more complex hypotheses.

    The deductive method involves several distinct steps:
    1. A problem is stated.
    2. Information is collected.
    3. A working hypothesis is formulated.
    4. The hypothesis is tested.
    5. Results of the test are examined.
    6. One or more conclusions are reached.

    Hypotheses can be tested using if/then thinking. We might start with a hypothesis such as “Hackers are mostly harmless.” If our hypothesis is correct, the data should show that the vast majority of hacking incidents cause no monetary loss or other harm to the companies or individuals whose systems are hacked. Finding one or two incidences of loss or harm would not disprove the hypothesis—but if we find large numbers of cases that are inconsistent with our hypothesis, we can consider it to be invalid. Our conclusion, then, could be the opposite of the hypothesis we started with: Hackers are not “mostly harmless.”
    Note
    Perhaps one of the most famous proponents of deductive reasoning was Sir Arthur Conan Doyle, the Scottish writer and physician who created the Sherlock Holmes character in the 1880s. Doyle summed up the deductive method rather succinctly: “It is an old maxim of mine that when you have excluded the impossible, whatever remains, however improbable, must be the truth.”

    MERITS OF DEDUCTIVE METHOD

    1. Nearer to reality : Deductive method is nearer to reality. It helps us to make deductions from the complex conditions of the world.

    2. Simple : Deductive method is very simple in nature. It avoids the collection of statistical data and information for proving economic laws.

    3. Analytical: This method is useful for analyzing complex economic phenomena. It divides a particular economic problem into several components.

    4. Universal validity : The inferences adopted and the conclusions made under this method have universal validity. The reason is that the inferences are based on certain general principles.

    5. Indispensable : This method is regarded as an indispensable method in Economics. As Gide and Rist pointed out “In a science like Political Economy experiment is practically impossible. Abstraction and analysis afford the only means of escape from those other influences which complicate the problem so much”.

    6. More reliability : In Economics it is difficult to prove certain generalizations through controlled experiments. This is due to the fact that economic phenomena are related to human behavior which varies continuously.

    7.Reveals inconsistencies : This method provides scope for adopting mathematical approach for arriving conclusions. So it reveals the inconsistencies in the economic phenomena.

    DEMERITS OF DEDUCTIVE METHOD

    1. Generalizations – full of faults : The proposers of this wrongly assumed that their abstractions always correspond with the facts. So any research scholar commits the same mistake if he tries to deduce faulty generalizations.

    2. Universal applicability – a myth : The statement that deductive method has universal applicability is not real. Because the causes and conclusions of economic problems differ from country to country and from time to time. That is why Professor Lerner criticized that this method is simply an ‘arm chair analysis’ which can’t be regarded as universal

    3. Based on wrong assumptions : Deductive method is based on certain assumptions. But the assumptions may not be real at all times. So the conclusions based on these assumptions may not be real. For instance, this method assumes that individuals behave in a rational manner. But no one can definitely say when individuals behave rationally.

    4. Makes economics dogmatic : This method makes Economics dogmatic as it refuses to admit that there can be some defects on the assumptions.

    5. Difficulty in testing the conclusions : This method make difficult to test the validity of conclusions. The conclusions drawn under this method are neither feasible nor practicable.

    6. Inadequate, data : The followers of this method adopted it on the basis of inadequate data. So the conditions arrived from the assumption, were full of inconsistencies.

    2. INDUCTIVE METHOD

    Inductive method (Inductive Reasoning) is an important method used by the economist for making conclusions on economic phenomena. It involves the process of reasoning from particular facts to the general principles. When compared to deductive method, inductive method is considered to be the more realistic, concrete and accurate method. It helps in future inquiries and acts as a guide for future inquiries. It helps in future investigation through discovery and evidence of general principles.
    When a researcher utilizes an inductive approach, they begin by collecting data that is relevant to their topic of interest. Once a substantial amount of data have been collected, the researcher will take a break from data collection to step back and get a bird’s eye view of their data. At this stage, the researcher looks for patterns in the data, working to develop a theory that could explain those patterns. Thus, when researchers take an inductive approach, they start with a set of observations and then they move from those particular experiences to a more general set of propositions about those experiences. In other words, they move from data to theory, or from the specific to the general.
    Under this Inductive method (Inductive Reasoning) the economic phenomena are tested and general conditions are drawn through four stages namely : (a) Observation (b) Formation of hypothesis (c) Generalization and(d) Verification.

    MERITS OF INDUCTIVE METHOD

    When compared to deductive method, inductive method is considered to be the more realistic, concrete and accurate method. Inductive method secures the following merits:

    1. More accurate : This method provides scope for the adoption of statistical methods. Statistical methods are useful for studying matters relating to national income, inflation, savings and investment. The conclusions drawn from such methods are more accurate.

    2. Dynamic method: This method involves observation) and analysis of facts from historical origin. As economic phenomena vary according to time, their nature, causes and effects can be effectively studied under this method. Hence this method is described as dynamic one.

    3. Helps in future inquiries: Inductive method acts as -a guide for future inquiries. It helps in future investigation through discovery and evidence of general principles.

    4. Concrete and synthetic : This method is more concrete and synthetic since it deals with the subject as a whole without dividing it into various components.

    5. More realistic : This method is more realistic as it is based on facts. It explains the facts without any distortion.
    Related to time and place : This method helps us to draw generalizations on the basis of a particular historical situation. So the generalization relate to a particular time and place. Therefore there arises no practical difficulty in applying the conclusions for solving certain economic problems.

    6. Valuable to Government: This method is of great value to the ,Government . The government by adopting this method, can solve complex economic problems.

    DEMERITS OF INDUCTIVE METHOD

    1. Delay and costly affair : This method involves a detailed process of collection, classification, analysis and interpretation of data. It also requires the services of expert statistical investigators and analysts. Therefore, this method causes delay. It requires huge expenditure.

    2. Lacks concreteness : The definitions, sources and methods (used in the statistical approach of this method) differ from investigator to investigator regarding a particular economic phenomenon. For instance different techniques are used by the investigators for calculating the national income of a country.

    3. Limited applicability : Observation and experimentation are employed in this method. But as Economics is concerned with human behavior, it is not completely possible to predict the behavior of individuals at all times. So the conclusions drawn by this method have limited applicability.

    4. Investigator’s talents doubtful : The success of this method for finding conclusions on economic phenomena depends to a great extent on the talents, capacity and intelligence of the investigators. If the investigators lack initiative and statistical knowledge, then this method is of no use.

    5. One side method : Inductive method, in the absence of deductive method is a one side view of economic phenomena. We get partial, inadequate and incomplete conclusions, if we follow this method only. So this method must be supplemented by deductive method.

    6. Not certain : The conclusions drawn from this method are not certain. As Bouldings pointed out that statistical information can only give us .propositions whose truth is more or less probable. It never gives us certainty.

    Reply
  243. Avatar Emeka Nmesoma says:
    4 years ago

    Name:Emeka Nmesoma
    Dept:Economics
    Reg:2020/242588
    Wizzyella0@gmail.com
    Inductive reasoning is a reasoning that aids in the collection of information and facts to theories it formulates principles using observation,experiments and statistical method.

    Deductive method is a reasoning that goes from general to specific,it gives a hypothesis in which when confirmed gives general economic principles or law.it doesn’t involve any complex software analysis although it starts with assumptions.

    Reply
  244. Avatar Bassey Anietie Akpan says:
    4 years ago

    Name: Bassey Anietie Akpan.
    Reg. No.: 2019/248750.
    Dept. Pure and Industrial Chemistry.
    Level: 200 Level.
    Course Code: Eco 101.
    Course Title: Principles of Economics.
    Email: harnietie10@gmail.com

    Methods of Economic Analysis.

    Any economic analysis involves the formulation of laws and generalizations through methods-deductive and inductive.

    Methods of Economic Analysis

    Deductive Method.

    This is also known as a priori reasoning. We begin from unchallenged fundamental or rudimentary assumptions/information after arriving at conclusions (constructing a hypothesis or theory) through the use of logical analysis or our very own analytical skills. On this sort of reasoning, we move from widespread to precise. The levels of deductive reasoning are:

    observation of a task/problem
    Making the speculation
    trying out the speculation, the use of more observations, and so on.

    This reasoning offers us a hypothesis and if this hypothesis gets confirmed, we get general economic concepts or laws.

    Benefits of a deductive approach.

    It is an easy method that doesn’t require the use of any complex software evaluation, etc. Only simple deductive logic is needed.

    This technique is essential for economists because it focuses upon economic reasoning that is of paramount significance.

    Disadvantages of the deductive method.

    In this method of reasoning, we begin with assumptions. Hence, if the assumptions appear to be logically incorrect, the entire process becomes defective and could give incorrect conclusions. Therefore, the logical fallacy is a disadvantage of this approach.

    Inductive method.

    This kind of reasoning flows from facts to theory. First, we acquire information facts and then move towards providing proof using economic theory and facts. This approach formulates concepts using the sub-techniques-Observations, Experimentations, and Statistical methods. Data is accumulated about a specific economic theory after which conclusions are drawn. The levels in this approach are:

    observation

    formulation of a hypothesis

    Generalizing principles

    Verifying against real facts.

    Benefits of the Inductive method.

    Considering it is primarily based on facts, it is more realistic and dependable.

    The usage of statistical methods and experimentation makes the procedure more scientific, therefore, more suitable than simply relying on your own reasoning and logic. Since

    The economic environment is dynamic and continually changing, depending upon a greater scientific approach always helps attain logical conclusions.

    Disadvantages of the inductive method.

    If the data used is inadequate and faulty, it would result in defective conclusions, making the hypothesis much less dependable. It is a time-consuming process and hence costly as well. The collection of all of the data isn’t always an easy task and varies from person to person. As to how they acquire data.

    Reply
  245. Avatar Uzodiegwu Deborah chinelo says:
    4 years ago

    Name: uzodiegwu Deborah chinelo
    Reg no:20874513EA
    Dep: Sociology and anthropology
    Email: duzodiegwu@gmail.com
    Methods of economic Analysis
    1. Deductive methods: deductive methods are theoretical deduction that is considered to be true without being based on observations and experience. And is also called analytical, priori and abstract methods
    Steps used in deductive method to form a therom
    1. perception of the problem
    2.definition of the technical terms
    3. Deducing hypothesis
    4.testing of hypothesis

    2. Inductive methods: inductive derives economic generalisation on the basis of experience and observations . And it makes use of econometric packages to run the experiment and it is also called empirical methods
    Steps used in inductive methods
    Experimentation
    Observations
    Statistical or econometric methods

    Reply
  246. Avatar Ekwe Okwuchukwu Cletus says:
    4 years ago

    Matriculation number:2020/242587
    Department: Economics
    The methods of analysis used by Economists includes:
    i.Deductive method
    ii.Inductive method

    i.)The deductive method:The deductive method is also known as priori reasoning.This method consists in deriving conclusions from general truths, takes few general principles and applies them to draw conclusions.The deductive method is simple,it doesn’t involve the use of any software analysis.
    ii) Inductive Method:This method is also known as empirical method.It involves the process of reasoning from particular facts to general principle and it is more realistic and reliable.

    Reply
  247. Avatar Okondugba-solomon Emmanuella. T. says:
    4 years ago

    NAME:OKONDUGBA-SOLOMON EMMANUELLA .T.
    FACULTY:SOCIAL SCIENCES
    DEPARTMENT:ECONOMICS
    REG NO:2018/245786
    EMAIL:ellabeautiful67@gmail.com

    METHODS OF ECONOMIC ANALYSIS
    There are several ways economists make researches, in order to carry out various economic analysis. These economic analysis are also termed as “Generalization”…They are used to describe various laws and statements of tendencies in several branches of economics especially exchange, distribution of income, consumption, production e.t.c…They also help in describing the relationship between variables, which also don’t provide any detailed explanation of anything, or a described situation, in terms of law.
    *An economic theory is also another way of deriving generalizations by economists, through a process of logical thinking. This is just an exact opposite of a law, as it gives a detailed explanation of possible conditions that may relate to any relationship stated, between two or more variables, and confirms it to be factual.
    There are also two major methods of economic analysis used by economists. They include the
    *Deductive methods
    *Inductive methods.

    DEDUCTIVE METHOD
    This method is also called an abract method. It involves an analytical approach,in order to derive economic generalizations.
    As an economists. When using Deductive method, he/she is also expected to have a very clear ideology or understanding of a particular problem, and at a particular period of time or situation….He/she also must know the specific and significant variables which regard human behaviour.
    An economists who also wants to derive economic generalizations must also be able to make assumptions. These assumptions may be behavioural or technological, depending on the state of technology, and pertaining to the Economic variables..The assumptions of an economist must also be extremely realistic, when carrying out these analysis. This stage of assumption can also be termed as “postilences”
    Economists also use deductive methods through testing or verifying hypothesis..etc

    INDUCTIVE METHOD
    An inductive method of deriving economic generalizations can also be called “Empirical method”. This method helps in generating analysis through the basis of experiences or observations.
    Also, in order to successfully obtain at least 80% of valid economic generalizations, one’s observations must be large enough. It is never advisable to attempt generalizing on the basis of few observations, due to the fact that a high percent of certainty is extremely required…
    Few most important ways of carrying out these observations used by economists are by statistical methods, observations and experiments.
    “Economic packages” are also used by economists to run analysis in inductive method such as E-views and data.

    Reply
  248. Avatar Fiebor Lawrence Emudiaga, Reg. No: 2019/244630 says:
    4 years ago

    Method of Economic Analysis

    Any economic analysis entails the creation of laws and their generalization using one of two methods: deductive or inductive reasoning.

    1. The deductive approach:
    It’s also known as abstract, analytical, or prior approaches, and it’s a method for deriving economic generalizations and theories that takes an abstract approach.
    The following are the main steps in the process of making economic generalizations using deductive methods: a. recognizing the problem to be investigated; b. precisely defining technical terms and making appropriate assumptions.

    c. Deducing hypothesis, which is the process of concluding logical reasoning.

    d. Confirmation of the deduced hypothesis

    2. Empirical methods: Inductive methods are also known as empirical methods. Based on experience and observations, it generates economic generalizations. In this strategy, thorough data on a specific economic event is collected, and an attempt is made to come at generalizations based on the observations gathered. One should not make broad generalizations based on a small number of observations. To derive economic principles, we can employ experimentation, observation, and econometric tools.

    Reply
  249. Avatar Okeke Virginia Chidimma says:
    4 years ago

    Name: okeke Virginia Chidimma.
    Reg no: 20159382IF
    Course: Business Education
    Economic generalisation can be defined as law or statement of tendencies in the various branches of economic such as consumption, production nd distribution of income.but according to Robbins it states that economic generalisation is a law or statement formalities which describes human behavior in the allocation of scarce resources between alternative ends.
    Law or generalisation just describes the relationship between variable.it does not provide any explanation of the described relation.
    Generalisation in economics have been drived in two ways.
    1, Deductive method
    2, inductive method
    Deductive method can be defined as which represents an abstract approach to the derivation of economic generalisation nd thories.
    Principle Steps in the Process of Deriving Economic Generalisation through deductive logic are;
    1, perception of the problem to be enquired into.
    2, definition of technical terms and making of assuming -is to defined precisely and unambiguously the various technical terms to be used in the analysis as well as to state clearly the assumption he makes to derive generalisation.
    3, deducing hypotheses through logical deduction: hypotheses can be defined as a relationship between factors affecting phenomena.
    4, testing or verifying hypotheses; hypotheses made above needs to be verified before established as generalisation or principles of economic and for the verification of hypotheses.economist cannot controlled experiment because they need to discover informalities pattern in man..
    VARIOUS STEPS INVOLVES IN DEDUCTIVE METHOD
    1,. Selecting the problem
    2, formulation on the assumption on which the problem is explore
    3 the formulation of hypotheses through logical reasoning
    4,. Verifying the hypotheses.
    ADVANTAGE/MERIT OF DEDUCTIVE METHOD
    1, less time consuming and less expensive.: useful thories Can be derived without the tenuous and detailed collection nd analysis of Data which required under the inductive method.
    2,. It is very extremely useful method of constructing economic theories.
    3,. Useful mathematical techniques can be employed to derive law nd thories of economics.
    DISADVANTAGE/DEMERIT OF DEDUCTIVE METHOD
    1,. The use of deductive method in deriving economic generalisation required the use of high level competence in logic and theoretical abstraction.
    2,. Most economist have preconceived notions nd biases on several economic issues.
    3,. It is highly sophisticated theoretical model based on highly unrealistic assumption may be developed which do not have any operational significance.
    INDUCTIVE METHOD
    Inductive method which is also called empirical method derived economic generalisation on the basic of experience and observation.
    THREE Ways In Deriving Economic Principle And Theories.
    1,. Experimentation
    2,. Observation
    3,. Statistical or economic method.
    VARIOUS STEPS INVOLVES IN INDUCTIVE METHOD
    1, The problem: the problem should be properly selected or clearly stated.
    2, data processing
    3,. Observation
    4, generalisation

    Reply
  250. Avatar Fiebor Lawrence Emudiaga says:
    4 years ago

    Method of Economic Analysis

    Any economic analysis entails the creation of laws and their generalization using one of two methods: deductive or inductive reasoning.

    1. The deductive approach:
    It’s also known as abstract, analytical, or prior approaches, and it’s a method for deriving economic generalizations and theories that takes an abstract approach.
    The following are the main steps in the process of making economic generalizations using deductive methods: a. recognizing the problem to be investigated; b. precisely defining technical terms and making appropriate assumptions.

    c. Deducing hypothesis, which is the process of concluding logical reasoning.

    d. Confirmation of the deduced hypothesis

    2. Empirical methods: Inductive methods are also known as empirical methods. Based on experience and observations, it generates economic generalizations. In this strategy, thorough data on a specific economic event is collected, and an attempt is made to come at generalizations based on the observations gathered. One should not make broad generalizations based on a small number of observations. To derive economic principles, we can employ experimentation, observation, and econometric tools.

    Reply
  251. Avatar Ezeobi Christine says:
    4 years ago

    NAME: Ezeobi Christine Oluebube
    REG NO: 2019/244588
    E-MAIL ADRESS: oluebube.ezeobi.244588@unn.edu.ng

    The methods of economic analysis used by economists includes:-
    Inductive method and Deductive method.
    • INDUCTIVE METHOD:
    Theory~hypothesis~observation~confirmation.
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    ×Observation
    ×Formulation of a hypothesis
    ×Generalizing principles
    ×Verifying against actual facts.

    This method has it’s advantages and disadvantages,
    Its advantages includes:
    -Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    -Since it is based on facts it is more realistic and reliable.
    -Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Its disadvantages includes:
    -It is a time-consuming process and thus expensive as well.
    -The collection of all the data is not an easy job and varies from person to person. As to how they collect data.
    -If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    • DEDUCTIVE METHOD:
    Information~pattern~tentive hypothesis~theory.
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    ×Observation of a task/ issue
    ×Making the hypothesis
    ×Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.
    This method also has its advantage and disadvantage.
    Its advantages includes;
    -This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    -It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    Its disadvantage is the fact that in this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Reply
  252. Avatar Onuagha Marymodesta Chidera. Reg no:2019/242613. Dept:Pure and Industrial Chemistry says:
    4 years ago

    We have two methods of analysis by Economists and they are:
    1)The Deductive method
    2)The Inductive method
    The Deductive method also called the abstract method is based on a prior reasoning and conclusions are drawn from certain basic assumptions. It moves from general assumption to the specific application.
    STEPS INVOLVED IN DEDUCTIVE METHODS
    *Observation of task:that is having a clear idea of the problem to be enquired into.
    *Making the hypothesis:A hypothesis describes relationship between factors affecting a phenomenon. Then, through logical process hypothesis is deduced from the assumptions made.
    *Testing of hypothesis:for verification of hypothesis, Economists cannot make a controlled experiments, because they to discover uniformities in behavior patterns of man. Therefore Information regarding uncontrolled experience about the behavioural patterns concerning variables about man and the economy are amply available.
    MERITS OF DEDUCTIVE METHOD
    *It is a simple method that requires only simple logic.
    *It focuses upon economic reasoning which is of great importance.
    *It is indispensable.
    *There being a limited scope of experimentation,the method helps in deriving economic theories.
    DEMERITS OF DEDUCTIVE METHOD
    *It is restricted only to the derivation or economic theories.
    *It is reliable only when assumptions are made
    *It varies from time to time and place to place hence not a universal one
    The Inductive method also called the empirical method derives generalisations on the basis of experience and observations. As the number of observations has to be large if it can yield a valid economic generalisation. One should not generalize on the basis of a very few observations.
    STAGES OF INDUCTIVE METHOD
    *Experimentation
    *Observation
    *Statistical or Econometric method
    STEPS INVOLVED IN INDUCTIVE METHOD
    *Identify the problem
    *Data collection and some preliminary thinking
    *Data processing to find out how they are related
    *Develop a theory and refine it through statiscal methods.
    *Making predictions and test them.
    MERITS OF INDUCTIVE METHOD
    *It is highly practical and realistic as it describes things as they are.
    *It is helpful in verifying the conclusions of the Deductive method.
    *Economic laws under this method are not universal but valid only under certain conditions.
    DEMERITS OF INDUCTIVE METHOD
    *When the investigators lack a balanced judgement,there is the risk of drawing hurried conclusions based on inadequate and irrelevant facts and data.

    Reply
  253. Avatar Ezeuduji bright ifechukwu says:
    4 years ago

    Name:Ezeuduji bright ifechukwu
    Matric no:2020/242590
    The method of Economics analysis is
    – Deductive method
    – Inductive method
    1) Deductive method:The principal steps in the process of deriving economic generalization through deductive logic.
    First and foremost is to have the clear ideas of a problem he/she must identify the problem. The next step in the process of deriving economic generalization is to defined the technical term to be used and making assumption. In making assumption means predicting the causes, and the consequence or effect from that particular problem you observe. The next step is deducing the hypothesis through logical deduction. Which means reducing the assumption through reasonable deduction. These days all branches uses mathematics as a tool in reducing the hypthesis because it makes ot more exact. Finally testing of hypothesis which means checking whether it realistic or not. These days the best ways of testing the hypothesis is by statistical method or econometric method which makes it easily to check and if it’s not realistic it will be rejected but if realistic it will be approved.
    2) Inductive method: The principal steps of inductive method. The first method which is related to deductive is used to Identify the clear problem in the society then defining them in the technical term and varified it using the related problem. Then the next steps it to collection of data about the related problem and doing some useful thinking between the relevant variable. After that the most important step it to construct the economic theories using the data collected which can now be refined and tested through statistical method. Then finally if the prediction is actually a fact then it’s accepted, if not then rejected.

    Reply
  254. Avatar Ogbu christiana.A. says:
    4 years ago

    Name: ogbu christiana .A.
    Department :Nursing sciences
    Faculty:Health sciences
    Reg.no 95840637fh
    email:ogbuadaezec@gmail.com

    METHODS OF ECONOMIC ANALYSIS INCLUDE:
    Deductive method
    Inductive method
    The deductive method is also called abstract, analytical and a priori method and represent an abstract approach to the derivation of economic generalisations and theories . The principal steps in the process of deriving economic generalisations through deductive logic are:(a) perception of the problem to be enquired in to : which means that in any scientific enquiry the analyst must have a clear idea of the problem to be enquired in to.(b) Defining precisely the technical terms and making appropriate assumptions, often called postulates or premises(c) Deducing hypothesis, that is deriving conclusions from the premises through the process of logical reasoning .(d)Testing of hypothesis deduced .Advantage of deductive method (i) useful mathematical techniques can be employed to derive laws and theories of economics with the aid of rigorous mathematical logic, economic theories can be developed through the process of deduction which can successfully explain economic phenomena. DISADVANTAGE OF DEDUCTIVE METHOD.In this method of reasoning we start from assumptions, thus if the assumption happens to be logically flawed the whole process becomes faulty and would give wrong conclusions . 2 INDUCTIVE METHOD:The Inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected. But, it is worth mentioning that the number of observations has to be large if it can yield a valid economic generalisations on the basis of a very few observations. There are three ways which can be used for deriving economic principles and theories, they are:(a)Experimentation (b) observations (c) statistical or econometric method. Advantage of Inductive method (a)It is based on facts and is more realistic and reliable. DISADVANTAGE OF INDUCTIVE METHOD (a)if the data used is insufficient and faulty it will lead to faulty conclusions making the hypothesis less reliable. (b) it consumes time and is expensive. In conclusion ,both methods are needed for economic analysis, you can apply any of them or both if such situation arises.

    Reply
  255. Avatar Chima Chijindu EMMANUEL says:
    4 years ago

    Name: Chijindu Chima Emmanuel
    Reg number: 2019/241171
    Faculty: physical science
    Department:pure and industrial chemistry

    Methods of Economic analysis
    Economic analysis involves the proper arrangements of economic strategies for the proper functioning of the economy or growth it also involves the formulation of laws and generalization through two stages
    It is divided into two which are the deductive method and the inductive method
    The deductive method is a simple method which starts from assumptions to laws before it becomes a theory
    Advantages
    It is very simple which doesn’t involve the use of a complex software analysis
    It is important for economist as it focuses on economic reasoning which is important
    Disadvantages involves
    The logical fallacy whereby the assumption made were flawed which will lead to the whole process being flawed

    Inductive method
    This method flows from facts to theory. Firstly information is collected then evidence is provided using the theory and facts
    This method uses the sun-methd observation where data is collected about a particular economic theory then a conclusion is drawn
    Advantages involve
    This method is reliable and realistic
    Using statistical methods makes the process more scientific and acceptable to the economic environment.
    Disadvantages
    Insufficient Data collection and faulty conclusions and hypothesis made will be less reliable and dependable
    Collection of data isn’t easy it varies from person to person

    Reply
  256. Avatar Aninze Charles Chigozie says:
    4 years ago

    Name: ANINZE CHARLES CHIGOZIE

    DEPARTMENT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT

    MATRIC NUMBER: 2020/243147

    aninzecharles58@gmail.com

    No 1…

    The basic method of analysis used by economics are
    * DEDUCTIVE METHOD
    * INDUCTIVE METHOD

    NO 2 …

    in my own understanding deductive method is a Descending process in which we move from a general principal to it’s consequences. It drives conclusion from the basic assumptions established by other methods.

    INDUCTIVE in the other way round is an ascending process in which facts are gathered, arranged and general conclusions are drawn.

    Reply
  257. Avatar UZOMA EMMANUEL CHUKWUEMEKA says:
    4 years ago

    Name: Uzoma Emmanuel Chukwuemeka
    Reg no: 20039425EA
    Dept: Public Administration and local government
    Email: uzemmyemma@gmail.com

    The basic Methods of analysis used by Economist Are:
    1. DEDUCTIVE METHOD: It is also called abstract, analytical and priori methods and represents an abstract approach to the derivation of economic generalizations and theories. The principal steps in the process of economic generalizations through deductive methods are:
    a. Perception of the problem to be inquired
    b. Defining precisely the technical terms and making appropriate assumptions.
    c. Deducing hypothesis that is deriving conclusions from the process of logical reasoning.
    d. Testing of hypothesis deduced.
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required but on the other hand, the use deductive method requires the use of high-level competence in logic and theoretical abstractions

    2. INDUCTIVE METHOD: Which is also called empirical method. It derives economic generalizations on the basis of experience and observations. In this method, detailed data are collected with regard to a certain economic phenomenon and effort is made to arrive at certain generalization which follow from the observation collected. One should not generalize on the basis of a very few observation. We can use the experimentation, observation and econometric methods to derive economic principles.Since it is based on facts it is more realistic and reliable but on the other hand, It is a time-consuming process and thus expensive as well.

    Reply
  258. Avatar UZOMA EMMANUEL CHUKWUEMEKA says:
    4 years ago

    Name: Uzoma Emmanuel Chukwuemeka
    Reg no: 20039425EA
    Dept: Public Administration and local government
    Email: uzemmyemma@gmail.com

    The basic Methods of analysis used by Economist Are:
    1. DEDUCTIVE METHOD: It is also called abstract, analytical and priori methods and represents an abstract approach to the derivation of economic generalizations and theories. The principal steps in the process of economic generalizations through deductive methods are:
    a. Perception of the problem to be inquired
    b. Defining precisely the technical terms and making appropriate assumptions.
    c. Deducing hypothesis that is deriving conclusions from the process of logical reasoning.
    d. Testing of hypothesis deduced.
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required but on the other hand, the use deductive method requires the use of high-level competence in logic and theoretical abstractions

    2. INDUCTIVE METHOD: Which is also called empirical method. It derives economic generalizations on the basis of experience and observations. In this method, detailed data are collected with regard to a certain economic phenomenon and effort is made to arrive at certain generalization which follow from the observation collected. One should not generalise on the basis of a very few observation. We can use the experimentation, observation and econometric methods to derive economic principles.Since it is based on facts it is more realistic and reliable but on the other hand, It is a time-consuming process and thus expensive as well.

    Reply
  259. Avatar Enyi Favour Onyiyechi says:
    4 years ago

    Name: ENYI FAVOUR ONYIYECHI
    matric no.: 2020/242586
    gmail: favourenyi9@gmail.com

    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.

    1. Deductive Method: This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    i) Observation of a task/ issue
    Making the hypothesis
    ii) Testing the hypothesis using more observations, etc.
    iii) This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Deductive method is important for economists as it focuses upon economic reasoning which is of paramount importance,. while fallacy is a disadvantage of this method.

    2. Inductive Method: this type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    * Observation
    * Formulation of a hypothesis
    * Generalizing principles
    * Verifying against actual facts.

    Inductive Method is important because Since it is based on facts it is more realistic and reliable,using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic. While it becomes a disadvantage if the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as before.

    Reply
  260. Avatar Magbo Chidimma Joy says:
    4 years ago

    Name: Magbo Chidimma Joy. Matric/ Reg Number: 2020/242674. Department: Education Economics ( social science Education) Course Code: Eco 101. Course Title: Principes of Economics Email: joychidimma961@gmail.com. Two Basic method of Analysis used by Economics are: 1 Deductive Method. 2 Inductive Method. Explanation:
    1 Deductive Method: This is also called a prior reasoning, we start from unchallenged elementary or rudimentary assumptions/facts and then arrive at conclusion. In this kind of reasoning we go from general to specific. The stage in deducting reasoning are
    i Observation of a task/issue
    ii Making the hypothesis
    iii Testing the hypothesis using more observation.
    This reasoning gives us a hypothesis and if this hypothesis get verified we get general Economics principles or Laws
    Advantages of Deductive Method
    i. it is a simple method, it doesn’t involve the use of any complex software analysis e.t.c.
    ii.This method focuses more on Economic reasoning which is of paramount importance to Economists.
    Disadvantages of Deductive Method
    i.The method of reasoning start from assumptions thus if the assumptions logically flawed the whole process becomes Faulty and would give wrong conclusion.
    2 Inductive Method :This type of reasoning flows from facts to theory. This method formulates principles using the sub-method observations, Experimations, statistical method.
    The stages in inductive Method
    i Observation
    ii Formulation
    iii Generalising of principles
    iv Verifying against actual facts
    Advantages of inductive Method
    i. since it is based on facts it is more realiable.
    ii. Using statistica methods and experiments makes the process more scientific this making it more acceptably universally.
    Disadvantages of inductive Method
    i The collection of all the data is not an easy Job and varies from person as to how they collect data.
    ii. It is time consuming process and thus expensive as well.

    Reply
  261. Avatar NWAFOR CHIBUNNA SABASTINE says:
    4 years ago

    NAME:-NWAFOR CHIBUNNA SABASTINE
    REG NUMBER:- 2020/243135
    DEPT:- PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT.
    EMAIL:- chibunnanwafor23@gmail.com

    1) The basic methods of analysis used by Economists are:-
    (I) Deductive method
    (ii) Inductive method.

    2) In my own understanding deductive method is a descending process in which we move from a general principle to it’s consequences. It also derives new conclusions from the basic assumptions established by other methods. It includes the process of reasoning from the certain principles, which are assumed to be true, to the analysis of facts.
    These method involves some steps which are:-
    -Selecting the problem.
    -The formulation of assumptions on the basis,of which the problem is to be explored.
    -The formulation of hypothesis through the process of logical reasoning whereby inferences are drawn.
    -you will now finally verify the hypothesis.

    2) While in the inductive method, it’s the other way around, it’s an ascending process, in which facts are gathered, arranged and general conclusions are drawn. It’s also a reasoning from a particulars to the generals or from the individual to the universal.
    These method also have some steps which are:-
    – The problem
    – Data
    – Observation
    – Generalisation.

    Reply
  262. Avatar Oyibo wisdom Urhinrhin says:
    4 years ago

    DEPT:PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT
    MATRIC NO:2020/243136
    EMAIL :wisdommatt2@gmail.com

    There are basically two methods used for economic analysis namely:
    A. Deductive method
    B. Inductive method
    DEDUCTIVE METHOD :
    The deductive method is know for it’s use of logical(analytical), theoritical approach in making generalisation (law),it’s based on assumptions which are perfectly valid which at some point makes it have little nexus with reality. In this method indisputable fundamental facts are used, further ushered by numerous assumptions in order to make a theory. This method is often seen as an hypothetical method due the absence of observation
    and the fact that some assumptions may not correspond with reality but are near facts which are used as postulates at the start. The deductive method also known as the priori method has stages namely:
    i. Understanding the problem enquired into
    ii. Defining precisely the postulates needed
    iii. Deductive reasoning
    iv.Verification of hypothesis made

    Understanding the problem enquired into :
    It’s important to know the problem before you can successfully make a generalization, so it’s important for economist to study the problem
    and consider certain variables in order to make precise postulates.

    Defining precisely postulates needed :
    It’s of utmost importance that after understanding the problems, precise postulates (technical terms, suggestions, assumptions )are to be made.

    Deductive reasoning :
    This is the stage where various postulates made are deduced through logical reasoning into hypothesis.

    Verification of hypothesis made :
    After successfully deducing hypothesis such hypothesis must be tested before they become generalisation (law)or principles of economics.

    INDUCTION METHOD:
    This method involves the use of practical(realistic) facts which helps to reduce the gulf between theory and practical postulations, this method is carried in two ways which are the experimentation and statistical form, where the statistical form(econometric tables) is mostly used, so after observation has been made and conclusions drawn,such conclusions are then verified in reference to actual facts. Stages of induction methods are as follows :
    i. Experimentation
    ii. Observation
    iii. Statistical or econometric method

    EXPERIMENTATION:
    Since facts are practical and realistic,studies and researches are to be made to collect data relating to the problem and also variables which may affect the data collection as to relating to the problem enquired.

    OBSERVATION:
    The next step is studying and processing the data collected in order to understand the beneficial functionality of variables as to relating to the problem, with this observation made, only then can economic theories be developed.

    STATISTICAL OR ECONOMETRIC METHOD:
    In this method a deductive reasoning or approach is used to verify the theories with actual facts but when these theories are not in line with the actual facts then they considered useless and therefore discarded.

    So it is useful to note that both method (deductive and inductive)work together and both augument each other in order to present more efficient, reliable and precise principles of economics or generalisation as we may have it.

    Reply
  263. Avatar Ogbu Philip Chukwuemeka says:
    4 years ago

    Name; Ogbu Philip Chukwuemeka
    Reg No; 20681551DA
    Department; Philosophy
    Email; Ogbuphilipchukwuemeka@gmail.com

    Basic economic tools are required for a proper and concise analysis of economic problems. Some of the economic problems are usually staged in the form of statements. The use of the basic tools helps to make it easier for interpretation and understanding of the economic principles.
    Some of these basic tools used for the economic analysis are as follows: Tables, graphs, mode, and standard deviation.

    ( 1 ) Tables: A table is a systematic arrangement of information, facts and data with the use of rows and the columns for the presentation, it helps to make it easier for understanding. Tables usually serve as one of the most commonly used tools for economic analysis.

    ( 2 ) The Graph: Graph as its name implies, is used for data where emphasis is continuously changing, line graphs is also used to join and connect the highest as well as the lowest points in a group of data. Line graph can be straight or curve.

    ( 3 ) Mode: Mode is the most frequently occurring number in a set of numbers or data. It shows the observation that is most popular. It is the most frequently occurring value in a distribution.

    ( 4 ) The Median: The median is an average, which is the middle value when figures are arranged in order of magnitude. In an even distribution, the median is the average of the two middle numbers. In other words, the median of a distribution is the middle value when the observations are arranged in order of magnitude starting with either the smallest or the largest number. The median is therefore the value of the middle item.

    ( 5 ) Standard deviation: the standard deviation refers to the square root of the variance. The standard deviation can also be referred to as the “root mean square deviation”.

    Reply
  264. Avatar AGU CHINECHEREM MODESTEUS , 2019/244619 says:
    4 years ago

    Name : AGU CHINECHEREM MODESTEUS
    Reg no:2019/244619
    Email: modesteuschinecherem@gmail.com

    Methods of Economic Analysis
    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.
    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Deductive And Inductive Methods

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  265. Avatar AGU CHINECHEREM MODESTEUS , 2019/244619 says:
    4 years ago

    Methods of Economic Analysis
    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.
    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Deductive And Inductive Methods

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  266. Avatar Ugwu Adanna chiamaka says:
    4 years ago

    Name:ugwu Adanna chiamaka
    Jamb registration number: 20694893BA
    Department: public administration and local government.
    Email: ugwu.Adanna chiamaka again.com.

    METHOD S OF ECONOMIC ANALYSIS
    There are two basic methods of economic analysis namely
    i deductive
    ii inductive
    Deductive:The deductive method is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalisations and theories.
    The principal steps in the process of deriving economic generalisations through deductive logic are:
    (a) Perception of the problem to be enquired into;
    (b) Defining precisely the technical terms and making appropriate assumptions, often called postulates or premises;
    ADVERTISEMENTS:
    (c) Deducing hypotheses, that is, deriving conclu­sions from the premises through the process of logical reasoning; and
    (d) Testing of hypothesis deduced.
    Various steps in deductive method
    1 Identity the problem
    2 Defining technical terms and relevant variables
    3 making assumption
    4 process of logical deduction to derive implications
    5 formulation of hypothesis
    6 making predictions and testing them
    7 predictions are in agreement with facts

    2. Inductive Method:
    The inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.
    But, it is worth mentioning that the number of observations has to be large if it can yield a valid economic generalisation. One should not generalise on the basis of a very few observations. There are three ways which can be used for deriving economic principles and theories.
    They are:
    (a) Experimentation,
    (b) observations,
    (c) statistical or econometric method.

    Conclusion: Integration of Two Methods:
    Now, the controversy which existed among the earlier economists as to whether deductive or inductive approach is more appropriate in developing economic theories and principles has been resolved. The modem viewpoint in this regard is that both are needed for the proper development of scientific economic theories. Indeed, the two are complementary rather than competitive.

    Reply
  267. Avatar Nsude Onyinyechi Gift says:
    4 years ago

    Name:Nsude Onyinyechi Gift
    Reg number: 21253898HF
    Department: Economics
    Email: onyinyensudegift@gmail.com
    Methods Of Economic Analysis
    1. Deductive method: This method is based on assumption or facts before arriving to conclusions(using logical analysis or analytical abilities). This method of reasoning goes from general to specific. The stages are
    ~observation of a task
    ~making a hypothesis
    ~testing the hypothesis
    If this hypothesis gets verified. It gives us an economic law
    2. Inductive method: Here we get information and facts then we move to provide evidence using economic theory or facts. It goes from specific to general. The stages are
    ~ observation
    ~ provision of hypothesis
    ~ generalizing principles
    ~ verification against actual facts

    Reply
  268. Avatar Dike Emmanuella Chinonyerem says:
    4 years ago

    Name:Dike Emmanuella Chinonyerem
    Department: Nursing science

    The basic methods of analysis used by economists are :
    1)Deductive method
    2)Inductive method
    1)Deductive method;
    This method deals with assumptions,facts and then arrive at certain conclusions using logical analysis or our own analytical abilities. The stages involved in this method are;
    A) Observation of the task/issue-There must be a problem to be solved/tackled.Here you have to define the problem precisely.
    B) Making the hypothesis- Here, you make realistic assumptions that verifiable i.e.postulates.
    C) Testing your hypothesis with more observations.
    If the hypothesis gets verified,we o tain economic principles and laws. This method does not involve any complex software analysis and I is focused on economic reasoning which is very important.
    2)Inductive Method:
    This method formulate principles by using sub-methods i.e observations,experimentations,statistical methods. The stages involved in this method are:
    A)Observation
    B)Formulation of hypothesis
    C) Generalizing principles
    D) Verifying against actual facta
    Since inductive method is based on facts and it is more reliable and realistic. Using statistical methods, experimentations makes the process more scientific.

    Reply
  269. Avatar Joy Ayomide olajide ,2019/244673 says:
    4 years ago

    Methods of Economic Analysis
    1 .Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    2.Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    Reply
    • Avatar Joy Ayomide olajide ,20j19/244673joy Ayomide says:
      4 years ago

      Department :pure and industrial chemistry

      Reply
  270. Avatar Onoka Esther Chika says:
    4 years ago

    Name:Onoka Esther Chika
    Department: Combined Social Science (Economics/Psychology)
    Reg Number:2020/242905

    TYPES OF ECONOMIC ANALYSIS
    There are two types of economic analysis namely: Deductive and Inductive Analysis.

    (1) Deductive Analysis:This deals with mostly assumptions,it is not not based on facts but on self assumptions.some of the assumptions may not be equivalent to the actual facts but they can be used as a premise of reasoning and drawing of conclusions,but the assumptions cannot be greater than the actual facts.
    Stages involved in deductive analysis
    (a) Identifying the problem to worked on
    (b) Making reliable assumptions on the problems identified
    (c) Deriving conclusions from the assumptions
    (d) Testing the conclusions, derived from the assumptions, made on the identified problem.

    (2) Inductive Analysis:This has to do with the collection of facts , drawing of conclusions from the facts and testing the conclusions. It begins with facts and then ends with theory except on some occasion,where the conclusions made are not reliable or relevant,the the theory can be rejected. Inductive Analysis is more realistic than the Deductive Analysis because it is made on facts which can be verified. inductive analysis can be use to make predictions about what will happen or based on what has happened already.
    Stages Of Inductive Analysis
    (a) Identifying the problem
    (b) Define some variables which are related to the problem
    (c) Collect data about the variables, and the problem identified and do some research/thinking about the possible relationship between the two(the identified problem and the related variable)
    (d) processing of the data collected from and drawing some conclusions from it
    (e) Testing the conclusions
    Lastly, making theories from the conclusions.
    The theory can still be rejected after all this processes only,if the results are not reliable or factual.

    Reply
  271. Avatar Ndubueze Chigoziri Franklin says:
    4 years ago

    Name: Franklin Ndubueze Chigoziri
    Registration number: 2020/242606
    Department: Economics
    Email: joel40258@gmail.com
    Methods of Economic Analysis
    There are only two methods of Economic Analysis. They are:
    The Deductive Method: In economics, we work generalizations and theories. The principal steps into making generalizations is perceiving the problem on the economic areas concerning humans that we want to study. Then afterwards, define precisely, the technical steps and then make assumptions. These assumptions are what we economists call postulates. Then later, we deduce what we call Hypothesis from the assumptions or postulates taken. A hypothesis describes the relationship between factors affecting a phenomenon; it establishes the cause and effect relationship between the variables having a bearing on the phenomenon. The hypothesis obtained have to be verified before they can be established generalizations or principles of economics.
    The Inductive Method: This is also called the Empirical method. It derives generalizations on the basis of experience and observations. In this method, detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at a certain generalization which follow from the observations collected.

    Reply
  272. Avatar Ugwu Adanna chiamaka says:
    4 years ago

    METHOD S OF ECONOMIC ANALYSIS
    There are two basic methods of economic analysis namely
    i deductive
    ii inductive
    DeductiveThe deductive method is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalisations and theories.
    The principal steps in the process of deriving economic generalisations through deductive logic are:
    (a) Perception of the problem to be enquired into;
    (b) Defining precisely the technical terms and making appropriate assumptions, often called postulates or premises;
    ADVERTISEMENTS:
    (c) Deducing hypotheses, that is, deriving conclu­sions from the premises through the process of logical reasoning; and
    (d) Testing of hypothesis deduced.
    Various steps in deductive method
    1 Identity the problem
    2 Defining technical terms and relevant variables
    3 making assumption
    4 process of logical deduction to derive implications
    5 formulation of hypothesis
    6 making predictions and testing them
    7 predictions are in agreement with facts

    2. Inductive Method:
    The inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.
    But, it is worth mentioning that the number of observations has to be large if it can yield a valid economic generalisation. One should not generalise on the basis of a very few observations. There are three ways which can be used for deriving economic principles and theories.
    They are:
    (a) Experimentation,
    (b) observations,
    (c) statistical or econometric method.

    Conclusion: Integration of Two Methods:
    Now, the controversy which existed among the earlier economists as to whether deductive or inductive approach is more appropriate in developing economic theories and principles has been resolved. The modem viewpoint in this regard is that both are needed for the proper development of scientific economic theories. Indeed, the two are complementary rather than competitive.

    Reply
  273. Avatar Onuka chidinma Lekwa says:
    4 years ago

    Methods of economic analysis
    Inductive
    Deductive
    Like any other science ,we all know Economics uses two important methods in its Investigation of laws and principles .
    1. Inductive method:economists from a practical angle to problems of science to reduce the gulf between theory and practice.
    Induction is done by
    Experimantation and statistical forms.
    2. Deductive method:is known as the analytical abstract a priori method.
    Here we start with certain formal data and assumptions.

    Reply
  274. Avatar Emmanuel Angela ogechi says:
    4 years ago

    Name: Emmanuel Angela Ogechi
    Reg no:20642563da
    Email: emmanuelangela981@gmail.com
    Department: public administration and local government

    The basic methods of analysis used by economists are
    1.Deductive methods
    2.Inductive methods
    1.DEDUCTIVE METHOD : this method which is also know as abstract analytical method tend’s to proceed from the general to the particular, in the sense that some assumption may not correspond to actual facts, but very near actual facts which maybe used as a premise for starting reasoning and drawing conclusion.
    They are steps in the process of deriving economic generalization through deductive logics and there are:
    a.Preception of the problem:here the analyst or theorist must have a clear idea of the problem to be enquired into.
    b.Definition of technical terms and making of assumption:here the assumption maybe behavioral pertaining to the behavior of the economic variable.
    c.Deducing hypothesis through logical deduction: this hypothesis describes relationship between the variable having a bearing on the phenomenon,then through logical process hypothesis is deduced from the assumption made.
    d.Testing or verification of hypothesis:in this case the hypothesis obtained above have to be verified by ore they are established as generalized or principle of economics.
    2.INDUCTIVE METHOD: this method is also know as empirical method it derives economic generalization on the basis of observation and experience.in inductive method datas which are detailed are collected with regards to a certain economics phenomenon and effort which then arrives at certain generalization that follows from the observation collected.
    There are three ways which can be used to derive economic principle and theories and there are:
    a.Experimentation
    b. Observation
    c. Statistical or econometrics method
    In experimentation the use of contrived experiment is limited in economics, firstly,unlike natural science which are concerned with analysing the behavior of either inanimate object or obedient animals under the influence of chloroform, economics deals with the behavior of man who is quite fickle wayward and unmanageable.secondly an economic phenomenon is the result of multiplicity of factors and causes an interacting upon each other.thirdly economists study the economic phenomena in which pressure group with their different ideologies play a crucial part and their activities render it difficult to move controlled in the economic world.

    Reply
  275. Avatar Dickson Edith Ezinne says:
    4 years ago

    Dickson Edith Ezinne
    ejadickson952@gmail.com
    Reg no: 2020/242619
    Dept: Economics

    The two methods are:
    – Deductive method
    – Inductive method.

    – Deductive method is simply making use of facts or assumptions then making conclusions with hypothesis by using logical analysis or our own reasoning from observation.
    – Inductive method, in this, information and facts are collected first then evidence(s) using Economic theory and facts have to be provided. Data is collected about a particular Economic theory and then, conclusions are drawn. This method is usually more realistic and reliable.

    Reply
  276. Avatar Eze Faith Chioma says:
    4 years ago

    Name: Eze Faith Chioma
    Reg no: 21631672ja
    Email: ezefaith2003@gmail. Co
    Methods Of Economic Analysis
    We have two methods of economic analysis which are;
    DEDUCTIVE METHOD: This is also called PRIORI Reasoning. We started from unchallenged elementary and then arrive at conclusions using logical analysis in this kind of reasoning. We got from general to specific.
    Stages Of Deductive Method:
    * observation of task issues
    * making of hypothesis
    * Testing the hypothesis using more observation
    Its advantage is that its a simple method, it doesn’t involve the use of any complex software analysis e.t.c only simple deductive logic is required
    Its disadvantages is that in this method if reasoning we start from assumptions, this, if they assumption happen to be logically flawed the whole process becomes faulty and would give wrong conclusions.
    * INDUCTIVE METHOD: This type of reasoning flows from facts to theory . First we collect informations and facts and then we move towards providing evidence using economic theory and then conclusions are drawn.
    STAGES IN THIS METHOD ARE;
    * Observation
    * Formulation of hypothesis
    * Generalizing principles
    * Verifying against actual facts
    One of the advantage of inductive method is that since its based on facts its more realistic and reliable.
    If the data used is insufficient and faulty it would lead to faulty concluaions, making the hyoothesis less reliable, therefore its a disadvantage to this method.

    Reply
  277. Avatar Mordi chidera Reginald says:
    4 years ago

    The Methods Of Economic Analysis
    Mordi chidera Reginald
    20763680HA
    chideramordi43@gmail.com
    Economic Analysis has to do various processes aimed at studying observable phenomenon and formulation of laws and generalisations from it.
    Basically, there are two methods of economic analysis, which are deductive and (
    Inductive economic analysis.
    Deductive abstract) method is an approach that entails moving from the general observable phenomenons to a specific conclusion about an economic phenomenon.The steps involved in using this approach in economic analysis is first of all, identifying the problem that needs to be studied, making postulates or premises on which hypothesis(statement subject to verification) are built upon and finally the hypothesis is tested to determine if it is in consonance with actual facts in the economy.
    Inductive (empirical)method drives economic analysis on the basis of experience and observations.in this approach data are collected about a specific phenomenon and from there efforts are made to arrive at a general conclusion.The steps in this approach involves collecting data about variables such as price, unemployment, income, consumption interest rate and so on and studying there functional relationships.After these prediction(s)is (are) made and if the predictions are in consonance then it is accepted as a theory.
    In conclusion both methods are highly imperative in carrying out a good analysis of economic phenomenon.deductive approach formulate hypothesis and inductive method uses it empirical nature of statistics and econometrics to verify its consistency with actual facts.

    Reply
  278. Avatar Orji Davidkenechukwu says:
    4 years ago

    Name: Orji David kenechukwu
    Reg no: 2020/242635
    Department : Economics 100l
    E-mail: davidorji2002@gmail.com

    Methods of of Economic analysis includes

    Deductive method
    Inductive method

    Deductive method : can also be called abstract ,analytical and a prior method and it represents an abstract approach to the derivation of economic generalization and theories
    The principal steps in the process of deriving economic generalization includes
    (1) Perception of the problem : In any scientific enquiry, the theorist must have a clear idea of the problem to be enquired into.
    (2) Defining precisely the technical terms and making appropriate assumption, often called premises : The theorist is to define precisely the various technical terms to be used in the analysis and to state clearly the assumption he makes to derive generalization.
    (3) Deducing of hypothesis : A hypothesis describes relationships between factors affecting a phenomenon ; so therefore through logical process hypothesis is deduced from the assumption made .
    (4) Testing of hypothesis
    Hypothesis obtained have to be verified before they are established as a method of generalization of economy
    Merits
    (1) it is leas time consuming and less expensive
    (2) The use of mathematical techniques in deducing theories brings exactness and clarity in economic analysis
    Demerits
    (1) The deductive method is highly abstract it requires a great deal to care to avoid bad logic or faulty economic reasoning .

    Inductive Method
    The inductive method which is also called empirical method was adopted by the historical school of Economist . it involves the process of reasoning from particular facts to general principle
    The method derives economic generalization on the basis of
    (1) Experiments
    (2) Observation
    (3) Statistical methods .
    In this method data is collected about a certain phenomenon . These are systematically arranged and the general conclusions are drawn from them
    For example we observe 100 persons in the market . We find that nearly 95 persons buy from the cheapest shops. Out of the 5 which remains 4 persons buy local products even at a higher rate just to patronize their own products .While fifth person didn’t buy .From observation we can easily draw conclusion that people like to buy from a cheaper shop unless they are want to patronize their own products
    Steps involved in Inductive method includes
    (1) Observation
    (2) Formation of hypothesis
    (3) Generalization
    (4) Verification
    Merits of inductive method includes
    (1) Inductive method helps in future investigation
    (2) It is based on facts as such the method is realistic
    Demerits
    (1) It is time consuming and expensive to operate
    (2) If conclusions are drawn from insufficient data, the generalization obtained may be faulty .

    Reply
  279. Avatar MBIBE MARTHA QUEEN says:
    4 years ago

    NAME: MBIBE MARTHA QUEEN
    REG NO: 2020/242938
    DEPARTMENT: COMBINED SOCIAL SCIENCE (Economics and Political Science)

    METHODS OF ECONOMICS ANALYSIS
    Economics analysis is the study of economic systems which involves assessing or examining topics or issues from an economist’s perspective. It may also be a study of a production process or an industry.
    There are basically two types of economic analysis,which are;
    Inductive and Deductive methods

    INDUCTIVE METHOD
    Inductive method is a type of reasoning that involves drawing a general conclusion from a setof specific observations.It also involves widening specific premises out into broader generalizations and theories. It is sometimes called a “bottom up”
    In inductive method, we begin with specific observations and measures, begin to detect patterns and regularities, formulate some tentative hypotheses that we can explor, and finally end up developing some general conclusions or theories.

    DEDUCTIVE METHOD
    The Deductive method of reasoning is a method by which concrete applications or consequences are deducted from general principles or theorems are deduced from definitions and postulates. The Deductive method works from the more general to the more specific. Sometimes, it is called the” top-down” approay. This method can then be narrowed down into more specific hypotheses that we can test, and narrow down even further when we collect observations to address the hypotheses. This ultimately leads us to be able to test the hypotheses with specific data.

    These two methods of reasoning have a very different”feel” to them when you’re conducting research.
    INDUCTIVE REASONING, by its very nature,is more open-ended and exploratory, especially at the beginning.
    DEDUCTIVE METHOD is more narrow in nature and is concerned with testing or confirming hypotheses.

    Reply
  280. Avatar Mordi chidera Reginald says:
    4 years ago

    The Methods Of Economic Analysis
    Mordi chidera Reginald
    20763680HA
    chideramordi43@gmail.com
    Economic Analysis has to do various processes aimed at studying observable phenomenon and formulation of laws and generalisations from it.
    Basically, there are two methods of economic analysis, which are deductive and (
    Inductive economic analysis.
    Deductive method is an approach that entails moving from the general observable phenomenons to a specific conclusion about an economic phenomenon.The steps involved in using this approach in economic analysis is first of all, identifying the problem that needs to be studied, making postulates or premises on which hypothesis(statement subject to verification) are built upon and finally the hypothesis is tested to determine if it is in consonance with actual facts in the economy.
    Inductive method drives economic analysis on the basis of experience and observations.in this approach data are collected about a specific phenomenon and from there efforts are made to arrive at a general conclusion.The steps in this approach involves collecting data about variables such as price, unemployment, income, consumption interest rate and so on and studying there functional relationships.After these prediction(s)is (are) made and if the predictions are in consonance then it is accepted as a theory.
    In conclusion both methods are highly imperative in carrying out a good analysis of economic phenomenon.deductive approach formulate hypothesis and inductive method uses it empirical nature of statistics and econometrics to verify its consistency with actual facts.

    Reply
  281. Avatar Obinna Asogwa .public administration and local government .reg no 20688666IA.matric no:2020/243137. says:
    4 years ago

    1:The basics method of analysis by Economist are as follow. Deductive method and Inductive method.
    The Deductive is also called abstract, analytical and a priori method and represents an abstract approach to the decision derivation of Economic generalisations and theories

    The principal steps in the process of deriving economic generalisation through deductive logic are as follow:
    (A) perception of the problem to the enquired ,defining precisely the technical terms and making appropriate assumptions often called postulates or premises.
    (B) deducing hypotheses that is deriving conclusions from the premises through the process of logical reasoning.
    (C) testing of hypothesis deduced.

    Inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations in this method detailed data are collected, with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected But it is with mentioning that the number of observations has to be large if it can yield a valid economic generalisation.one should not generalise on the basis of a very few observations.there are three ways which can be used for driving economic principles and theories .And they are as follow:
    A) Experimentation
    B)observations
    C statistical or economic method.

    Reply
  282. Avatar Umeh chukwuebuka valentine says:
    4 years ago

    Name: umeh chukwuebuka Valentine
    Jamb reg num: 20171227EF
    Email: Valentinemighty35@gmail.com
    Faculty: vocational and technical education
    Department: business education.

    1) inductive method is also known as empirical method was adopted by the historical School of Economist. Inductive method can be defined as the process of reasoning from particular fact to general principal. This method derives economic generalization on the basis of
    * Examination: This is taken a detailed inspection of the data that will be carried out.
    * Observation:The action or process of closely observing the data you are about to study and it include both primary and secondary observation.
    * Statistical method: this is when collection organisation interpretation and presentation of data is being done to show the result found in the cause of action.
    2) deductive method: in deductive method of Economics analysis we proceed from the general to the particular.This is also known as and hypothetical method for some of the believe may not agree with the actual facts but very near actual fact which may be used as premise for starting reasons and drawing conclusions.It help to better understand consumers and business behaviour when making any Economic decisions.

    Reply
  283. Avatar Chidiebere Favour Chiwemmeri says:
    4 years ago

    Chidiebere Favour Chiwemmeri.
    2020/242578.
    chidifavor2004@gmail.com
    Economics Department.
    Online Discussion Quiz.
    Eco 101.
    Question: Methods of Economics Analysis.
    Answer: In Economics broadly, we make use of two methods of logic to establish a truth(generalization):
    1. Deductive Method and,
    2. Inductive Method.
    Deductive Method.
    Also known as abstract method or analytical method is based on priori reasoning and conclusions that are drawn from fundamental assumptions. This method moves from general assumptions to the specific application.
    In using deductive method to derive generalization in economics, below are the steps to take:
    A. Identification of the problem to be studied.
    B. Definition of technical terms.
    C. Formulation of hypothesis.
    D. Collection, organization and analysis of data.
    E. Testing of the hypothesis.
    F. Formulation of conclusions.
    In identification, the economist in charge of the research has to first of all pin point the problem he or she wants to research on or study. Afterwards a proper definition of terms has to follow. The technical terms to be used while conducting the research has to be clearly defined. The economist also has to make valid and realistic assumptions. That is to say that, the assumptions must be logical and uncounterable in all angles. He or she has to formulate the hypothesis of the research which is an intelligent guess. Then after, collection of data and analysis of data to make up the hypothesis takes place. The hypothesis is later tested and verified. However, this hypothesis is also prone to certain modifications at the researcher’s will. After the hypothesis has been tested and fault proven, it is nevertheless declared as a generalization.
    Deductive method of economic analysis, is beneficial as it doesnot involve the use of any complex software analysis hence, saves time and minimises cost. It also brings clarity and exactness in economic analysis because of the use of mathematical techniques.
    However, logical fallacy is a challenge to deductive method because it starts from assumptions. And if the assumptions happen to be logically flawed, the whole process becomes faulty and would give wrong conclusions.
    Inductive Method.
    Also known as empirical method. This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Also in inductive method, we make use of econometric packages such as E-views and STATA. And it moves from specific observations to generalization.
    Inductive method is more realistic and reliable since it is based on facts. The process of inductive method is also more scientific because of the use of statistical method and experimentation rather than when one is dependent on ones logic and reasoning. Also, because of the dynamism and change of the economic environment, relying upon a more scientific method always help reach a logical conclusion.
    Inductive method of economic analysis is however, time consuming and expensive since it runs with complex software packages. Also in this case, data varies from person to person making its collection more tasking and insufficiency of data could lead to faulty conclusions.

    Reply
  284. Avatar Ugwoke Nmesoma Favour says:
    4 years ago

    Name: Ugwoke Nmesoma Favour
    Department: Public administration and Local govt
    Faculty: Social Science
    Reg no:2020/243271
    Email: ugwokefavour22@gmail.com
    THE METHOD OF ECONOMICS
    ANALYSIS
    There two methods of economics analysis and they are as follows:

    1) Deductives method:These are various methods used by an economist in the experiment that deals with an inanimate things .It also involves the process of reasoning from certain laws or principle, which are assumed to be true to the analysis of fact. According to BASCON described deductive method as a “descending process” in which we proceed from a general principles to its consequence .

    2) Inductive method: This is a methods used by economist in observation of fact through collection of detailed data and the use of stastical methods to arrive at the economics
    generalisation which establishing the relationship between facts that are being increasingly made.

    Reply
  285. Avatar Nnamani Chidera Jane says:
    4 years ago

    Name: Nnamani Chidera Jane
    Reg no: 20176311IF
    Department: PALG
    Email: janechidera097@gmail.com
    Methods of Economic Analysis

    Economic analysis involves the formulation of laws and generalizations through two methods deductive and inductive.

    1. Deductive method: it means reasoning or inference from the general to the particular or from the universal to the individual. The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods.

    2. Inductive method: Induction “is the process of reasoning from a part to the whole, from particulars to generals or from the individual to the universal.” Bacon described it as “an ascending process” in which facts are collected, arranged and then general conclusions are drawn.

    Reply
  286. Avatar Mordi chidera Reginald says:
    4 years ago

    The Methods Of Economic Analysis
    Mordi chidera Reginald
    20763680HA
    chideramordi43@gmail.com
    Economic Analysis has to do various processes aimed at studying observable phenomenon and formulation of laws and generalisations from it.
    Basically, there are two methods of economic analysis, which are deductive and inductive (empirical) economic analysis.
    Deductive method is an approach that entails moving from the general observable phenomenons to a specific conclusion about an economic phenomenon.The steps involved in using this approach in economic analysis is first of all, identifying the problem that needs to be studied, making postulates or premises on which hypothesis(statement subject to verification) are built upon and finally the hypothesis is tested to determine if it is in consonance with actual facts in the economy.
    Inductive method drives economic analysis on the basis of experience and observations.in this approach data are collected about a specific phenomenon and from there efforts are made to arrive at a general conclusion.The steps in this approach involves collecting data about variables such as price, unemployment, income, consumption interest rate and so on and studying there functional relationships.After these prediction(s)is (are) made and if the predictions are in consonance then it is accepted as a theory.
    In conclusion both methods are highly imperative in carrying out a good analysis of economic phenomenon.deductive approach formulate hypothesis and inductive method uses it empirical nature of statistics and econometrics to verify its consistency with actual facts.

    Reply
  287. Avatar Emedoro Deborah chinonso (21346629CA) says:
    4 years ago

    The basic method of analysis used by economist are:
    INDUCTIVE AND
    DEDUCTIVE METHOD.
    In economics the term generalisation is used and it can be turned into THEORY.
    Induction is the process which we arrive at theory on the basis of particular observed fact.We use ECONOMETRIC PACKAGES in this method and It contains the E-VIEWS and SNATA.
    The inductive method is realistic because it is based on fact and explains econometric term as they actually are. It flows from the the facts to theory.it involves gathering of information
    THE DEDUCTIVE METHOD:
    This is also known as Hypothetical method. This involves the procedure of heirarchy.it is proceeded from the general to the particular and it is called hypothetical method because some of the assumption may not correspond to actual fact.
    Deductive method have four steps namely
    *Selecting the problem
    *Defining the problem
    *Formulating hypothesis v
    *Verifying the hypothesis
    The deductive method is simple because it is analytical and it involves method of intellectual experiment. Assumption are also made in the methods and the assumption made is called POSTULATE

    Reply
  288. Avatar Obi Cherish Chioma, 2019/241764 says:
    4 years ago

    The two methods of analysis used by economist are;
    1. Deductive method
    2. Inductive method
    DEDUCTIVE METHOD
    Deductive method is also known as priori reasoning. In this kind of reasoning, we go from general to specific. We from unchallenged elementary facts and then arrive at conclusion which is build a hypothesis or theory. Using logical analysis or our own analytical abilities.
    There are three stages in deductive reasoning, which are;
    1. Observation of task/ issue
    2. Making the hypothesis
    3. Testing the hypothesis using more observation etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws . The advantage is that it is a simple method, doesn’t involve the use of any complex software analysis. While the disadvantage in this method of reasoning is that we start from assumption, if the assumption happen to be logically flawed, the whole process becomes faulty and would give wrong conclusions.
    INDUCTIVE METHOD
    Inductive method flows from facts to theory. We first collect information and facts and then move towards providing evidence using economic theory or facts. This method formulates principle using the sub-method- observation, experimentation, statistical methods.
    The advantage of inductive method is that, since it is based on facts, it is more realistic and reliable. Using statistical methods and experimentation makes the process more scientific, thus more acceptable universally rather than just depending on your own reasoning and logic. While the disadvantage is that it is a time consuming process and very expensive as well as abd the collection of data is not as easy job and varies from person to person

    Reply
  289. Avatar Nwachukwu chinaza Maryann says:
    4 years ago

    THE BASIC METHOD OF ANALYSIS USED BY ECONOMISTS . . An economy theory derives laws or generalization through two methods.
    1.Deductive method. 2.inductive method.
    Deductive method of economic analysis- the deductive method is also called analytical, abstract, or prior method .it represent an abstract approach of economic generalization and theories. Deductive method may involved steps which aids in deriving economic generalization. They are perception of the problem to be inquired into that is the analyst must understand ,interpret and be able to have a clear idea of the problems he is to handle..
    Secondly the next step is to define clearly the technical term used in analysis ,further assumption made for a theory should also be precise. The third step in deriving generalization is making hypothesis from the assumption taken.
    Finally before establishing laws or generalization, hypothesis should be verified through direct observation and through statistical method. Merits of Deductive methods– it is time consuming and brings exactness and clarity in economic analysis, it also help in deriving economic theories.. Shortcomings or demerits of deductive methods-it is highly demerited because it requires a great deal of care to avoid bad logic and faulty economic reasoning and other highly unrealistic assumptions which may not have operational significance.
    INDUCTIVE METHOD. This is also called the empirical method which derives economic generalization on the basis of experience and observation..the observation has to be large to yield a valid economic generalization. There are three steps which can be used for deriving economic principle and theories they are 1.experimentation
    2.observation
    3.statistical method.
    Main step involved in the application of inductive method are observation that is a collection of data then making of hypothesis followed by generalization and lastly verification.
    Inductive method is based on facts, that is the method is realistic, further more inductive method is more reliable and is also dynamic and mosty helps in future investigation. These are merits of inductive method.
    It shortcomings or demerit that weakens the method are when conclusion are drawn from insufficient data the generalization obtained may be faulty.
    Secondly it is time consuming and also the method or source of collection of data differs from investigators to investigators.
    In conclusion deductive and inductive method have both weaknesses and we cannot rely exclusively on any of them but they are highly needed for scientific thought and analysis.

    Reply
  290. Avatar Nwachukwu Chidiogo says:
    4 years ago

    NAME : Nwachukwu Chidiogo
    REG NO : 20393122HF
    EMAIL : chychyogo@gmail.Com

    Deductive method
    Inductive method
    Deductive method: This method can also be referred to as abstract , analytical and priori methods and represent an abstract approach to the derivation of the theories and generalization of economy. Deductive method involves;
    Selecting the problem .
    The formulation of assumption on the basis of which the problem is to be explored.
    The formulation of hypothesis through the process of logical reasoning.
    Verifying the hypothesis.

    Inductive method : This is the investigation, observation, arrangement, classification and interpretation of facts and empirical testing of facts used to formulate laws and finally established principles, proposition, generalization theories and laws used for the analysis, prediction and forecasting of economic problems and solutions.

    Reply
  291. Avatar ODOH MMESOMA JESSICA says:
    4 years ago

    NAME: ODOH MMESOMA JESSICA
    JAMB NUMBER: 22001056GF
    DEPARTMENT: COMBINED SOCIAL SCIENCES (ECONOMICS/PHILOSOPHY)
    E-mail: odohmmesoma2@gail.com
    Methods Of Economic Analysis
    Economic analysis are of two types, they are;
    (1)DEDUCTIVE METHODS; This involves testing an existing theory. It starts from the general over view and down to a particular conclusion. However, theories gotten from deductive reasoning is tested through research and the theory is either accepted, rejected or revised.
    The processes of deductive reasoning includes;
    (i) Problem selection
    (ii) Formulation of assumptions
    (iii) Formulation of hypothesis
    (iv) Verifying the hypothesis

    (2) INDUCTIVE METHOD: This involves developing of a theory. It starts from a specific observation to a broad generalization.
    Processes involved are;
    (i) Problem identification
    (ii) Collection of data and analysing of data by using appropriate statistical techniques
    (iii) Observation of data
    (iv) Generalization

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  292. Avatar UGWUOKE CHIKWADO says:
    4 years ago

    NAME: UGWUOKE CHIKWADO
    REG NO: 2020/242634
    EMAIL: ugwuokechikwado599@gmail.com
    The inductive and deductive methods are the two basic methods of economic analysis. The deductive method of economic analysis deals with the logic of reasoning from general to specific. It analyse economic variables through various steps such as; Identification of an economic problem, description of terminologies to be employed in problem analysis and formulation of premise, and development and testing of hypothesis in order to make generalization. The inductive method deals with a pattern of reasoning which logically flows from specific to general. It experiments and empirically tests economic hypothesis developed through deductive means using statistical or econometrics method to in order to ascertain the consistency of facts in such theory or hypothesis. This sets the validity for deductive conclusions.

    Reply
  293. Avatar Obetta Cynthia Chidimma says:
    4 years ago

    METHODS OF ECONOMICS ANALYSIS
    DEDUCTIVE AND INDUCTIVE METHODS
    DEDUCTIVE METHOD is also known as the Analytical, Abstract or Prior method. The deductive method consist in dreving conclusions from general truth, takes few general principle and applied conclusions.
    For instance if we accepts the general proposition that man is entirely motivated by self_interest. In applying to the deductive method of economic analysis we proceed from general to particular.
    In deductive method of economic analysis we proceed from general to particular. This is also known as Hypothetical method for some of the assumptions may not correspond to be used as premise to starting, reasoning and drawing conclusions.
    STEPS OF DEDUCTIVE METHOD OF ECONOMICS ANALYSIS
    1,Perception of problem to be inquired into
    2, Definition of terms
    3,Deducing hypothesis from the assumptions
    4, Testing of hypothesis
    MERIT
    1, The method is near to reality. It is less time consuming and less expensive
    2, The method is simple because it is Analytical
    DEMERIT
    INDUCTIVE METHOD OF ECONOMICS ANALYSIS
    It also known as Empirical method was adopted by the Historical school of Economists . It involves the process of reasoning from particular facts to general principles.
    This method derives economic generalizations on the basis of
    I,Experimentations
    ii, Observations and statistical methods
    STEPS OF INDUCTIVE METHOD
    I, It is based on facts as such the method is realistic
    ii, it is dynamic, the changing economic phenomenon are analyzed and on the basis of collected data conclusions
    III, it also help help in future investigation
    Therefore Deductive and Inductive methods are both need for scientific thought as the right and left foot are both needed for walking.

    Reply
  294. Avatar Davies-Ogbodo Nmachi says:
    4 years ago

    Name: Davies-Ogbodo Nmachi
    Reg no: 2020/241320
    Email: daviesogbodocatherine@gmail.com
    Department: Statistics

    They are two basic methods used by economist in analysis, they are the deductive and the inductive method.
    The Deductive method is also called the abstract or analytical method. It is a method of analysis that moves from the general to the particular, that is in this method a general assumption on a topic or happening is first brought forth then observations and findings on the topic is established and then gradually conclusions are gotten from the observations and findings.
    Therefore in this method as the name implies economist deduce conclusions and new theories from an already established assumption by observing and testing on the basis of the assumption.

    The inductive method on the other hand goes from the particular to the general. This means that it basically follows the normal order of scientific method most times because in this method an economist first begins with basic observations, then hypothesis and then testing or experiment.
    So most times in this method there are no prior assumptions it is a new idea or observation that is collected then and experimented on to arrive at a conclusion or possible theory.

    Reply
  295. Avatar Nnaji Gift Daberechi says:
    4 years ago

    Name: Nnaji Gift Daberechi
    Dept:pure and Industrial chemistry
    Reg no:2019/247798
    Email: nnajigift903@gmail.com
    Course title:Eco101
    Economics adopts two important methods in its investigations and formulation of laws and principles. They are:
    1.Deductive Methods and
    2.Inductive Methods.
    Deductive method also know as analytical abstract a priori method. Here we start with certain formal data and assumptions. Then by logical reasoning we arrive at certain conclusions. We start with undisputed fundamental facts and after adding some assumptions we build up a theory. For instance, it is assumed that businessmen aim at maximum profit. It follows from this that businessmen buy the materials in the cheapest market and sell it in the dearest market.
    In Deductive method of Economic Analysis we proceed from the general to the particular. This is also known as an hypothetical method for some of the assumptions may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions. In economics we start with very simple premises and work up gradually or more and more complex hypotheses
    A complete form of deductive method consists of three stages, viz,
    a.observation;
    b.deductive reasoning and
    c.instance and testing by means of further observations.
    Deductive reasoning provides us with hypotheses or generalizations. If the hypotheses are tested and verified with relevance to facts, we have valid economic laws.
    Inductive method of economics analysis :In this method, economists proceed from a practical angle to problems of science to reduce the gulf between theory and practice. Induction is done by two forms, viz. experimentation and statistical form. Facts are collected first, arranged and conclusions are drawn. Then these general conclusions are further verified with reference to actual facts.
    The inductive method is generally associated with the statistical form of inductions. The statistical approach has a larger field in economic investigations than the method of experimentation. Further, the method of statistical induction is indispensable for the formulation of economic policy. Malthus presented his famous theory of population only after studying the facts of population in various countries; He then used statistics to support his theory. Similarly Engel, the German statistician employed inductive method and used statistics to formulate his law of consumption.

    Reply
  296. Avatar Ozioko Nneka Cynthia says:
    4 years ago

    Name-Ozioko Nneka Cynthia
    Dept-combined social studies(Economics & Sociology and anthropology)
    Reg Num-21488077ff
    Email-oziokocynthis2000@gmail.com

    ANSWER
    We have two methods
    of economics analysis which are;
    Deductive method and
    Inductive method

    DEDUCTIVE METHOD
    This is also called a priori reasoning.We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions using logical analysis or our own analytical abilities. In this kind of reasoning,The stages in deductive method are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    *Advantages of Deductive Method
    It is a simple method,doesn’t involve the use of any complex software analysis. only simple deductive logic is required,
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance

    *Disadvantages of Deductive Method
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions
    INDUCTIVE METHOD
    This type of reasoning flows from facts to theory.First,we collect information and facts and then move towards providing evidence using economic theory and facts.This method formulates principles using the sub-methods- Observations, Experimentations and Statistical.The stages in this method are:
    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    *Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic

    *Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  297. Avatar Eze Emmanuel says:
    4 years ago

    Eze Emmanuel
    21316393FF
    eeze0090@gmail.com

    DEDUCTIVE METHOD
    This method can also be called prior reasoning. We begin from an unopposed assumption and then arrive at conclusions using logical analysis.
    In this method, we have processes for it;
    * Observation of a task
    * Making the hypothesis
    * Testing the hypothesis using more observations
    This particular method gives us a hypothesis and if this hypothesis gets verified we obtain what we call economic generalization/law
    MERITS
    * It doesn’t involve any complex software analysis
    * This method is important to economist’s as it centers on economic reasoning which is of paramount relevance
    DEMERITS
    * In this method we start from assumptions, this in any instance that the assumption is wrong,the whole process becomes wrong

    INDUCTIVE METHOD
    In this method we flow from facts to theory. We first collect facts, then we move towards providing proof using economic theory and facts
    The stages in tis method are as follows;
    *Observation
    * Formulation of a hypothesis
    * Generalizing principles
    * Verifying against actual facts
    MERITS
    * Its more reliable since it’s based on facts
    * Using statistical methods makes the process more scientific and consequently more universally acceptable
    DEMERITS
    * if the data used is insufficient and faulty, it would lead to faulty conclusions
    * The process is very time consuming
    * Collection of data is a difficult task and it varies from person to person.

    Reply
  298. Avatar Ugwuanyi Ogechi Esther,2019/246551 says:
    4 years ago

    Ugwuanyi Ogechi Esther,2019/246551

    ugwuanyijudith24@gmail.com

    Website: www. estibaby. simplesite. com

    Pure and Industrial chemistry

    There are two basic methods of economic analysis which are:
    1. Inductive economic analysis.
    2. Deductive economic analysis.

    In the deductive analysis, series of steps are taken into consideration in the course of the analysis. They are:
    a) Problem perception: This is the first step under the deductive analysis which involves more of problem finding in the economic analysis before other steps are considered.
    b) Technical test: Here, the exact testing of the problem using technical or standard means comes into play as per finding out the solution to the problem.
    c) Postulates: These are assumptions made and must be realistic in order to suit in properly with the problem at hand.
    d) Hypothesis testing: Involves the screening of those postulates made as to know it’s final result to the problem.

    On the other hand, the inductive economic analysis method deals with it’s problems using econometric packages like data (which could be primary or secondary) for running the regression analysis.

    In summary, the two methods of economic analysis are of the same purpose but varies in their methods of application.

    Reply
  299. Avatar Onyeoma Cynthia Amarachi says:
    4 years ago

    Eco121
    Name:- Onyeoma Cynthia Amarachi
    Reg No:- 2019/241511
    Department:- Pure and Industrial chemistry
    Topic:- Types of accounting.
    The following are the types of accounting and their brief explanations.
    1)FINANCIAL ACCOUNTING
    Financial accounting is the process of compiling financial report for external use.

    (2) MANAGERIAL ACCOUNTING
    This type of accounting documents , monitors and assist in the financial planning of an organization.This is typically meant for internal stakeholders rather than external.

    (3) COST ACCOUNTING
    This is a sub category of managerial accounting, cost accountants are responsible for documenting,presenting and reviewing manufacturing cost of a company.

    (4) AUDITING
    This is divided into two parts; namely the internal and the external auditing
    •The Internal auditing _ determines the effectiveness of the internal accounting process he or she reviews the employee department, responsibility management, policies and approval of procedures on related projects.
    •External Auditing _ is the action of a company providing a financial statement to a third-party for financial feedback.

    (5) TAX ACCOUNTING
    Tax accounting helps business to stay in compliance with annual tax codes which they file each year.

    (6) ACCOUNTING INFORMATION SYSTEM (AIS)
    This manage the improvement of successful accounting procedures,they make decisions in coalition with Industrial training department to instill continuity with the technological process.

    (7) FIDUCIARY ACCOUNTING
    Fiduciary accounting is the procedure of trusting one individual to handle financial accounts, they are obligated to serve on behalf of the clients,for account tied to be real estate,trust funds etc…

    (8) FORENSIC ACCOUNTING
    Forensic accounting requires accountants to reconfigure a company’s financial information when some information is Missing or not available to review.

    (9) PUBLIC ACCOUNTING
    Public accounting refers to a business that provides accounting advice to clients based on their needs.
    Public accounting can work in auditing, assist with tax returns and consult on procedures tailored to the installation of technology

    (10) GOVERNMENT ACCOUNTING
    This accountants manages the financial planning and allocation of resources to departments within local ,state and federal government.

    Reply
  300. Avatar Onyeachonam Chinenye J says:
    4 years ago

    Name: Onyeachonam Chinenye Josephine
    Department: pure and industrial chemistry
    Faculty: physical science
    Reg no: 2019/250236

    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.
    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  301. Avatar Ugwuanyi Ogechi Esther,2019/246551 says:
    4 years ago

    Ugwuanyi Ogechi Esther,2019/246551

    ugwuanyijudith24@gmail.com

    Website: www. estibaby. simplesite. com

    Pure and Industrial chemistry

    Reply
  302. Avatar Maduakore Loveth Onyinyechi says:
    4 years ago

    Maduakore Loveth Onyinyechi
    Pure and Industrial Chemistry Dept
    2019/249050

    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).
    Merits of Deductive Method:
    The main merits of deductive method are as under:
    (i) This method is near to reality. It is less time consuming and less expensive.
    (ii) The use of mathematical techniques in deducing theories of economics brings exactness and clarity in economic analysis.
    (iii) There being limited scope of experimentation, the method helps in deriving economic theories.
    (iv) The method is simple because it is analytical.
    Demerits of Deductive Method:
    It is true that deductive method is simple and precise, underlying assumptions are valid.
    (i) The deductive method is simple and precise only if the underlying assumptions are valid. More often the assumptions turn out to be based on half truths or have no relation to reality. The conclusions drawn from such assumptions will, therefore, be misleading.
    (ii) Professor Learner describes the deductive method as ‘armchair’ analysis. According to him, the premises from which inferences are drawn may not
    hold good at all times, and places. As such deductive reasoning is not applicable universally.
    (iii) The deductive method is highly abstract. It require; a great deal of care to avoid bad logic or faulty economic reasoning.
    As the deductive method employed by the classical and neo-classical economists led to many facile conclusions due to reliance on imperfect and incorrect assumptions, therefore, under the German Historical School of economists, a sharp reaction began against this method. They advocated a more realistic method for economic analysis known as inductive method.
    (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) Experimentations (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.
    Merits of Inductive Method:

    (i) It is based on facts as such the method is realistic.
    (ii) In order to test the economic principles, method makes statistical techniques. The inductive method is, therefore, more reliable.
    (iii) Inductive method is dynamic. The changing economic phenomenon are analyzed and on the basis of collected data, conclusions and solutions are drawn from them.

    (iv) Induction method also helps in future investigations.
    Demerits of Inductive Method:
    The main weaknesses of this method are as under:
    (i) If conclusions drawn from insufficient data, the generalizations obtained may be faulty.
    (ii) The collection of data itself is not an easy task. The sources and methods employed in the collection of data differ from investigator to investigator. The results, therefore, may differ even with the same problem.
    (iii) The inductive method is time-consuming and expensive.

    Conclusion:
    The above analysis reveals that both the methods have weaknesses. We cannot rely exclusively on any one of them. Modern economists are of the view that both these methods are complimentary. They partners and not rivals. Alfred Marshall has rightly remarked:
    “Inductive and Deductive methods are both needed for scientific thought, as the right and left foot are both needed for walking”.

    Reply
  303. Avatar Itohowo Emmason Akai says:
    4 years ago

    Name: Itohowo Emmason Akai. Reg. No. 20679208GA. Dept.: Social Science Education (Education Economics). Email: tohowoakai999@gmail.com course title. Eco 101. Assignment: Methods of Economic Analysis. Economics as a subject or course has multifarious definitions, and its base on the worldview or perception of the that defines it. Here a definition of a classical Economist is considered – called Alfred Marshal. He considers “Economics as a study of mankind in the ordinary business if life”. Deductive Method of Reasoning: It means the world view of an Economist from the summation to specific or general to particular. It also entails the manner of reasoning from certain laws or principles which are likely to be true to the analysis of facts, with inferences been drawn. For an Economist to arrive at the conclusion on a research in this method, some steps need to be taken into consideration, such as: (1) selection of problem (2) Formulation of assumption on the basis of which the problem is to be explored or investigated (3) Formulation of hypothesis through the process of logical thinking (4)By verifying the hypothesis.
    Inductive Method of Reasoning: It is the process of viewing things from the beginning to the whole or from particular to general. Is like micro – macro. It has four processes:(1) Selection of problems (2) Collection of information (3)Observation of data(4) Generalization and conclusion

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  304. Avatar Orji Davidkenechukwu says:
    4 years ago

    Name: Orji David kenechukwu
    Reg no: 2020/242635
    Department : Economics 100l
    E-mail: davidorji2002@gmail.com

    Methods of of Economic analysis includes

    Deductive method
    Inductive method

    Deductive method : can also be called abstract ,analytical and a prior method and it represents an abstract approach to the derivation of economic generalization and theories
    The principal steps in the process of deriving economic generalization includes
    (1) Perception of the problem : In any scientific enquiry, the theorist must have a clear idea of the problem to be enquired into.
    (2) Defining precisely the technical terms and making appropriate assumption, often called premises : The theorist is to define precisely the various technical terms to be used in the analysis and to state clearly the assumption he makes to derive generalization.
    (3) Deducing of hypothesis : A hypothesis describes relationships between factors affecting a phenomenon ; so therefore through logical process hypothesis is deduced from the assumption made .
    (4) Testing of hypothesis
    Hypothesis obtained have to be verified before they are established as a method of generalization of economy
    Merits
    (1) it is leas time consuming and less expensive
    (2) The use of mathematical techniques in deducing theories brings exactness and clarity in economic analysis
    Demerits
    (1) The deductive method is highly abstract it requires a great deal to care to avoid bad logic or faulty economic reasoning .

    Inductive Method
    The inductive method which is also called empirical method was adopted by the historical school of Economist . it involves the process of reasoning from particular facts to general principle
    The method derives economic generalization on the basis of
    (1) Experiments
    (2) Observation
    (3) Statistical methods .
    In this method data is collected about a certain phenomenon . These are systematically arranged and the general conclusions are drawn from them
    For example we observe 100 persons in the market . We find that nearly 95 persons buy from the cheapest shops. Out of the 5 which remains 4 persons buy local products even at a higher rate just to patronize their own products .While fifth person didn’t buy .From observation we can easily draw conclusion that people like to buy from a cheaper shop unless they are want to patronize their own products
    Steps involved in Inductive method includes
    (1) Observation
    (2) Formation of hypothesis
    (3) Generalization
    (4) Verification
    Merits of inductive method includes
    (1) Inductive method helps in future investigation
    (2) It is based on facts as such the method is realistic
    Demerits
    (1) It is time consuming and expensive to operate
    (2) If conclusions are drawn from insufficient data, the generalization obtained may be faulty .

    Reply
  305. Avatar Emeribe ogochukwu Faith says:
    4 years ago

    Name: Emeribe ogochukwu Faith
    Reg no:2020/243140
    Dept: public administration
    Faculty: social science
    There are basically two methods of Economics analysis. We have the inductive and deductive method.
    Deductive:
    The deductive which is also known as abstract method is used by economist for analysis. In deductive method we hv steps to be considered. First; perception of the problem: The economist have to perceive the problem, observe the problem he/ she wants to study. Example; problem of cassava,why cassava is not given attention. The economist present it in such a way people sees it as a problem.
    Second;Explaning of technique terms and making assumptions:The economist is expected to explain why supply is and demand is, what cassava is cause some doesn’t know what cassava is.
    After Explaning the technique terms, and base on the explanation, the economist makes an assumption like why people in Nsuka don’t grow cassava. The economist makes realistic assumptions that is verifiable and that will give direction .After the assumption, we have Hypotheses which is done,after then the result.
    Inductive:
    The inductive method is quite similar to the deductive method. In inductive method,we use what we call Econometric packages to run our experiment . Example;if Mr A hss a good trade business and he is very successful and realizes that the government has banned his business and which makes Me A out of the market because of the statement by the government.
    In conclusion, inductive method goes with the state of the government.

    Reply
  306. Avatar Ezeuba Gloria Chinecherem says:
    4 years ago

    Ezeuba Gloria Chinecherem
    29771704CA
    glorianeche8@gmail.com

    Generalisations in economics have been derived in two ways:

    (1) Deductive Method.
    (2) Induc­tive Method.

    (1) Deductive Method; It is also known as Prior method. The deductive method consists in deriving conclusions from general truths, takes few general principles and applies them draw conclusions. We start with undisputed fundamental/facts and after adding some assumptions we build up a theory.
    In deductive method of Economics analysis we proceed from the general to the particular. This is also known as an hypothetical method for some of the assumptions may not correspond to actual fact, but very near actual facts which maybe used as premise for starting, reasoning and drawing conclusions.
    For instance if we accept the general proposition that men is entirely motivated by self interest.

    (2) Inductive method of economics is know as empirical method and was adopted by the historical school of Economists. It involves process from a practical angle to problem of science to reduce the gulf between theory and practice. This method is generally associated with the statistical form of inductions.
    This method derives economics generalization on the basic of (i) Experimentations (ii) Observation (iii) Statistical methods. This method collects data at a certain economic phenomenon, these are systematically arranged and the general conclusions are drawn from them.

    Reply
  307. Avatar Akpo Chinecherem Joachim says:
    4 years ago

    Name: Akpo Chinecherem Joachim
    Reg No: 2019/241907
    Dept: Pure and Industrial chemistry
    Email: joachimakpo@gmail.com

    Methods of economics analysis
    Economic follows a pattern in gathering it information like as pure sciences with the only difference as that economic studies human, economic, political behaviour.
    We have two methods
    Deductive method and
    Inductive method

    Deduction Means reasoning or inference from the general to the particular or from the universal to the individual. The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of facts.

    Then inferences are drawn which are verified against observed facts. Bacon described deduction as a “descending process” in which we proceed from a general principle to its consequences. Mill characterised it as a priori method, while others called it abstract and analytical.

    (1) Selecting the problem:
    The problem which an investigator selects for enquiry must be stated clearly. It may be very wide like poverty, unemployment, inflation, etc. or narrow relating to an industry. The narrower the problem the better it would be to conduct the enquiry.

    (2) Formulating Assumptions:
    The next step in deduction is the framing of assumptions which are the basis of hypothesis. To be fruitful for enquiry, the assumption must be general. In any economic enquiry, more than one set of assumptions should be made in terms of which a hypothesis may be formulated.

    (3) Formulating Hypothesis:
    The next step is to formulate a hypothesis on the basis of logical reasoning whereby conclusions are drawn from the propositions. This is done in two ways: First, through logical deduction. If and because relationships (p) and (q) all exist, then this necessarily implies that relationship (r) existsas well. Mathematics is mostly used in these methods of logical deduction.

    (4) Testing and Verifying the Hypothesis:
    The final step in the deductive method is to test and verify the hypothesis. For this purpose, economists now use statistical and econometric methods. Verification consists in confirming whether the hypothesis is in agreement with facts. A hypothesis is true or not can be verified by observation and experiment. Since economics is concerned with human behaviour, there are problems in making observation and testing a hypothesis.

    Under these conditions, the hypothesis may turn out to the wrong. In economics, most hypotheses remain unverified because of the complexity of factors involved in human behaviour which, in turn, depend upon social, political and economic factors. Moreover, controlled experiments in a laboratory are not possible in economics. So the majority of hypotheses remain untested and unverified in economics.

    Merits of Deductive Method:
    The deductive method has many advantages.
    (1) Real
    (2) Simple
    (3) Powerful

    Demerits of Deductive Method:
    1 .Unrealistic Assumption
    2. Not Universally Applicable:
    3. Incorrect Verifications
    4. Abstract Methods
    5. Static Methods
    6. Intellectually:

    The Inductive method: Bacon described it as “an ascending process” in which facts are collected, arranged and then general conclusions are drawn.

    The inductive method was employed in economics by the German Historical School which sought to develop economics wholly from historical research. The historical or inductive method expects the economist to be primarily an economic historian who should first collect material, draw gereralisations, and verify the conclusions by applying them to subsequent events. For this, it uses statistical methods. The Engel’s Law of Family Expenditure and the Malthusian Theory of Population have been derived from inductive reasoning.

    The inductive method involves the following steps:

    1. The Problem:
    In order to arrive at a generalisation concerning an economic phenomenon, the problem should be properly selected and clearly stated.
    2. Data:
    The second step is the collection, enumeration, classification and analysis of data by using appropriate statistical techniques.
    3. Observation:
    Data are used to make observation about particular facts concerning the problem.
    4. Generalisation:
    On the basis of observation, generalisation is logically derived which establishes a general truth from particular facts.

    Thus induction is the process in which we arrive at a generalisation on the basis of particular observed facts.
    The best example of inductive reasoning in economics is the formulation of the generalisation of diminishing returns. When a Scottish farmer found that in the cultivation of his field an increase in the amount of labour and capital spent on it was bringing in less than proportionate returns year after year, an economist observed such instances in the case of a number of other farms, and then he arrived at the generalisation that is known as the Law of Diminishing Returns.

    Reply
  308. Avatar AKWARANDU AMARACHI GRACE says:
    4 years ago

    NAME: AKWARANDU AMARACHI GRACE
    REG. NO. 2019/250419
    DEPARTMENT: PURE AND INDUSTRIAL CHEMISTRY
    COURSE: ECO 101
    ASSIGNMENT

    WHAT ARE THE BASIC METHODS OF ANALYSIS USED BY ECONOMISTS? BRIEFLY AND CONVINCINGLY DISCUSS EACH OF THEM.
    There are two basic methods economists use in carrying out analysis. They are the (a) Inductive method and (b) Deductive method

    1. INDUCTIVE METHOD
    The Inductive method which can also be called empirical method was adopted by the “Historical School of Economists”. In this method, economist analyze facts and move from fact to general principle. Accordingly, economic principles are enacted on the strength of observations, experimentations and statistical facts.
    Therefore, the stages in inductive process are;
    (I) Observation
    (II) Formation of hypothesis
    (III) Experimentation
    (IV) Generalization
    (V) Verification
    Data is collected about a certain economic phenomenon. These are systematically arranged and the general conclusions are drawn from them.
    For example, we observe 500 persons traveling to Lagos. We find that nearly 490 persons travel by road because it is cheaper, the remaining 10 travel by air because they have to catch up with an appointment. We can therefore conclude that people prefer to travel by land to Lagos except they have a time bound appointment to catch up with.

    Advantages of Inductive Method:
    (i) It is based on facts as such the method is realistic.
    (ii) In order to test the economic principles, this method makes use of statistics. The inductive method is, therefore, more reliable.
    (iii) Inductive method is dynamic. The changing economic phenomenon are analyzed and on the basis of collected data, conclusions and solutions are drawn from them.
    (iv) Induction method is relevant for future investigations.
    Disadvantages of Inductive Method
    (i) Since it relies on statistical evidence, bulk data is required for generalizations to be considered realistic.
    (ii)Data collection is tasking. The sources and methods employed in the collection of data differ from investigator to investigator. As a result, different results may be obtained for the same phenomenon. .
    (iii) The inductive method is time-consuming and expensive.

    (2) Deductive Method
    The deductive method also regarded as analytical, abstract or prior method. It begins with assumptions.The assumptions are analysed and a logical conclusion is reached. Usually, it starts with undisputable fundamental facts followed by assumptions, a theory is built around such facts.
    Steps of Deductive Method:

    The main steps involved in deductive method of economic analysis are as below
    (i) Identification of economic challenge. In the process of deriving economic generalizations, the analyst must have a clear and precise idea of the problem to be inquired into.
    (ii) Definition of terms. The next step is to define clearly the technical parameters considerd for the analysis. Further, assumptions made for a theory should also be precise.
    (iii) Hypotheses formulation: 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.

    Advantages of Deductive Method
    The main advantages of deductive method are as follows
    (i) This method is near to reality. It is less time consuming and less expensive.
    (ii) The use of mathematical techniques in deducing theories of economics makes it exact and reliable
    (iii)Does not require much experimentation
    (iv) The method is simple because it is analytical.

    Disadvantages of Deductive Method
    (i) The deductive method is simple and precise only if the underlying assumptions are valid. More often the assumptions turn out to be based on half truths or have no relation to reality. The conclusions drawn from such assumptions will, therefore, be misleading.
    (ii) The deductive method is highly abstract. It require; a great deal of care to avoid bad logic or faulty economic reasoning. As such, it is prone to error. Economists therefore advocate for a more reliable means of analysis.

    Reply
  309. Avatar Ogechukwu Uzoigwe says:
    4 years ago

    Methods of economics analysis?

    Economic Analysis

    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.

    Methods of Economic Analysis

    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Deductive And Inductive Methods

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  310. Avatar Okparaaluu dominion chukwumaife says:
    4 years ago

    Assignment on ECO 101
    Topic: Discussion on method of Economic analysis.
    Name:okparaaluu dominion chukwumaife
    G.mail: okparadominion@gmail.com
    Department:Economics
    Faculty: social sciences
    Reg No:20136075ff
    Method of economic analysis: we have inductive reasoning and deductive reasoning.
    NOTE: ECONOMIC ANALYSIS essentially intails the evaluation of cost and benefits.its start by ranking projects based on economic viability to aid better allocation of resources.
    1.INDUCTIVE REASONING:it flows from fact to theory,first we collect information and facts and moved toward providing evidence using economic theory and facts.this method formulates principles using the subscription methods , observations, experiments, statistical methods.
    STAGES IN INDUCTIVE REASONING
    * Observations
    * Formulation of a hypothesis
    * Generalizing principles
    * Verifying against actual facts.
    ADVANTAGES OF INDUCTIVE REASONING:
    1.it is highly practical adds realistic as it discribes things they are.
    2.Economics laws are not universal under this method but valid only under certain conditions.
    DISADVANTAGES OF INDUCTIVE REASONING
    1.Mere induction will not deliver goods unless is supplemented of deductive reasoning.without deduction , the inductive method would result in producing only a mass of unrelated and unconnected facts.
    2.Collection of facts in the inductive process is a highly complex and complicated job warranting extraordinary understanding to alienate economic from non- economic factors.

    2.DEDUCTIVE REASONING: This economic analysis is also known as priori reasoning,we start from unchallenged assumption and then arrive at conclusion, using logical analysis or analytical abilities.in this kind of reasoning we go from general to specific.
    STAGES IN DEDUCTIVE REASONING
    * Observations of a task/issue
    * Making hypothesis
    * Testing the hypothesis using more observations etc.
    ADVANTAGES OF DEDUCTIVE REASONING.
    1.It is a simple method , doesn’t involve the use of any complex software analysis,etc.only simple deductive logic required.
    2.This method is important for economist as it focuses upon economic reasoning which is of paramount importance.
    DISADVANTAGES OF DEDUCTIVE REASONING.
    1.In deduction there is too much of abstraction and economicts by means of there intellectual exercises produce only ” intellectual toys”having the little connection with reality.
    2.Deduction is based mainly on assumption which are wrong, generalization made on the basis of wrong assumption will be imperfect and invalid.all economic laws are based on too many assumptions were there are more scope for communicating errors through wrong hypothesis.

    Reply
  311. Avatar Odo Kosisochukwu Agatha says:
    4 years ago

    Name: Odo Kosisochukwu Agatha
    Dept: Pure and industrial chemistry
    Reg: 2019/242722
    Code:. Eco 101
    Email: kosisochukwuodo@yahoo.com
    Faculty: physical science
    Level: 200

    Assignment
    The basic methods of analysis used by economists are:
    1 Inductive method
    2. Deductive method
    Inductive method : This can also be called empirical method. It derives economic generalization on the basis of experiment and observation. Detailed data are collected with regard to a certain economic phenomenon and is made to reach a certain generalization which follow from observation collected. Experimentation, observation and econometric methods can be use to derive economic principle.
    2 Deductive method : This can also be called abstract, analytical and prior methods.
    The principle steps in the process of economics generalization through deductive methods are:
    i perception of the problem to be inquired
    ii Defining precisely the technical terms and making appropriate assumption
    III Deducing hypothesis that is deriving conclusion from the process of logical reasoning
    iv Testing of hypothesis deduced

    Reply
  312. Avatar OKWUDILI ESTHER MMESOMA says:
    4 years ago

    OKWUDILI ESTHER MMESOMA
    2020/242613
    estherokwudili20@gmail.com
    ECONOMICS DEPARTMENT

    Just like every other science, Economics adopted two important methods in its investigations and formulation of laws and principles. These two methods are,
    (a). Deductive method
    (b). Inductive method

    1. Deductive method: This method starts with certain formal data and assumptions, then by logical reasoning a certain conclusion is being arrived at.
    In this method of analysis we start with undisputed facts and after adding some assumptions we build up a theory. For instance, it is assumed that businessmen aims at achieving profits, it is then followed that businessmen buy their materials in the cheapest market and sell it in the dearest market.
    This analysis is also known as hypothetical method because some of the assumptions may not be true, it may not actually correspond with the actual fact. There are ways for analysing in deductive analysis. They includes,
    – Observations
    – Stating out the technical problems
    – Instances and testing by mean of further observation.
    Deductive analysis brings about hypothesis or generalizations. If the hypotheses are tested and verified with relevant facts, then we arrive into valid economic laws.

    2. Inductive method: Inductive method is also known as empirical method and was adopted by the historical school of economist. This type of economic analysis flows from facts to theory. First, we collect information and facts and then moved towards providing evidence using economic theory. This method formulates principles using observations, experiments and statistical methods. Here data is collected about a particular economic theory and then conclusions are draw. The stages in this method are;
    -observation.
    -formulation of hypothesis.
    -generalizing principles.
    -verifying against actual facts.
    Here, general principles are derived from observed fact, then the facts and figures are arranged in a systematic way from which the general principles are drawn. Econometric packages or softwares are used in this analysis, some of the packages are stata and E-views .

    Reply
  313. Avatar Nwokocha Divine Chidimma says:
    4 years ago

    Name: Nwokocha Divine Chidimma
    Department: pure and industrial chemistry
    Reg No: 2019/243369
    Email: divinec440@gmail.com

    Methods of economic analysis
    Any economic analysis involves the formulation of laws and generalizations through deductive and inductive methods.
    Deductive method
    This is also called a prior reasoning. In this kind of reasoning, we go from general to specific. The stages involved are;
    Observation of task,
    Making the hypothesis,
    Testing the hypothesis.
    This method gives us a hypothesis and if this hypothesis verified, we get general economic principles/ laws.
    Advantages
    It is a simple method, and doesn’t include the use of any complex software analysis, only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is kind of paramount importance.
    Disadvantages
    In this method of reasoning, we start from assumptions, thus, if the assumptions happen to be logically failed, the whole process becomes faulty and would give wrong conclusions.
    Inductive method.
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts.
    This method formulate using sub methods – Observation, Experimentations, Statistical methods. The stages in this method are, Observation, formulation of hypothesis, generating principle, verifying against actual facts.
    Advantages
    Since it is based on facts, it is more reclufia and reliable using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusion
    Disadvantages
    If the data used is insufficient and faulty, it would lead to faulty conclusions, making the hypothesis less reliable
    It is time consuming and thus expensive as well
    The collection of all the data is not easy and varies individually.

    Reply
  314. Avatar EKPEREKA PAULINUS UBANJI says:
    4 years ago

    NAME:UBANJI PAULINUS EKPEREKA
    DEPT:PUBLIC ADMINISTRATION AND LOCAL GOVTMENT
    REG.NO:20684978JA
    The method of economic analysis are:
    INDUCTIVE REASONING: can also be called empirical method derives economic generalizations on the basic of experience and observation moreover this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalizations which follow from the observation collected.
    This method derives economic generalizations in three basis (i).observation (ii).experimentation (iii).statistical method or econometric method.
    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.

    Steps of Inductive reasoning are:
    1.Observation.
    2.Formation of hypothesis.
    3.Generalization.
    4. Verification.
    ADVANTAGES OF INDUCTIVE REASONING
    (i) It is based on facts as such the method is realistic.
    (ii) In order to test the economic principles, method makes statistical techniques. The inductive method is,
    therefore, more reliable.
    (iii) Inductive reasoning is dynamic. The changing economic phenomenon are analyzed and on the basis of
    collected data, conclusions and solutions are drawn from them.
    (iv) Induction reasoning also helps in future investigations
    DISADVANTAGE OF INDUCTIVE REASONING
    (i) If conclusions drawn from insufficient data, the generalizations obtained may be faulty.
    (ii) The collection of data itself is not an easy task. The sources and methods employed in the collection of data
    differ from investigator to investigator. The results, therefore, may differ even with the same problem.
    (iii) The inductive reasoning is time-consuming and expensive.

    DEDUCTIVE REASONING
    This can also be called analytical, abstract or prior method, This deductive method consists in deriving conclusions from general truths, takes few general principles and applies them draw conclusions.
    for example: if we accept the general proposition that man is entirely motivated by self-interest. In applying the deductive reasoning of economic analysis this proceed from general to particular.
    DEDUCTIVE REASONING ARE:

    (1) 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.

    (2) 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.

    (3) Deducing hypothesis from the assumptions: The third step in deriving generalizations is deducing hypothesis from the assumptions taken.

    (4) 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).

    ADVANTAGES OF DEDUCTIVE REASONING:

    (1) This reasoning is near to reality. It is less time consuming and less expensive.

    (2) The use of mathematical techniques in deducing theories of economics brings exactness and clarity in economic analysis.

    (3) There being limited scope of experimentation, the method helps in deriving economic theories.

    (4) The reasoning is simple because it is analytical.

    DISADVANTAGES OF DEDUCTIVE REASONING:

    (1) The deductive reasoning is simple and precise only if the underlying assumptions are valid. More often the assumptions turn out to be based on half truths or have no relation to reality. The conclusions drawn from such assumptions will, therefore, be misleading.

    (2) Professor Learner describes the deductive method as ‘armchair’ analysis. According to him, the premises from which inferences are drawn may not
    hold good at all times, and places. As such deductive reasoning is not applicable universally.

    (3) The deductive reasoning is highly abstract. It require; a great deal of care to avoid bad logic or faulty economic reasoning.

    Reply
  315. Avatar Ijegalu Emmanuel Izuchukwu says:
    4 years ago

    Name: Ijegalu Emmanuel Izuchukwu
    Reg No: 2020/243187
    Email address: Izunwa4gud@yahoo.com
    Dept: public administration and local government.

    the methods of analysis used by Economists are inductive method and deductive methods..

    1. Inductive methods can also be called empirical methods, it was adopted by the historica school of economists, it involves the process of reasoning from particular facts to generalizations on the basics of (i)experimentations (ii) observations and (iii) statistical methods..

    2. Deductive methods
    Dediction means reasoning or inference from the general to de particular or from the universal to the individual the deductive method derives new conclucsion from fundamental assumptions or from truth established by other methods. It also involves the process of reasoning from certain laws which are assumed to be true to the analysis of facts.

    Reply
  316. Avatar Chukwu Augustina Chicheta says:
    4 years ago

    Name: Chukwu Augustina Chicheta
    Martic no: 2020/243289
    Department: Public Administration And Local Government
    Email: chukwuaugustinac98@gmail.com

    The basic method of analysis used by economist are; Deductive method and Inductive method.

    1.Deductive method is a process of reasoning from one or more statements to reach conclusions.
    In deductive method also known as abstract, analytical represent abstract approach to the derivation of economic generalization and theories.
    The steps in the process of deriving economic generalization through deductive method are:
    i. perception of the problem.
    ii. definition of technical terms and making if assumption.
    iii. deducing hypothesis through logical deduction.
    iv. verification of hypothesis.

    2. Inductive method of analysis is a method of reasoning in which statements are viewed as supplying some evidence, but not full assurance of the truth of the conclusion.
    In this method of reasoning, one’s experiences and observations, including what is learned from others, are synthesized to come up with a general truth.
    The followings are the steps in developing economic theories through inductive method:
    i. Identifying the problem.
    ii. defining technical terms and variables related to the problem.
    iii. Collection of data.
    iv. construction of economic theories.

    Reply
  317. Avatar Obidinma Samuel Somtochukwu says:
    4 years ago

    1.The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of facts. Then inferences are drawn which are verified against observed facts.
    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.An inductive approach involves the learners detecting, or noticing, patterns and working out a ‘rule’ for themselves before they practise the language.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) Experimentations (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.

    Reply
  318. Avatar Ramsey Ebrubio Emmanuella says:
    4 years ago

    NAME: RAMSEY EBRUBIO EMMANUELLA
    DEPARTMENT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT
    REG NO:20638822DA
    EMAIL: ramseyebrubio2020@gmail.com
    The deductive method is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalisations and theories.

    The principal steps in the process of deriving economic generalisations through deductive logic are:

    (a) Perception of the problem to be enquired into;

    (b) Defining precisely the technical terms and making appropriate assumptions, often called postulates or premises;

    :

    (c) Deducing hypotheses, that is, deriving conclu­sions from the premises through the process of logical reasoning; and

    (d) Testing of hypothesis deduced.

    (a) Perception of the Problem:
    In any scientific enquiry, the analyst or theorist must have a clear idea of the problem to be enquired into. He must know the significant variables regarding whose behaviour and interrelationship he wants to derive generalisations. The perception of the problem is by no means an easy task.

    (b) Definition of Technical Terms and Making of Assumptions:
    The next step in the process of deriving economic generalisations is to define precisely and unambiguously the various technical terms to be used in the analysis as well as to state clearly the assumptions he makes to derive generalisations.

    :

    As mentioned above, assumptions may be behavioural pertaining to the behaviour of the economic variables or they may be technological relating to the state of technology and the factor endowments. The crucial assumptions are made on the basis of observations or introspection.

    A crucial assumption that has been taken in economics is that consumers try to maximise their satisfaction and producers try to maximise their profits. Likewise, it is assumed that investors try to minimise their risk and maximise the expected rate of their profits. Some of the assumptions are made merely to simplify the analysis and may not be quite realistic.

    The actual economic world is quite complex and full of details in which numerous factors play a part and act and interact on each other. The introduction of simplifying assumptions is quite necessary in order to bring out the importance of really significant factors having a bearing on the problem under investigation.

    Ac­cording to Prof. Boulding, economic theory represents just a ‘map’ of real world phenomenon and not a perfect picture of it. To quote him, “Just as we do not expect a map to show every tree, every blade of grass in a landscape, so we should not expect economic analysis to take into account every detail and quirk of real economic behaviour.”

    :

    It, therefore, follows that each and every assumption made by a theory may not be realistic. The crucial factor in building up a valid theory is whether its predictions are corroborated by the facts in the world. A correct scientific theory or generalisation must be expressed in the form of a hypothesis that is conceivably refutable.

    As mentioned above, Professor Friedman in his now well-known article, “The Methodology of Positive Economics” has expressed the view that undue importance should not be given to the ‘realism’ of assumptions. What matters most from the viewpoint of scientific theory, according to him, is whether it enables us to predict things accurately.

    (c) Deducing Hypotheses through Logical Deduction:
    The next step in deriving generalisations through deductive logic is deducing hypotheses from the assumptions or premises taken. A hypothesis describes relationship between factors affecting a phenomenon; it establishes the cause and effect relationship between the variables having a bearing on the phenomenon.

    Then, through logical process, hypothesis is deduced from the assumptions made. This logical reasoning may be carried out verbally or it may be conducted in symbolic terms using the language of what is known as symbolic logic.

    :

    The geometric or graphic technique is also usually employed to deduce the hypotheses about the relationship between factors. Besides, the process of logical deduction may be done with the help of more formal mathematics.

    These days in almost all branches of modern economics, mathematics as tool of analysis for deriving economic theories and generalisations is being increasingly used. The use of mathematics in economic analysis proves extremely useful where geometrical methods make the analysis more complicated to comprehend. Besides, the use of mathematical method makes the derivation of economic hypotheses more rigorous and exact.

    It is worthwhile to note that in deriving analytically sound hypotheses, one should guard against committing logical fallacy in the process of logical deduction. For instance, it is inappropriate to conclude that A must be the cause of B, if A happens to precede B.

    Further, it is logically fallacious to argue that since there exists a high degree of correlation between the two factors, say between the supply of money and the general price level, the former must be the cause of the latter, unless the causation must be logically developed.

    (d) Testing or Verification of Hypotheses:
    ADVERTISEMENTS:

    Hypotheses obtained above have to be verified before they are established as generalisations or principles of economics. For the verification of hypotheses, economists cannot make controlled experiments, because they have to discover unifor­mities in behaviour patterns of man.

    We cannot make experiments with man under controlled con­ditions, such as in laboratories as physical scientists make experiments with inanimate objects of nature and biologists make these with animals and plants. Therefore, economists have to rely on uncontrolled experience and observations.

    The information regarding uncontrolled experience about the behaviour patterns concerning variables about man and the economy are quite amply available. The reliance by economists on uncontrolled experiences, however, does increase the number of observations required to verify the hypotheses or to establish the generalisations.

    Besides, the need to rely on uncontrolled experiences complicates the analysis and requires that facts must be carefully interpreted to discover successfully the significant relationship between relevant economic variables. Prof. Baur rightly remarks, “The need to rely on uncontrolled experiences does, however, increase the number of observations required, and also complicates their successful analysis and interpretation, before we can discern successfully the significant uniformities and ascertain their limits.”

    It may, however, be pointed out that in spite of the complexities and difficulties involved in verifying economic hypotheses through successful analysis and proper interpretation of uncontrolled experiences and observations, several useful and significant generalisations have been established in economics.

    In the field of microeconomics, the well-established generalisations relate to the in­verse relationship between price and quantity demanded, the direct relation between price and quan­tity supplied, the tendency of the price of the product to be equal to the marginal cost under condi­tions of perfect competition, and the tendency for the wages to be equal to the value of marginal product under conditions of perfect competition and several others.

    :

    In the field of macro-econom­ics, established generalisations relate to the determination of the level of national income by aggre­gate demand and aggregate supply in a capitalist economy, the multiple increase in income and employment as a result of a given initial increase in investment depending upon the size of marginal propensity to consume, the dependence of the amount of investment on the marginal efficiency of capital and the rate of interest and several others.

    It is worth noting that the absence of controlled experiments in economics affects the exactness of economic laws and generalisations.’ This means that the generalisations in economics are not as exact as those of physical sciences and they are therefore not universally applicable under all cir­cumstances. Because of the absence of controlled experiments economic generalisations lack in firmness, they are not easily accepted by all and even generalisations that are refuted by empirical evidence are not abandoned for good by all.

    Prof. Baur rightly points out, the absence of the vivid and dramatic evidence provided by the controlled experiments adds greatly to the difficulty of se­curing acceptance for generalisations which are amply justified by the analysis of the available evidence.” Likewise, absence of controlled experiments, according to Friedman, renders the weed­ing out of unsuccessful hypotheses slow and difficult. They are seldom downed for good and are always cropping up again.

    In regard to flaming and testing of economic generalisations, two related distinctions must be borne in mind. First, functional relationship between economic variables and a historically se­quence of events must be distinguished.

    For instance, the law of demand stating inverse relationship between price and quantity demanded does not become invalid in view of the fact that both prices and quantities sold of many commodities increase during boom periods. This is because certain other forces such as a rise in aggregate investment demand operates which causes increase in both the price and quantity sold during a boom period.

    Second, prediction of a generalisation to show its validity must be carefully differentiated from the forecasting of future events; actual events may not exactly come about as predicted by a generalisation and yet that generalisation may be correct. This is because, as mentioned above, the actual course of events is governed by several other factors assumed by a generalisation which remains constant under the qualification “other things remaining the same”.

    :

    Thus, “even if the prediction that producers of a particular crop respond to a higher price by producing more is correct, this prediction does not enable us to forecast accurately next year’s output (still less the harvest in the more distant future) which in the event will be affected by many factors besides changes in price.”

    In the absence of controlled experiments, for the verification of their theories economists have to rely on the direct observations of events in the real world. By direct observations we mean “gathering of information personally or reliance on comparatively unprocessed material such as files of business firms and government departments, locally published reports, proceedings of representative assemblies, newspapers, advertisements, market reports, auction notices and the like.”

    In order to prove the validity of hypotheses and therefore to establish laws or generalisations, importance of direct observations cannot be underrated. Thus Prof. Baur correctly assets, “The depth and significance of economic generalisations depend on the quality of the underlying observations and analysis.”

    Testing of Economic Hypotheses through Statistical Methods:

    In recent years a very useful method to test economic hypothesis has been developed. This is the statistical method or what is now popularly called econometric method. The statistical or econometric method to verify and establish the theoretical generalisations occupies an important place because of the limited applicability of controlled experimentation in economics.

    The various statistical methods such as regression analysis have been developed to empirically test the economic hypotheses on the basis of collected economic data. The merit of econometrics is that the degree of functional relationship between relevant economic variables in precise quantitative terms is obtained by it and also the level of significance of the results can also be estimated.

    :

    Recently, econometric method has been used to establish the precise relationships between money supply and the price level, quantity of money and the national income, consumption and income, capital accumulation and rate of economic growth and so forth.

    It may, however, be pointed out that statistical analysis or econometrics alone cannot be used to derive and establish economic principles and theories. Economic hypotheses or theories must be developed logically before we can meaningfully use statistical analysis to test and verify them.

    Indeed, a theory or hypothesis is needed beforehand for selecting the relevant facts and data regarding relevant variables which can be subjected to empirical testing through the methods of econometrics Prof. Myrdal is quite right, when he says, “theory, therefore, must always be a prior to the empirical observation of facts.

    Facts come to mean something only as ascertained and organised in the frame of a theory. Indeed, facts as part of scientific knowledge have no existence outside such a frame Questions must be asked before answers can be obtained and, in order to make sense, the questions must be part of a logical coordinated attempt to understand social reality as a whole. A non- theoretical approach is, in strict logic, unthinkable.” Principal steps followed in formulation of economic theories and generalisations through de­ductive method can be summarised as given below.

    :

    Various Steps in Deductive Method

    Various Steps in Deductive Method

    Merits and Demerits of Deductive Method:

    The deductive approach to establish economic generalisations was extensively used by Classi­cal and Neo-Classical economists such as Ricardo, Malthus, Senior, J. S. Mill, Marx, Marshall and Pigou. It still remains popular with modem economists as it has several merits. First, useful math­ematical techniques can be employed to derive laws and theories of economics.

    :

    With the aid of rigorous mathematical logic, economic theories can be developed through the process of deduction which can successfully explain economic phenomena. Secondly, through deductive logic useful economic theories can be derived without the tenuous and detailed collection and analysis of data which are required under the inductive method.

    Thus, as compared to inductive method, deduction is less time-consuming and less expensive. Thirdly, in view of the limited scope for controlled experimentation in economics, the method of deduction is extremely useful method of constructing economic theories. This is because several forces act simultaneously on an economic phenomenon and it is not possible to eliminate some of these by means of a controlled experiment.

    This indicates the crucial importance of deductive logic for building up economic principles or theories. Fourthly, the use of sophisticated mathematical methods in the deductive approach enables the economists to introduce accuracy and exactness in economic principles and theories.

    In spite of the above-mentioned merits, shortcomings of the deductive approach should not be overlooked. The use of deductive method in deriving economic generalisations requires the use of a high-level competence in logic and theoretical abstraction.

    A good deal of care and objectivity is needed to avoid bad logic or faulty economic reasoning. Prof. Blaug rightly opines, “It is perfectly true that economists have often deceived themselves and their readers by engaging in what Leontief once called “implicit theorising” presenting tautologies in the guise of substantive contributions to economic knowledge.”

    Besides, most economists have preconceived notions or biases on several economic issues. If sound and valid economic generalisations are to be established, economists must dissociate themselves from normative preconceptions and biases in their logical process of deducing economic generalisations.

    Further, a great demerit of deductive approach is that with it highly sophisticated theoretical models based on highly unrealistic assumptions may be developed which do not have any operational significance. Indeed, such highly irrelevant analytical models with little empirical content and incapable of being used for policy formulation have in fact been developed by economists. Such models are no more than mere “intellectual toys”. If economics is to serve as an instrument of social betterment, building of such theoretical models having no opera­tional use should be avoided.

    Lastly, in the derivation of economic hypotheses and conclusions through deductive logic, as­sumptions play a crucial role. If the assumptions made are such that when on removing them, economic hypothesis based on them is refuted, then making of these assumptions is not valid.

    Thus, one who uses deductive approach should always keep in mind to what extent the validity of generalisations derived depends on the assumptions made. For instance, the Keynesian macroeconomic analysis is based upon the assumption of a depression-ridden capitalist economy with a lot of excess productive capacity.

    Therefore, a positive harm has been done in applying the Keynesian theories in the context of developing countries such as ours where the assumptions made by Keynes do not hold good. Hence, mere “deductive arm-chair analysis” should be avoided, if the scientific character of economics is to be maintained.

    2. Inductive Method:
    The inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.

    But, it is worth mentioning that the number of observations has to be large if it can yield a valid economic generalisation. One should not generalise on the basis of a very few observations. There are three ways which can be used for deriving economic prin­ciples and theories.

    They are:

    (a) Experimentation,

    (b) observations,

    (c) statistical or econometric method.

    As has been mentioned above, the experimentation, that is, the use of contrived experi­ments is of limited applicability in economics. First, unlike natural sciences which are concerned with analysing the behaviour of either inanimate objects or obedient animals such as rats and rabbits under the influence of chloroform, economics deals with the behaviour of man who is quite fickle, wayward and unmanageable.

    Besides, man cannot tolerate the idea of being experimented upon, either individually or collectively. Secondly, an economic phenomenon is the result of multiplicity of factors and causes acting and interacting upon each other.

    Therefore, economic phenomenon does not repeat itself in the same uniform pattern. Numerous factors acting on an economic phe­nomenon ‘disturb’ it and make its exact repetition unlikely. Thus, as compared with the natural phenomena, economic phenomena are of less uniform pattern, less repetitive and more variable.

    Thirdly, economists study the economic phenomena in which pressure groups such as employ­ers’ associations, trade unions, farming lobby, political parties with their different ideologies play a crucial part and their activities render it difficult to make controlled experiments in the economic world. However, in spite of these difficulties, experimental method can be used in some fields.

    For instance, experiments have been conducted to find out which law of production is valid, that is, whether law of diminishing returns, law of constant returns or law of increasing returns operates in the real world. Besides, public undertakings or big industrial firms often try to assess the effect of the changes in the prices of their products on the demand for it and thus find out the demand elastic­ity of their products.

    Various Steps in Inductive Method:
    Various steps are gone through in developing economic theories through inductive method. The first step, as in the deductive approach, is to identify the problem. The second step is defining technical terms and variables related to the problem.

    It is the next step which is peculiar to the inductive method, namely, the collection of data about the variables related to the problem and doing some preliminary thinking about the possible functional relationships between the relevant variables.

    The next important step in the construction of economic theories in this method is the processing of data collected and finding out what relations between the variables actually hold good. From this, a theory is developed which can be further refined and tested through statistical methods.

    Once the theory has been developed one can make predictions on its basis, as is done in the deductive approach. If predictions of theory are in agreement with the facts and actual behaviour of the economy, then a new reliable theory has been developed. If a new theory explains “how things work” better than the existing ones, it replaces them.

    However, if predictions are in conflict with actual facts and behaviour of the economy, either the theory is discarded or fresh efforts are made to modify and refine it by collecting more data and processing them. The various steps in the construction and development of economic theories through inductive method are illustrated in Figure 2.

    Various Steps in Inductive Method:

    Various Steps in Inductive Method:

    Evaluation of Inductive Method:
    As has been explained above, observations of facts through collection of detailed data and the use of statistical methods to arrive at economic generalisations establishing relationship between facts are being increasingly made.

    Some of the recent researches in the field of macroeconomics, such as the nature of consumption function describing the relation between income and consump­tion, the principle of acceleration describing the factors which determine investment in the economy have been obtained through the use of mainly inductive method.

    However, it needs to be emphasised again that the use of induction or empirical method is not of much value if it is not supported by the economic hypothesis or theory developed by deductive logic. The inductive method can at best be used to empirically test the theory or hypothesis as to whether it is consistent with or refuted by facts.

    The inductive method has another limitation in that there is a great risk of conclusions being drawn from insufficient data. To obtain generalisations through inductive method, one should take care that sufficient number of observations or data has been taken into account.

    Besides, the collection of data itself is also not an easy task. And a researcher who wants to employ the inductive method to arrive at generalisations must have good knowledge of statistical methods, that is, he must know the art of collecting, processing and inter­preting data. It is obvious that as compared with the deductive method, the inductive method is time-consuming and expensive.

    Conclusion: Integration of Two Methods:
    Now, the controversy which existed among the earlier economists as to whether deductive or inductive approach is more appropriate in developing economic theories and principles has been resolved. The modem viewpoint in this regard is that both are needed for the proper development of scientific economic theories. Indeed, the two are complementary rather than competitive.

    The modern economists first derive economic hypotheses through the process of logical deduction and then empirically test them through statistical or econometric methods. Marshall rightly pointed out, “induction and deduction are both needed for scientific thought as the right and left foot are both needed for walking.”

    Empirical studies made through statistical or inductive method without a theoretical hypothesis to serve as a guide for the selection of data are quite useless. The derivation of economic generalisations through the approach of deductive logic without empirically testing them through inductive method is also not quite proper.

    Empirical studies made in inductive ap­proach also bring to light significant economic facts or phenomena which require analytical expla­nation through deductive logic. For instance. Farm Management Studies in India in the mid- fifties led to the discovery of a fact that output per acre on the small-sized farms is higher than that on large farms.

    This led to the various theoretical explanations of the phenomenon observed in the empirical studies. On the other hand, a theory or hypothesis is first developed through deductive logic from some assumptions and then predictions based on the hypothesis are tested through inductive or statistical method. If the predictions are found to be constant with facts, the hypothesis or theory stands proved and if the predictions of the theory are found to be inconsistent with facts, it stands rejected

    Reply
  319. Avatar NNAMANI RONALD CHINEDU says:
    4 years ago

    NAME: NNAMANI RONALD CHINEDU.
    JAMB REG NUMBER:20643783BA.
    DEPARTMENT: PHILOSOPHY.
    FACULTY: SOCIAL SCIENCE.
    EMAIL: nnamanironaldchinedu@gmail.com
    Method of economic analysis.
    1. Deductive method: This method of deriving economic analysis and generalization can also be called abstract, analytical and priori method. This method involves the use of reasoning,logic and hypothesis. Some of its procedures are:
    a. Perception of the problem: This means the economist must have an idea on the problem.
    b. Defining precisely the technical term.
    c. The use of assumption and derivation of hypothesis.
    d. Testing of hypothesis.
    Advantage of deductive method: It is easy,cheap and simple.
    Disadvantage of deductive method: It can be inaccurate because sometimes the assumptions being made can be wrong.

    2. Inductive method: This method of deriving economic analysis is also called Empirical method. In this method the economist observes, gathers and uses data inorder to get it’s economic analysis. Also the use of econometric packages are used for experimentation. Some of the procedures of this method are:
    a. Observation and experimentation.
    b. Formulation of hypothesis.
    c. Generalizing principles.
    d. Verifying against actual fact and statistical method.
    Advantage of inductive method: It is highly reliable and accurate because data is being gathered and used.
    Disadvantage of inductive method: It waste and consumes time. It is also stressful and difficult.

    Reply
  320. Avatar Kiwamu Favour Chizaram says:
    4 years ago

    KIWAMU FAVOUR CHIZARAM
    MATRIC: 2020/242601
    kiwamufavour@gmail.com
    *Basic Methods of Analysis Used By Economists*
    Economic analysis involves the formulation of laws and generalisations through two methods
    1. Deductive
    2. Inductive

    Deductive Method
    The deductive method is called abstract, analytical and priori method and represents an abstract approach to the derivation of economic generalization and theories. It starts from unchanged elementary assumptions/facts then arrive at conclusions using logical analysis or analytical abilities In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    1. Observation of a task/ issue
    2. Making the hypothesis
    3. Testing the hypothesis using more observation

    Inductive Method
    Inductive Method which is called empirical Method derives economic generalization on the basis of experience and observation. It flows from facts to theory. First, theories and facts are collected, then evidence using economic theories and facts are provided. This method formulates using the sub methods like observation, experimentation, statistical method. Data about a particular economic theory are collected and then conclusions are drawn. The stages in this method include
    1. Observation
    2. Formulation of hypothesis
    3. Generalizing principle
    4. Verifying against actual facts

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  321. Avatar Maduakore Loveth Onyinyechi says:
    4 years ago

    Maduakore Loveth Onyinyechi
    Dept. of Pure and Industrial Chemistry
    2019/249050

    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.
    Methods of Economic Analysis
    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.
    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simpledeductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    Disadvantages of Deductive Method
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  322. Avatar Name: Sunday Daniel chimaobi says:
    4 years ago

    Sunday Daniel chimaobi
    Email: mullerjackson344@gmail.com
    Reg no :20122342DF
    1.Deductive method
    2.Inductive method

    A.Deductive reasoning is an important skill that can help you think logically and make meaningful decisions in the workplace. This mental tool enables professionals to come to conclusions based on premises assumed to be true or by taking a general assumption and turning it into a more specific idea or action. Here we explore what deductive reasoning is, how it differs from other types of reasoning, how to use this method of reasoning at work, and examples of deductive reasoning. It’s also referred to as deductive logic or top down thinking ,is a type of logical thinking that used in various industries and is often sought after by employers in new talent .the following is a formula often used in deduction .
    If B=c and C=D,then in most cases B=C.So for example ,if traffic gets bad starting at 4pm and you leave the office at 4pm ,it can be deductively reasoned that you’ll experience traffic on your way home .

    B.Inductive reasoning is a method of reasoning in which the premises are viewed as supplying some evidence ,but not full assurance ,of the truth of the conclusion ,it is also described as a method where one’s experience and observations , including what is learned from others ,are synthesized to come up with a general truth .
    Examples
    I.Deterning when you should learn for work based on traffic
    ii.deciding on incentive plans based on an employee survey
    III.changing a meeting time or format based on participant energy levels

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  323. Avatar Uzoho Kosisochukwu Joy.Reg No:2019/244176 says:
    4 years ago

    Economic analysis involves the formation of laws and generalization through two methods
    (1)deductive. (2)inductive
    DEDUCTIVE
    The deductive method is also called the priori reasoning because it starts from unchallenged elementary or rudimentary assumptions/fact and then arrive at a conclusion using logical analysis or our own analytical abilities.
    Stages of deductive method are;
    Getting Information
    Pattern
    Tentative hypothesis
    Theory
    INDUCTIVE
    Inductive reasoning flows from facts to theory,in these method, information and facts are collected and moved towards proving evidences using economic theory and facts
    Stages of inductive are;
    Theory
    Hypothesis
    Observation of the theory
    Confirmation of the theory
    It is more reliable and realistic since its based on fact

    Reply
  324. Avatar Chukwu Augustina Chicheta says:
    4 years ago

    Name: Chukwu Augustina Chicheta
    Martic no: 2020/243289
    Department: Public Administration And Local Government
    Email: chukwuaugustinac98@gmail.com

    The basic method of analysis used by economist are; Deductive method and Inductive method.

    Deductive method is a process of from one or more statement to reach conclusions.
    In deductive method also known as abstract, analytical represent abstract approach to the derivation of economic generalization and theories.
    The steps in the process of deriving economic generalization through deductive method are:
    i. perception of the problem.
    ii. definition of technical terms and making if assumption.
    III. deducing hypothesis through logical deduction
    iv. verification of hypothesis.

    Inductive method of analysis is a method of reasoning in which statements are viewed as supplying some evidence, but not full assurance of the truth of the conclusion.
    In this method of reasoning, one’s experiences and observations, including what is learned from others, are synthesized to come up with a general truth.
    The followings are the steps in developing economic theories through inductive method:
    i. Identifying the problem.
    ii. defining technical terms and variables related to the problem.
    iii. Collection of data.
    iv. construction of economic theories.

    Reply
  325. Avatar ODO PERPETUA CHIDIMMA says:
    4 years ago

    ODO PERPETUA CHIDIMMA
    2020/242341
    BUSINESS EDUCATION
    odoperpetua57@gmail.com
    ECO 101

    METHODS OF ECONOMICS ANALYSIS

    There are two methods of economic analysis they are:
    1….Deductive method
    2…. inductive method

    1:::DEDUCTIVE METHOD
    In deductive method we start with certain formal data and assumptions. then by logical reasoning or thinking we arrive at certain conclusions. We start with undisputed fundamental facts and after adding some assumption we build up a theory,for instance it is assumed that businessmen aim at maximum profits.it follows from this that business men buy the materials in the cheapest market and sell it in the dearest market. A complete form of deductive method consists of three stages they are..
    -observation
    -deductive reasons and
    – instance and testing by means of further observation. Deductive reasoning provides us with hypotheses or generalizations if the hypotheses are tested and verified with relevance to facts, we have valid economic laws.

    2:: INDUCTIVE
    In this method, economists proceed from a practical angle to problem of science to reduce the gulf between theory and practice. Induction is done in two forms experimentation and statistical form. Facts are collected first,arranged and conclusion are drawn.then these general conclusion are further verified with the reference to actual facts. This method is generally associated with the statistical form of induction.it is highly practical and realistic as it describes things as they are.

    Reply
  326. Avatar Okafor wisdom amamihechukwu says:
    4 years ago

    Name: okafor wisdom amamihechukwu
    Reg number: 20132721BA
    Department: philosophy
    Email: okafor wisdom 2020@yahoo.com

    Deductive method of deriving economics generalization can also be obstract, analytical and a piro method . The deductive method involve reasoning and observation some of the methods being use in deduction methods
    Perception of the problem
    Defining precisely
    The use of assumption
    The use of hypotheses/ testing of hypotheses
    One of the advantage of this method is that it is simple and easy. But one of the disadvantages of the method is that since this method is derived from assumptions, so assumption can be faulty or in correct which leads to wrong conclusion.

    Inductive method : it is derived from facts to theory which involve the collection of data for an economy in order to derive conclusion . It involves observation, formulating of hypothesis, generalizing principles verifying against a cloud facts one of the advantage of this method is that it is reliable and one of the disadvantage is that it consumes time.

    Reply
  327. Avatar Davidson Fidelia Amarachi says:
    4 years ago

    NAME: Davidson Fidelia Amarachi
    REGISTRATION NUMBER: 20122331ja
    DEPARTMENT: Nursing sciences
    EMAIL: fideliadavidson2@gmail.com

    METHOD OF ECONOMIC ANALYSIS
    There are two methods of economic analysis.
    1. Deductive method
    2. Inductive method
    Economic analysis are the methods that economics use in experiment. Our experiments in economics is not usually controlled, in economics we work with “generalization and theory”
    DEDUCTIVE METHOD: This method involves reasoning from the universal to the individual. It derives new conclusion from fundamental assumption established by other methods.
    STEPS IN USING DEDUCTION
    1. Perception of problem.
    2. Find precisely the technical terms.
    3. Make assumption, these assumptions are also know as “postulate”
    4. Deduce hypothesis: we have two type of hypothesis namely , Alternate and Noll.
    5. Test the hypothesis to either reject or accept.
    INDUCTIVE METHOD: It involves the process of reasoning from particular facts to general principle. This method uses econometric packages to run experiments. Examples are views and stata.
    It derives economic generalization on the basis of 1. Experimentations
    2. Observations
    3. Statistical method.
    In conclusion, deductive reasoning aims at testing on existing theory while inductive reasoning aims at developing a theory.

    Reply
  328. Avatar OGBONNA MODESTER AMARACHI says:
    4 years ago

    Name: ogbonna Modester Amarachi
    Reg no:20692748JF
    Email: ogbonnamodester76@gmail.com
    Department: Nursing science

    Methods of economic analysis.
    1)Deductive method:we start from unchallenged elementary or rudimentary assumption/facts and then arrive at conclusion (build a hypothesis or theory).it is also called a prior reasoning..
    Stages in deductive reasoning reasoning/analysis
    i) identify the problem
    ii)make assumptions
    iii)make the hypothesis
    iv) testing the hypothesis using observation

    2) Inductive method:This method formulate principles using the sub-method like observation, experimentation, statistical method.it is based on facts and is more realistic and reliable..
    Stages in inductive method
    i) observation
    ii) formulation of hypothesis
    iii) generalizing principles
    iv)verify actual facts

    Reply
  329. Avatar Okafor wisdom amamihechukwu says:
    4 years ago

    Name: okafor wisdom amamihechukwu
    Reg number: 20132721BA
    Department: philosophy
    Email: okafor wisdom 2020@yahoo.com

    Deductive method of deriving economics generalization can also be obstract, analytical and a piro method . The deductive method involve reasoning and observation some of the methods being use in deduction methods
    Perception of the problem
    Defining precisely
    The use of assumption
    The use of hypotheses/ testing of hypotheses
    One of the advantage of this method is that it is simple and easy. But one of the disadvantages of the method is that since this method is derived from assumptions, so assumption can be faulty or in correct which leads to wrong conclusion.

    Inductive method : it is derived from facts to theory which involve the collection of data for an economy in order to derive conclusion . It involves observation, formulating of hypothesis, generalizing principles verifying against a cloud facts one of the advantage of this method is that it is reliable and one of the disadvantage is that it consumes time.

    Reply
  330. Avatar MBADIHE LUCY CHIDERA says:
    4 years ago

    NAME:MBADIHE LUCY CHIDERA
    DEPARTMENT:COMBINED SOCIAL SCIENCE (ECONOMICS/PHILOSOPHY)
    REG NUMBER:2020/242899
    EMAIL:luhcey@gmail.com
    TOPIC:BRIEFLY EXPLAIN DEDUCTIVE AND INDUCTIVE METHOD OF ECONOMICS ANALYSIS
    DEDUCTIVE METHOD
    This is also called a priori reasoning. In this kind of reasoning, we go from general to specific.
    There are stages in deductive reasoning and these are making the hypothesis but before the hypothesis we make assumptions and these assumption are called POSTULATE.
    Testing the hypothesis using more observations
    For example maize is grown in the northern part but us not grown in the eastern part of the country. This shows us the result like about 70% of maize is grown in yhe north and 30% in the east. Based on the result, i accept that the northern Nigerian is mostly known for growing maize while the eastern part does not.
    So after making the hypothesis very variable we get general economic principles or laws.
    This method us important for economists as it focuses upon economic reasoning which is of paramount importance.
    In this method, of reasoning, we start from assumptions, thus,if the assumptions happen to be logically flawed, the whole process becimes faulty and woukd give wrong conclusions. The logical fallacy is a disadvantaged of this method.

    INDUCTIVE METHOD:
    Rhis is called empirical method. This type if reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evudrnce using economic theory and fact.
    Inthis method, we make yse of econometric package to run our experiment. Based on your data, you then give economic advice.
    In this method , we observr, generalize principles and also verifications against actual facts.
    Since itbis based in facts, it is more realistic and reliable. By using statistical methods and experimentations makes the process more scientific, thus, more acceptable rather than just dependable on your own reasoning snd logic.
    The collection of all the data is not an easy job and varies from person to person.

    Reply
  331. Avatar Eleazu Kamcy Godwin says:
    4 years ago

    Eleazu Kamcy Godwin
    Reg no:2020/242589
    There are two methods which include:
    1.Deductive reasoning:Deductive reasoning is also called the ANALYTICAL METHOD and they derive conclusion from general truths take few general principles apply them and make conclusions.They first make economic assumptions which are called either POSTULATE or PREMISES.So when the economist want to use the Deductive reasoning he first finds out the concrete idea of the problem inquired into and then define the technical terms and deduce hypothesis from economic assumptions taken.So therefore u can derive new conclusion from fundamental assumption or truth established by other network.
    2.Inductive method of reasoning is about collecting facts and applying them.It uses econometic packages experimentation and observation unlike other sciences that use controlled experiments. So the inductive method we collect information and facts we then use economic method to provide strong economic theory and facts.So in inductive method we collect facts draw conclusion and use it to test other conclusion

    Reply
  332. Avatar Alumona Chukwubuikem Cletus says:
    4 years ago

    Name: Alumona Chukwubuikem Cletus
    Reg No: 2698038FF
    Department: Public Administration and Local Government
    Email: alumonacletus20@gmail.com

    Deductive reasoning
    This is also called a prior reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific.
    The stages in deductive reasoning are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.
    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn.
    The stages in this method are:
    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  333. Avatar Onyebuchi Nelson chukwuemeka says:
    4 years ago

    Name: Onyebuchi Nelson
    chukwuemeka
    Reg no : 20631414BA
    Matric no : 2020/243309
    Email: emekanelson035@gmail.com
    Department: public administration and local government

    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    * Observation of a task/ issue
    * Making the hypothesis
    * Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.
    Advantages of Deductive Method
    * It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    * This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    * Observation
    * Formulation of a hypothesis
    * Generalizing principles
    * Verifying against actual facts.
    Advantages of Inductive Method
    * Since it is based on facts it is more realistic and reliable.
    * Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    * Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    * If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    * It is a time-consuming process and thus expensive as well.
    * The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  334. Avatar Remmy izuchukwu Nicholas says:
    4 years ago

    Name: Remmy izuchukwu Nicholas
    Reg No:20177320HF
    Email: nwoyenicholasizuchukwu@gmail.com
    Department: Nursing student

    What are the basic methods of analysis used by economists ? Briefly and convincingly discuss each of them.

    (1) Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods. Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    (2) Deductive method is known as the analytical abstract a priori method. Here we start with certain formal data and assumptions. Then by logical reasoning we arrive at certain conclusions. We start with undisputed fundamental facts and after adding some assumptions we build up a theory. For instance, it is assumed that businessmen aim at maximum profit. It follows from this that businessmen buy the materials in the cheapest market and sell it in the dearest market.
    In Deductive method of Economic Analysis we proceed from the general to the particular. This is also known as an hypothetical method for some of the assumptions may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions. In economics we start with very simple premises and work up gradually or more and more complex hypotheses.
    A complete form of deductive method consists of three stages, viz.,
    observation;
    deductive reasoning and
    instance and testing by means of further observations.
    Deductive reasoning provides us with hypotheses or generalizations. If the hypotheses are tested and verified with relevance to facts, we have valid economic laws.

    Reply
  335. Avatar Sunday Morewell Chizuru says:
    4 years ago

    NAME: Sunday Morewell Chizuru
    REG. NUMBER: 2020242632
    GMAIL ADDRESS: ginikachim232@gmail.com
    METHODS OF ECONOMICS ANALYSIS
    There are two basic methods used by economics for analysis.
    1. Deductive method
    2. Inductive method
    DEDUCTIVE METHOD
    Deductive method is known as the analytical abstract a priori method. Here we start with certain formal data and assumptions. Then by logical reasoning we arrive at certain conclusions. We start with undisputed fundamental facts and after adding some assumptions we build up a theory. In Deductive method of Economic Analysis we proceed from the general to the particular. This is also known as an hypothetical method for some of the assumptions may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions.Deductive reasoning provides us with hypotheses or generalizations. If the hypotheses are tested and verified with relevance to facts, we have valid economic laws.
    INDUCTIVE METHOD
    In this method, economists proceed from a practical angle to problems of science to reduce the gulf between theory and practice. Induction is done by two forms, viz. experimentation and statistical form. Facts are collected first, arranged and conclusions are drawn.Then these general conclusions are further verified with reference to actual facts.
    The inductive method is generally associated with the statistical form of inductions. The statistical approach has a larger field in economic investigations than the method of experimentation. Further, the method of statistical induction is indispensable for the formulation of economic policy.

    Reply
  336. Avatar Chianumba precious chioma says:
    4 years ago

    Name:- Chianumba precious chioma
    Matric number:-2020/242581
    Department:- Economics
    1. Inductive Reasoning:- A method of reasoning in which the premises are viewed as supplying some evidence but not fully assured of the truth or conclusion..It’s the process of reasoning from particular fact to general principle.
    For example if we observe dat 10 goes to a wedding 7 eats jellof rice ,2 eat fried rice and one takes nothing .From this we can draw to a conclusion dat everyone likes jellof rice..

    2. Deductive Reasoning:- It consists in deriving conclusion from general truths,takes few general principle and apply them in drawing conclusion.For instance, five accept that the general proposition that man is entirely motivated by self interest in applying the deductive method of economics analysis, we proceed from general to particular.

    Reply
  337. Avatar Okeja Valentine kosisochukwu says:
    4 years ago

    NAME:OKEJA VALENTINE KOSISOCHUKWU
    MATRIC NUMBER:2020/243283
    DEPARTMENT: PUBLIC ADMINSTRATION AND LOCAL GOVERNMENT
    ANSWER:
    There are two basic methods of analysis used by economists and they are
    1: THE DEDUCTIVE METHOD: The deductive method means the reasoning or inference from the general to the particular or the universal to the individual.the deductive method derives new conclusion from the fundamentals assumptions or from truth established

    Deductive method involves four steps
    (i) Selecting the problem
    (ii) Formulating of assumptions on the basis of which the problem is to be explored
    (iii)The formulation of hypothesis through the process of logical reasoning whereby inferences are drawn
    (iv) Verifying the hypothesis

    The second basic method of analysis used by economists is
    (2) THE INDUCTIVE METHOD: This is the process of reasoning from a part to the whole, from particulars to generals or from the individual to the universal.It is an ascending process in which facts are collected,arranged and then general conclusions are drawn on the basis of experience and observations it had four steps which are:
    (I) THE PROBLEM: Here the problem should be properly and clearly stated

    (ii)Data: The second step is the collection, classification and analysis of using appropriate statistical techniques

    (iii) observation: Data are used to make observations about particular facts concerning the problem
    (iv) Generalisation: Generalisation is logically derived which established a general truths from particular facts

    Reply
  338. Avatar ONWUEGBUSI VICTORIA ADAOBI says:
    4 years ago

    NAME: ONWUEGBUSI VICTORIA ADAOBI
    REG NO: 20168431GA
    DEPARTMENT: NURSING SCIENCE
    FACULTY: HEALTH SCIENCES
    METHODS OF ECONOMIC ANALYSIS:
    1. Deductive Method
    2. lndcutive Method
    DEDUCTIVE METHOD : This is the process of obtaining conclusion from other people’s work, either from an assumption or truth established by other methods . They begin with a theory, supports it with observation and arrives at a confirmation..
    INDUCTIVE METHOD: This is the process by which learner’s defect, pattern and work out rules for themselves. They begin an observation, supports it with patterns and then arrives at a hypothesis or theory.

    Reply
  339. Avatar Orji uzoamaka .J. says:
    4 years ago

    NAME: ORJI UZOAMAKA .J.
    MATRIC. NUMBER: 2020/242612
    E-MAIL ADDRESS: orjiuzoamaka2019@gmail.com
    Department: Economics

    There are basic methods of analysis used by economists
    1. DEDUCTIVE METHOD: This method is based on inferences from certain laws and principles which are assumed go to be true,to the analysis of facts.
    STEPS INVOLVED IN THE DEDUCTIVE METHOD OF ANALYSIS
    I) Identification of the problem to be inquired into.
    II) Unambiguous identification of technical terms and formulating clear assumptions.
    III) Formulating of hypothesis through logical reasoning from the assumptions made.
    IV) Verification of hypothesis (if the prediction are factual ,the hypothesis stands proved)
    Merits: It brings about exactness and clarity in economic analysis.
    It is real and simplifies complex problem by dividing it into component Parts.
    It helps in drawing inferences which are of universal validity based on general principles.
    However,this method of economic analysis have some shortcomings such as:
    Unrealistic assumptions. The hypothesis is not universally applicable. Incorrect verification as a result of inadequate data.

    2) INDUCTIVE METHOD: in this method, facts are collected, arranged and then general conclusions are drawn.

    STEPS INVOLVED IN THE INDUCTIVE METHOD

    I) Identification of the problem.
    II) defining technical terms.
    III) collection of data based on the variables and identifying relationships between the relevant variables.
    IV) processing of data and identifying the best V) relations between the variables.
    VI) prediction of theories.

    MERITS OF INDUCTION METHOD

    I) this method helps in future investigations by providing general principles.
    II) it’s based on facts.
    III) In this method conclusions can be drawn and appropriate remedial measures can be taken.

    IV) it aids government in economic policy formulations.

    DEMERITS OF INDUCTION METHOD
    I) uncertain conclusions.
    Ii) misinterpretation of data.
    III) costly method.
    IV) difficult to prove hypothesis.

    Reply
  340. Avatar Ayogu Timothy peace says:
    4 years ago

    Name: Ayogu Timothy peace. Reg no:2020/243117. Department: philosophy. any economic analysis involve the formulation of the laws and generalizations these methods:. 1, deductive method is also called a priori reasoning,we begin from unchallenged elementary or rudimentary assumption/facts and then arrive at conclusion (build a hypothesis or theory) using logical analysis or our own analytical abilities. *Observation of task issue *making the hypothesis. *testing the hypothesis using more observation etc. 2, Inductive method flow from fact theory.first,we collect facts and informations then move towards providing evidence using economic theory. *Observation *formulation of hypothesis *generalizing principles *verifying against actual facts

    Reply
  341. Avatar Ichie Joy Chinazaekpere says:
    4 years ago

    NAME: ICHIE JOY CHINAZAEKPERE
    REG NUMBER: 2020/242595
    Email ADDRESS: ogbonnaichie85@gmail.com
    The basic methods of analysis used by Economist are:
    (A). Deductive method
    (B). Inductive method

    DEDUCTIVE METHOD is also known as analytical, abstract or priori method.
    Deductive method provides us with hypothesis or generalization based on assumptions.
    In deductive method of Economic analysis, we proceed from general to specific.
    Deductive method is hypothetical because it is based on assumptions which may not correspond with actual facts, but very near actual facts which may be used as postulate for starting, reasoning and drawing conclusions.

    INDUCTIVE METHOD also called empirical method derives generalisation from observation and experimentation. Facts are collected first, arranged and conclusions are drawn.
    In this method, Economist precede to problems practically.
    Induction is divided into three forms, Viz:
    a. Experimentation
    b. Observation
    c. Statistical methods
    Inductive method is related with the statistical form of induction

    Reply
  342. Avatar Olaedo Okorafor-Nwosu says:
    4 years ago

    Name:Okorafor-Nwosu Olaedo
    Reg Number: 20670366JF
    Email:lolookorafornwosu@gmail.com
    1. Deductive method can also be called abstract method. The abstract method is done by deriving conclusion from facts taken and analyzed to draw conclusions.
    The stages are
    a. The analyst having a clear idea of the problem
    b. The analyst clearly noting the technical terms
    c. In deriving generalization,the analyst must derive hypothesis from assumptions made.
    d. Verification of hypothesis must be carried out
    Deductive method saves time.

    2. Inductive method is also called empirical method which involves the process of reasoning from particular facts to principles. The stages of both methods are same

    In conclusion,both methods are needed for economic analysis,we can apply any of them or both if such situation arises.

    Reply
  343. Avatar Umezulike Treasure Mmesoma says:
    4 years ago

    Name:Umezulike Treasure Mmesoma
    Dept: Economics
    Reg no:2016881JF
    Course code: Eco 101
    1. Methods of Economics analysis includes; Inductive and Deductive methods.
    2. Inductive ; This is the empirical method, it involves the process of reasoning from particular facts to general principles. This method makes use of Econometric packages such as E-views to run analysis.
    STEPS OF INDUCTIVE METHOD;
    • Observation
    • Formation of Hypothesis
    • Generalization.
    • Verification

    3. Deductive; This is the analytical ,abstract or prior method . it consists of deriving conclusions from general truths.
    STEPS OF DEDUCTIVE METHODS
    • Perceptions of problems to be inquired.
    • Defining terms.
    • Deducing hypothesis.
    • Testing hypothesis.

    Reply
  344. Avatar Ani Chisom promise says:
    4 years ago

    Name:Ani chisom promise.
    Dept.:Economics
    Matric no:2020/242569
    Reg no:20632104HF
    Email:sommypromise5400@gmail.com
    METHODS OF ECONOMIC ANALYSIS
    There are two basic methods of economic analysis which is:*Deductive method and * Inductive method.
    DEDUCTIVE METHOD:deductive method can also be called “abstract method”.It consist in driving conclusion from general truth.It is the generalization between variables.And in this deductive method there are principle methods of making use of it ie steps of deductive method.
    1*. Perception of the problem to inquired:In driving economic generalizations,the analyst must have a precise and clear idea of the problem to be injured into.Identify the problem first to turn your generalization into theory,make everybody see there is a problem.
    2*.Deducing of terms: Define clearly the technical terms used analysis.Make a realistic assumption the one that is verifiable.
    3*.Deducing hypothesis from the assumption:This is the third step in driving generalization it is deducing hypothesis from the assumption taken.
    Testing of hypothesis:Before concluding or establishing generalization,hypothesis should be verified through direct observations of event in rear world and through statistic methods.Base on your results your generalization will now be accepted or rejected.
    MERIT OF DEDUCTIVE METHOD.
    1*.It is near to reality.
    2*.It is less time consuming.
    3*.Because of the use of mathematical technique in deducing theory of economics it gives room for exactness.
    4*.It helps in driving economic theory
    5*.It is simple because it is analytical.
    DEMERIT OF DEDUCTIVE METHOD
    *.The deductive method is simple and precise only if the underlying assumption are valid.
    *The deductive method is highly abstract.It requires,a great deal of care to avoid bad logic.
    INDUCTIVE METHOD:Inductive method is also called “Empirical method”.It is the process of reasoning from part facts to generalization principle.It makes use of econometric packages ro run experiment.Also in Inductive there are steps in achieving the method:
    1.Observation.
    2.Formulation hypothesis.
    3.Generalization principles.
    4.Verification.
    MERIT OF INDUCTIVE METHOD
    1.Since it is based on facts it is more reliable.
    2.By using statistical methods and experimentations makes the process more scientific, thus,more acceptable universally rather than depending on your own reasoning.
    3.It helps in future Investigations.
    DEMERIT.
    1.If the data used is insufficient and faulty it would definitely lead to faulty conclusion,then,making hypothesis less reliable.
    2.it is time consuming and expensive.
    3.The collection of data itself is not an easy task and it differs from different investigators.

    Reply
  345. Avatar Ikwuagwu Chinaza Loveth says:
    4 years ago

    METHODS OF ECONOMIC ANALYSIS
    There are basically two methods of economic analysis
    1. Deductive method
    2. Inductive method
    EXPLANATION
    Deductive Method
    The deductive Method is also called abstract, analytical or a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific.

    The stages in deductive reasoning are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    Disadvantages of Deductive Method
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method
    formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn.

    The stages in this method are:
    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person as to how they collect data.

    Reply
  346. Avatar Nwanekezie Praise Uchechukwu (2019/241263) says:
    4 years ago

    METHODS OF ECONOMIC ANALYSIS
    There are basically two methods of economic analysis
    1. Deductive method
    2. Inductive method
    EXPLANATION
    Deductive Method
    The deductive Method is also called abstract, analytical or a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific.

    The stages in deductive reasoning are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    Disadvantages of Deductive Method
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method
    formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn.

    The stages in this method are:
    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person as to how they collect data.

    Reply
  347. Avatar Nwanekezie Praise Uchechukwu says:
    4 years ago

    METHODS OF ECONOMIC ANALYSIS
    There are basically two methods of economic analysis
    1. Deductive method
    2. Inductive method
    EXPLANATION
    Deductive Method
    The deductive Method is also called abstract, analytical or a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific.

    The stages in deductive reasoning are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    Disadvantages of Deductive Method
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method
    formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn.

    The stages in this method are:
    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person as to how they collect data.

    Reply
  348. Avatar Name: Eze Emmanuel ifeanyi. Reg number: 20688258DA. Department: philosophy says:
    4 years ago

    METHOD OF ECONOMIC ANALSIS

    *Deductive method
    * Inductive method
    * Deductive method: Deductive method simple means the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of the fact; that is, deriving conclusions from general truths and applying them to draw conclusions. This method aims at testing an existing theory. It is near reality but less time consuming and less expensive.
    * Inductive method: Inductive method which is also called empirical method derives economic generalization on the basic of experience and observations.in this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at a certain generalization which follow from the observation collected.

    Reply
  349. Avatar AMADI ONYINYECHI JOY, REG NUMBER: 2019/246142 says:
    4 years ago

    DEPARTMENT: PIRE AND INDUSTRIAL CHEMISTRY
    COURSE CODE: ECO 101
    COURSE TITLE: PRINCIPLES OF ECONOMICS

    METHODS OF ECONOMIC ANALYSIS
    Economic analysis involves the formulation of laws and generalization through two methods, namely;
    1. Deductive Reasoning
    2. Inductive Reasoning

    DEDUCTIVE REASONING
    The deductive reasoning, also called analytical/abstract methods or prior reasoning. It consists of deriving conclusions from general truths, takes few general principles and applies them to draw conclusions. In this method, reasoning gives hypothesis, and If the hypothesis gets verified, we get general economic principles or laws.
    STEPS OF DEDUCTIVE REASONING
    The main steps involved in deductive logic are:

    1. Observation of task/issue (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.

    2. 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.

    3. Deducing/Making Hypothesis from the assumptions: The third step in deriving generalizations is deducing hypothesis from the assumptions taken.

    4. Testing of Hypothesis using more Observations: Before establishing laws or generalizations, hypothesis should be verified through direct observations of events in the rear world and through statistical methods.
    ADVANTAGES OF DEDUCTIVE REASONING
    * It is near to reality, less time consuming and less expensive.
    * It is a simple method, because it is analytical and doesn’t involve the use of complex software analysis.
    * It focuses on economic reasoning, which is more important.
    * The use of mathematical techniques brings accuracy and precision in economic analysis.
    DISADVANTAGES OF DEDUCTIVE REASONING
    * The method is simple and precise only if the assumptions are valid.
    * It is highly abstract and requires great care to avoid bad logic and conclusions.
    * It is not applicable universally, as Professor Learner describes the method as “armchair” analysis, because the premises from which inferences are drawn may not hold good at all times and places.

    INDUCTIVE REASONING
    The inductive reasoning is also known as “empirical method”. It involves the process of reasoning from particular facts to general principle. In inductive reasoning, data is collected about a particular economic theory, then moved towards providing evidence using economic theory and facts, then conclusions are drawn.
    This method derives economic generalizations on the basis of:
    (i) Experimentations;
    (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.
    STEPS/ STAGES OF INDUCTIVE REASONING
    1. Theory
    2. Formulating Hypothesis
    3. Generalizing Principles
    4. Verification/Confirmation
    ADVANTAGES OF INDUCTIVE REASONING
    * It is based on facts, making it more realistic.
    * The use of statistical techniques makes the method reliable.
    * It helps in future investigations.
    * Statistical methods makes it more scientific, thus more universally acceptable.
    * Due to the dynamic nature of the economic environment, relying on scientific methods always helps reach logical conclusions, thus inductive reasoning is dynamic.
    DISADVANTAGES OF INDUCTIVE REASONING
    * The process is time consuming and expensive.
    * The method of collecting data is a tidious one.
    * Sources and methods employed in the collection of data differ from investigation to investigation. Therefore, the results may differ even with the same problem.
    * Faulty/ insufficient data leads to faulty conclusions, and less reliable hypothesis.

    CONCLUSION:

    The above analysis reveals that both the methods have weaknesses. We cannot rely exclusively on any one of them. Modern economists are of the view that both these methods are complimentary. Alfred Marshall has rightly remarked:
    “Inductive and Deductive methods are both needed for scientific thought, as the right and left foot are both needed for walking”.

    We can apply any of them or both as the situation demands.

    Reply
  350. Avatar Ibeh Gift Onyinyechi says:
    4 years ago

    NAME: Ibeh Gift Onyinyechi
    DEPARTMENT:Business education
    REG.NO:21260816gf
    EMAIL: giftibeh04@gmail.com
    In economics the things we deal mostly with when talking about the basic methods of analysis used by economists is generalization and theory.The good thing about generalization is that observation is very necessary. The basic methods are: deductive methods and inductive methods
    Deductive methods: This uses abstract approach to figure out economic generalization and theories.
    Steps in deductive methods
    a. Perception of the problem: it involves identifying and analysing the problem .
    b. Defining of technical terms and making assumptions: one has to define clearly the technical terms which are used and state the result of assumption (i.e the postulates). This assumption goes in line with the behaviour of the economic variables .
    c. Formulation of hypothesis: Here hypothesis is derived through deductive logic from which assumptions are made. Hypothesis is either an alternate hypothesis or a null hypothesis.
    d.verification of hypothesis: the hypothesis gotten is to be verified first before they can be established as general education.
    e. Formulation and test of laws: laws are to be made based on the the hypothesis that is formulated .
    f. Predictions are in agreement with the facts: heare the laws made agree with the fact which is the hypothesis.
    g. Predictions that disagree with the fact: here laws formulated are in disagreement with the fact.
    Mordification of assumption: here, previous results are either rejected or accepted. Before that all data have already been collected and analysed.
    Advantages of Deductive method
    a.it is simple to understand since it does not use complex software.
    Inductive method: This is also known as empirical method. It uses econometrics packages like e-view and stata to analyse. Here, detailed data are collected while bearing in mind certain economic phenomenon inother to arrive at a certain observation.
    Steps in Inductive Methods are:
    a. Problem Identification
    b. Formulation of hypothesis
    c. Collection of data
    e. Organising or analysing data
    f. Formulation of laws
    g. Testing of laws
    h. Predictions based on the basis of law
    Advantages of Inductive Methods
    a. It is more realistic
    b. It helps one make good logical conclusions.

    Reply
  351. Avatar Cono Chinemerem Elizabeth says:
    4 years ago

    Cono Chinemerem Elizabeth
    29787831EA
    conoelizabeth@gmail.com
    Department: Philosophy
    The two Basic Economic Analysis is The Inductive and Deductive method.
    Inductive Method: The inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. Induction is done by two forms, namely experimentation and statistical form. Facts are collected first, arranged and conclusions are drawn. In inductive reasoning, we begin with specific observations and measures, begin to detect patterns and regularities, formulate some tentative hypotheses that we can explore, and finally end up developing some general conclusions or theories.An example of inductive logic is, “The coin I pulled from the bag is a penny. Therefore, all the coins in the bag are pennies.”
    Deductive reasoning: also known as deductive logic. Deductive reasoning is the act of coming to a conclusion based on information that is assumed to be generally true. Deductive logic is a type of logical thinking that’s used in various industries and is often sought after by employers in new talent.In Deductive method of Economic Analysis, we proceed from the general to the particular.The deductive method is also named as analytical, abstract or prior method.

    Reply
  352. Avatar Ibeh Gift Onyinyechi says:
    4 years ago

    NAME: Ibeh Gift Onyinyechi
    DEPARTMENT:Business education
    REG.NO:21260816gf
    EMAIL: giftibeh04@gmail.com
    In economics the things we deal mostly with when talking about the basic methods of analysis used by economists is generalization and theory.The good thing about generalization is that observation is very necessary. The basic methods are: deductive methods and inductive methods
    Deductive methods: This uses abstract approach to figure out economic generalization and theories.
    Steps in deductive methods
    a. Perception of the problem: it involves identifying and analysing the problem .
    b. Defining of technical terms and making assumptions: one has to define clearly the technical terms which are used and state the result of assumption (i.e the postulates). This assumption goes in line with the behaviour of the economic variables .
    c. Formulation of hypothesis: Here hypothesis is derived through deductive logic from which assumptions are made. Hypothesis is either an alternate hypothesis or a null hypothesis.
    d.verification of hypothesis: the hypothesis gotten is to be verified first before they can be established as general education.
    e. Formulation and test of laws: laws are to be made based on the the hypothesis that is formulated .
    f. Predictions are in agreement with the facts: heare the laws made agree with the fact which is the hypothesis.
    g. Predictions that disagree with the fact: here laws formulated are in disagreement with the fact.
    Mordification of assumption: here, previous results are either rejected or accepted. Before that all data have already been collected and analysed.
    Advantages of Deductive method
    a.it is simple to understand since it does not use complex software.
    Inductive method: This is also known as empirical method. It uses econometrics packages like e-view and stata to analyse. Here, detailed data are collected while bearing in mind certain economic phenomenon inother to arrive at a certain observation.
    Steps in Inductive Methods are:
    a. Problem Identification
    b. Formulation of hypothesis
    c. Collection of data
    e. Organising or analysing data
    f. Formulation of laws
    g. Testing of laws
    h. Predictions based on the basis of law
    Advantages of Inductive Methods
    a. It is more realistic
    b. It helps one make good logical conclusions

    Reply
  353. Avatar Ibiam Oluwatosin Chimeziri 2019/241426 says:
    4 years ago

    Ibiam Oluwatosin Chimeziri
    2019/241426
    Pure and Industrial Chemistry.
    DEDUCTIVE METHOD
    Deductive reasoning is the process of drawing a conclusion based on premises that are generally assumed to be true. In other words, it is a method used in analysis by means of drawing to conclusion of a particular or specific argument or discussion from something that is generally assumed to be true.
    It is sometimes called “top-down reasoning”. This is because you derive a conclusion from an already existing fact that is out there and is generally known.
    For example; Men that dress corporately are assumed to be smart and gentle, therefore John must be a gentle man
    This example above is a typical illustration of a deductive analysis. From the general (top) that all men that dress corporately are gentle and smart, to the specific which is John who is then judged by premises. This method of analysis goes from General to Particular or Specific scenarios.
    The process of deductive reasoning includes the following steps;
    • Initial assumption
    • Second premises
    • Testing and then
    • A conclusion

    INDUCTIVE METHOD
    Inductive analysis or reasoning is the opposite of deductive reasoning. In this case, there is a collection of data of particular scenarios or specific subjects in which from, a conclusion is drawn rather than taking specific assumptions from generalized scenarios.
    Inductive reasoning is often used to create a hypothesis rather than apply them to different scenarios.
    For example; after observation, a staff in the library department noticed that ever Vice Chancellor for the past ten years were professors, therefore the present Vice Chancellor must be a professor.
    The illustration is a typical inductive method because the staff observed different specific scenarios and then drew a conclusion.
    In this method we go from particular or specific to general.
    With inductive reasoning, the accuracy of the outcome is probable, but not always true, even if each of the first two statements is accurate.

    Reply
  354. Avatar Afoaku Excel Chiemezuo says:
    4 years ago

    Name: Afoaku Excel Chiemezuo
    Jamb Registration number: 20671608GA
    Sex: Male
    Department: Nursing science

    ASSIGNMENT ON BRIEF DISCUSSION ON THE METHODS OF ECONOMIC ANALYSIS.

    The methods of economic analysis involves
    a) Deductive method
    b) Inductive method

    STEPS INVOLVED IN THE DERIVATION OF ECONOMIC THEORIES THROUGH DEDUCTION METHOD

    a) Perception of the problem (subject of enquiry)
    b) Vivid explanation of technical terms and propounding postulates
    C) Deducing hypothesis (deriving conclusions from the postulates through logical reasoning)
    d) Testing and proof of deduced hypothesis

    a) Perception of the problem: The analyst should be able to take note of the important variables regarding the behavioural relationship he wishes to make enquiries and derive theories on.
    b) Explanation of terms and postulates
    This step of deriving economic theory is aimed at defining explicit technical terms to be used and the procedures in analysis in order to facilitate absolute theories.
    c) Deduction of hypothesis through logical reasoning: Through postulates and probable facts on the theories conducted,a suitable deduction is brought to a conclusion.
    d) Testing(verification) of the hypothesis: Theories concluded upon on the behavioural relationship in the allocation of scarce resources gets verified before they get established as a method of economic analysis.

    INDUCTIVE METHOD OF ECONOMIC ANALYSIS

    This method also referred to as empirical method derives it’s theories based on experience and observation. Detailed data are collected with regard to some economic policies and then effort is made to actualize theories that will be in accord with observation made

    STEPS OF DERIVING ECONOMIC THEORIES THROUGH INDUCTIVE METHOD
    a) Experimentation (b) Observation (c) Statistical method
    In our present world, economic hypothesis is derived through the process of logical reasoning and then empirically tested through the statistical method. Both the deductive and inductive method are complementary rather than competitive to each other. Before an economic hypothesis can be established as a tool of economic analysis,it must pass through the deductive process first and then down to the statistical method before it’s approval

    Reply
  355. Avatar AGBO EMMANUEL CHUKWUEMEKA says:
    4 years ago

    Name: AGBO EMMANUEL CHUKWUEMEKA
    Reg no: 2020/242571
    Email: agboss2d@gmail.com

    Methods of Economic analysis includes
    1. Deductive method: it involves reasoning from a few fundamental propositions, the truth of which is assumed or it also derives new conclusions from fundamental assumptions or from truth established by other methods.

    2. Inductive method: which is also known as empirical method involves collection of facts, drawing conclusions from them and testing the conclusions by other facts. It also derives economic generalizations on the basis of experience and observations .

    Reply
  356. Avatar Edeh loveth ifeoma says:
    4 years ago

    NAME-Edeh loveth ifeoma.
    Department-combined social science
    Option-economic/political science
    Matric number-2020/242988
    Reg number-21427904FF.
    Email- ifeomaloveth33@gmail.com
    METHOD OF ECONOMIC ANALYSIS
    1; Deductive method- Deductive method is also called abstract, analytical,and a prior method it represent an abstract approach to the derivation of economic generalisation and theories. With the aid of rigorous mathematical logic. Economic theories can be developed through the process of deduction which can successful explain economic phenomena.Through Deductive logic useful economic theories can be derived without the tenuous and detailed collection and analysis of data which are required under inductive method.thus to as compared to inductive method deduction is less time consuming and less expensive. The use of sophisticated mathematical method in the Deductive approach enables the economist to introduce accuracy and exactness in economics principle and theories.
    2; Inductive method-The inductive method which is also called empirical method derived economic generalisation on the basic of experience and observation. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisation which follow from the observation collected. The main step involved in the application of inductive method are
    Observation, formation of hypothesis, generalisation, and verification.
    Inductive method is based on fact as such ,the method is realistic and this method is dynamic. The changing economic phenomenon are analyzed and on the collected data conclusion and solution are drawn from them. inductive method also help in future investigation.
    CONCLUSION
    The above analysis reveal that both the method are important but that doesn’t mean that will can rely exclusively on any one of them the both method are needed for scientific thought as the right and left leg are needed for walking will can apply any of them or both as the situation demands thank you

    Reply
  357. Avatar Ezukwoke precious Anezi says:
    4 years ago

    Name:Ezukwoke precious Anezi.
    Reg no:2020/243228.
    Department: public administration and local government.
    There are two method of reasoning in theoretical economics. They are the deductive and inductive methods.
    (1) Deductive: deductive means reasoning or inference from the general to the particular or from the universal to the individual. The deductive method derives new conclusion from fundamental assumptions or from truth established by other method. It involves the process of reasoning from certain laws or principals. Which are assumed to be true, to the analysis of facts. The deductive method is also called the abstract, analytical and a priori method. We start from unchallenged elementary or rudimentary assumptions and then arrive at conclusions.
    (2) Indictive: ” Is The process of reasoning from a part to the whole, from particulars to generals or from the individual to the individual”. Becon describe it as “an ascending process” in which fact are collected, arranged and than general conclusion are drawn.

    Reply
  358. Avatar Ani Emmanuella Ngozi says:
    4 years ago

    Name:Ani Emmanuella Ngozi
    Reg no: 20633789BA
    Dep: Business education
    Email :aniemmanuella2020@gmail.com
    METHOD OF ECONOMICS ANALYSIS
    we have 2 methods of economic analysis which are
    DEDUCTIVE METHOD and INDUCTIVE METHOD
    1) Deductive method which is also known as abstract method, in dis type of method we start with certain formal data and assumption,but by logical reason we arrive at certain conclusion, we start with undisputed fundermental fact and after adding some assumption, we build up a theory and in this method assumptions may not correspond to the actual facts,when this happens it is called hypothetical method
    2)Inductive method,in this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalization which follow from the observation collected , one should not generalize on the basis of a very few but in a large way, And in dis method econometric package is used

    Reply
  359. Avatar Desire Onyeogoziri Atuonwu says:
    4 years ago

    INDUCTIVE REASONING
    In this type of reasoning we flow from basic facts to theories. Firstly we gather information and move towards providing evidence using economic theories and facts. This method is also known as the EMPIRICAL method.

    DEDUCTIVE REASONING
    This is also called PRIORI reasoning. We start from unchallenged elementary assumptions/facts and then arrive at a certain conclusion (building a hypothesis or theory) using logical analysis or our own analytical abilities. In this method we go from general to specific.

    Reply
  360. Avatar Obi Amarachi celestina says:
    4 years ago

    Name: Obi Amarachi Celestina
    Reg No: 20855804BA
    Dept: Public administration and local government
    Matric No: 2020/243303
    Email: amaratina20@gmail.com

    They are two basic method of analysis used by economist are ;
    1. Inductive method: inductive method which is also called empirical method drive economic generalizations on the basis of experienment and observation. Therefore inductive method or reasoning is a type of method or reasoning that involves drawing a general conclusion from a specific observations. In this method detailed data are collected with regard to a certain economic phenomenon and efforts is made to arrive at certain generalizations which follows from the observations collected. There are three ways which can be used for driving economic principles and theories:
    1 Experiementation
    2 observations
    3 statistical or econometric method.

    They are various steps in inductive method;
    1 The first step is to identify the problems
    2 The second step is defining technical and variables related to the problem.
    3 The third step which is very important in the inductive method is the collection of data about the variables related to the problem and doing some preliminary thinking about the possible functional relationships between the relevant variables.
    4 Another important step is the constructions of economic theories: this the processing of data collected and finding out what relations between the variables actually hold good.

    2 Deductive method: Inductive method of economic Analysis, we proceed from general to the particular. This is also known as an hypothetical method for some of the assumptioms may not correspond to actual facts, but very near actual facts which may not be used as premise for starting, reasoning and drawing conclusions.
    The Deductive method drive new conclusions from fundamental assumptions or from the truth established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true to the analysis of fact.

    They are steps of driving economic generalizations through deductive logic which are;
    1 perception of the problem to be enquird into: The analyst must have a clear idea of the problem to be enquird into, in order not to make some mistakes.
    2 Definition of technical terms and making of assumptions
    3 Deducing hypotheses, that is driving conclusions from the premises through the process of logical reasoning.
    4 Testing of hypothesis deduced.

    Reply
  361. Avatar Enenta Uzoamaka Pascaline says:
    4 years ago

    NAME: Enenta Uzoamaka Pascaline
    REGISTRATION NUMBER: 20794681BA
    DEPARTMENT: Nursing sciences
    EMAIL: enentarose1@gmail.com

    METHODS OF ECONOMIC ANALYSIS
    There are two methods involved in economic analysis, these includes

    1. Deductive method
    2. Inductive method

    1. Deductive method:- This makes use of a social phenomenon which is first observed, then good and reliable reasons are given based on assumptions that are realistic and can be tested through various research and process to form theory.
    Deductive method begins with generalization and ends with the specific theory.

    2. Inductive method :- This makes use of research questions and the collection of numerous and reliable data which are used to generate hypothesis, undergo tests and observations that are examined then confirmed.

    Reply
  362. Avatar Nweke chinyere gift says:
    4 years ago

    Deductive method:. This can also be called prior reasoning..this method can be analysed firstly from the rudimentary assumptions ,facts and arrives at conclusions using our own analytical abilities.the stages involved are: observation of task , making the hypothesis, testing the hypothesis using more observations…. General economic principles get verified through hypothesis. Advantages. 1..it involves the use of any complex software analysis. 2..it focuses more on economic reasoning… The disadvantage is that it leads to logical fallacy in the sense that in the process of reasoning,we starts from assumptions and if it becomes faulty , logical fallacy takes place… 2..inductive method:this method can be analysed through reasoning from facts to theory and it leads to collecting informations and move towards providing evidence using economic theory …the stages involved are: observations, formulation of a hypothesis, statistical methods… Advantages:. 1.it is more reliable. 2.it makes the process more scientific. 3.relying upon a more scientific method always help reach logical conclusions. Disadvantage. 1.it consumes time. 2.it leads to faulty conclusion if the data is insufficient..

    Reply
  363. Avatar Afoaku Excel Chiemezuo says:
    4 years ago

    Name: Afoaku Excel Chiemezuo
    Jamb Registration number: 20671608GA
    Sex: Male

    ASSIGNMENT ON BRIEF DISCUSSION ON THE METHODS OF ECONOMIC ANALYSIS.

    The methods of economic analysis involves
    a) Deductive method
    b) Inductive method

    STEPS INVOLVED IN THE DERIVATION OF ECONOMIC THEORIES THROUGH DEDUCTION METHOD

    a) Perception of the problem (subject of enquiry)
    b) Vivid explanation of technical terms and propounding postulates
    C) Deducing hypothesis (deriving conclusions from the postulates through logical reasoning)
    d) Testing and proof of deduced hypothesis

    a) Perception of the problem: The analyst should be able to take note of the important variables regarding the behavioural relationship he wishes to make enquiries and derive theories on.
    b) Explanation of terns and postulates
    This step of deriving economic theory is aimed at defining explicit technical terms to be used and the procedures in analysis in order to facilitate absolute theories.
    c) Deduction of hypothesis through logical reasoning: Through postulates and probable facts on the theories conducted,a suitable deduction is brought to a conclusion.
    d) Testing(verification) of the hypothesis: Theories concluded upon on the behavioural relationship in the allocation of scarce resources gets verified before they get established as a method of economic analysis.

    INDUCTIVE METHOD OF ECONOMIC ANALYSIS

    This method also referred to as empirical method derives it’s theories based on experience and observation. Detailed data are collected with regard to some economic policies and then effort is made to actualize theories that will be in accord with observation made

    STEPS OF DERIVING ECONOMIC THEORIES THROUGH INDUCTIVE METHOD
    a) Experimentation (b) Observation (c) Statistical method
    In our present world, economic hypothesis is derived through the process of logical reasoning and then empirically tested through the statistical method. Both the deductive and inductive method are complementary rather than competitive to each other. Before an economic hypothesis can be established as a tool of economic analysis,it must pass through the deductive process first and then down to the statistical method before it’s approval

    Reply
  364. Avatar Ani Emmanuella Ngozi says:
    4 years ago

    Name:Ani Emmanuella Ngozi
    Reg no: 20633789BA
    Dep: Business education
    Email :aniemmanuella2020@gmail.com
    METHOD OF ECONOMICS ANALYSIS
    we have 2 methods of economic analysis which are
    DEDUCTIVE METHOD and INDUCTIVE METHOD
    1) Deductive method which is also known as abstract method, in dis type of method we start with certain formal data and assumption,but by logical reason we arrive at certain conclusion, we start with undisputed fundermental fact and after adding some assumption, we build up a theory and in this method assumptions may not correspond to the actual facts,when this happens it is called hypothetical method
    2)Inductive method is also called empirical method,in this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalization which follow from the observation collected , one should not generalize on the basis of a very few but in a large way, And in dis method econometric package is used

    Reply
  365. Avatar Nwafor Chinonso says:
    4 years ago

    Nwafor chinonso
    2020/243288
    Public admission and local government

    1a) Deductive method and Inductive method

    1b) Deductive method; as the name implies, deals with conclusions from primary assumptions or results established by other methods.
    The process involves; selecting the problem then forming the assumptions on the basis with which the problem is to be explored. Then forming the hypothesis through logical reasoning from which conclusions are derived. Verifying the hypothesis to either validate or invalidate the earlier conclusion.

    ii) Inductive method; Economist use this method to form a practical angle of observation, to reduce the gulf between theory and practice. Induction is done by two basic forms; statiscal and experimentation form. Facts are primarily accumulated, arranged and conclusions are drawn. Which are often use to give valid economic advices .

    Reply
  366. Avatar Chukwu Glory Onyinyechi says:
    4 years ago

    NAME: Chukwu Glory Onyinyechi
    MATRIC NO.:2020/243175
    DEPARTMENT: Public administration and local government

    DEDUCTIVE REASONING also known as priori reasoning, involves the observation of issues, making and testing hypothesis using more observation and if generally accepted becomes an Economic law.

    INDUCTIVE METHOD:This is quite similar to deductive method but we use econometric packages to run our experiment. Inductive method is also called empirical method.it derives economic generalization on the basis of experiment and observation.

    Reply
  367. Avatar chukwudumebi uzoma says:
    4 years ago

    Name : UZOMA CHUKWUDUMEBI U
    Reg No: 2019/244753
    Dept: Pure And Industrial Chemistry
    Email: chukwudigeorge752@gmail.com

    They are two methods of analysis used by economist ; inductive method and deductive method.
    1 Inductive method: The inductive method which is also called empirical method drives economic generalizations on the basis of experienment and observation. Therefore inductive method or reasoning is a type of method or reasoning that involves drawing a general conclusion from a set of observations.
    In this method detailed data are collected with regards to a certain economic phenomenon and efforts is made to arrive at certain generalizations which follows from the observations collected.

    There are three ways which can be used for driving economic principles and theories
    1 Experiementation
    2Observations
    3 statistical or econometric method

    They are various steps in inductive method
    1 the first step is to identify the problems
    2 the second step is to identify technical and variables related to the problem
    3 The third step which is very important in the inductive method is the collection of data about the variables related to the problems and doing some preliminary thinking about the possible functional relationship between the relevant variables
    4 Another important step is the constructions of economic theories: this the processing of data collected and finding out what relations between the variables actually hold good.

    2 Deductive method: In deductive method of economic Analysis, we proceed from general to the particular. This is also known as an hypothetical method for some of the assumptioms may not correspond to actual facts, but very dear actual facts which may be used as premise for starting, reasoning and drawing conclusions.
    The Deductive method drives new conclusions from fundamental assumptions or from the truth established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true to the analysis of facts.

    They are steps of driving economic generalizations through deductive logic are
    1 perception of the problem to be enquird into: the analyst must have clear odeal of the problem to be enquird into, inorder not to make some mistakes.
    2 Definition of technical terms and making of assumptions.
    3 Deducing hypothetical, that is driving conclusions from the premises through the process of logical reasoning
    4 Testing of hypothesis deduced

    Reply
  368. Avatar Onwurah Jennifer chidera says:
    4 years ago

    NAME: ONWURAH JENNIFER CHIDERA
    REG NO: 20017774JA
    EMAIL ADDRESS: jennydera2004@gmail.com

    Basic methods of analysis used by economists
    In economics, generalisations have been derived in two ways:
    Deductive method
    Inductive method

    THE DEDUCTIVE METHOD –
    This can also be called analytical or abstract method which represents an abstract approach to the derivation of economic generalisations.
    The principal steps that are taken to derive economic generalisations are:
    A. Testing of hypothesis deduced
    B. Perception of the problem to be enquired into
    C. Deducing hypotheses

    A . Testing of hypothesis deduced
    For the testing/verification of hypotheses, economists cannot make controlled experiments because they have to discover uniformities in behavior patterns of man.
    The information concerned with controlled experience about the behavior patterns concerning variables about man and the society.
    However, inspire of the difficulties involved in verifying economic hypotheses through successful analysis and proper interpretation of uncontrolled experiences and observations, severally useful generalisations hv been established in economics .
    The depth and Significance of economic generalisations depends on the quality of the underlying analysis and observations.

    B . Perception of the problem to be enquired into
    In any scientific enquiry, the analyst must have a clear idea of the problem to be enquired into.
    He must know the significant variables concerning whose behavior he wants to derive generalisations. The perception of the problem is by no means am easy task.

    THE INDUCTIVE METHOD
    This is also called empirical method.
    It derived economic generalisations on the basis of experience and observations.
    There are three ways which can be used in deriving economic principals and theories;
    1) experimentation
    2) observation
    3) satistical or econometric method

    Reply
  369. Avatar EZENKILI CLEOPATRA SOCHIMA says:
    4 years ago

    Name: Ezenkili Cleopatra Sochima
    Reg Number: 20643229CF
    Email Address: ezenkilicleopatra@gmail.com
    Department: Nursing Sciences

    Basic Methods of Analysis used by economists

    An economic theory derives laws or generalizations through two methods
    1. Deductive Method, and
    2. Inductive Method

    1. DEDUCTIVE METHOD OF ECONOMIC ANALYSIS: It is also named as analytical,abstract or prior method. The deductive method consists in deriving conclusions from general truth, 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.
    Steps of Deductive Method
    i. Perception of the problem to be inquired into.
    ii. Defining of technical terms.
    iii. Deducing hypothesis from the assumptions.
    iv. Testing of hypothesis.
    Merits of Deductive Method
    i. It is simple.
    ii. It is less time-consuming and less expensive.
    iii. It helps in deriving economic theories.
    Demerits of Deductive Method
    i. Professor Learner describes the deductive method as ‘armchair’ analysis. According to him the premises from which inferences are drawn may not hold good at all times.
    ii. It is highly abstract, it requires a great deal of care to avoid bad logics.
    iii. It is sometimes misleading when the assumptions are based on half truth.

    2. INDUCTIVE METHOD OF ECONOMIC ANALYSIS: It is also called ’empirical method’. It was adopted by the ‘Historical School of Economists’. It involves the process of reasoning from particular facts to general principles.
    This method derives economic generalization on the basis of experimentations, observations and statistical methods.
    In this method, data is collected about a certain economic phenomenon.
    Steps of Inductive Method
    i. Observation
    ii. Formation of hypothesis
    iii. Generalization
    iv. Verification
    Merits of Inductive Method
    i. It is based on facts as such the method is realistic.
    ii. It is reliable.
    iii. It is dynamic.
    iv. It also helps in future investigations.
    Demerits of Inductive Method
    i. It is time-consuming and expensive.
    ii. The collection of data itself is difficult and stressful.
    iii. if conclusions drawn from insufficient data, the generalization obtained are faulty.

    Reply
  370. Avatar OGBENE LINDA CHIMUANYA says:
    4 years ago

    NAME: OGBENE LINDA CHIMUANYA
    REG. NO. 2020/242902
    DEPT: COMBINED SOCIAL SCIENCE
    COURSE CODE: ECO 101
    METHOD OF ECONOMIC ANALYSIS
    * Deductive method and
    *Inductive method
    Deductive method which is also refers to as prior reasoning means starting from unchallenged elementary assumption/facts and then arriving at conclusion (building a hypothesis or theory) using logical analysis.
    It also involves the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of fact.
    STAGES OF DEDUCTIVE METHOD
    *Observation of a task/issue
    *Making the hypothesis
    *Testing the hypothesis using more observation etc.
    ADVANTAGES OF DEDUCTIVE METHOD
    * It’s simple method that doesn’t involve the use of any complex software analysis.
    *It focus upon economic reasoning which is of Paramount important.
    DISADVANTAGE
    * Logical fallacy

    INDUCTIVE METHOD is facts to theory which involves collecting information and facts and then moving it towards providing evidence using economic theory and facts. It formulate principles using the sub-method-observation, Experimentation, statistical methods. Data is collected about a. Particular economic theory and then conclusion are drawn.
    STAGES IN INDUCTIVE METHOD
    *Observation
    *Formulation of a hypothesis
    *Generalizing principles
    *Verifying against actual facts
    ADVANTAGES OF INDUCTIVE METHOD
    * It is more realistic and reliable
    *Using statistical methods and Experimentations makes the process more scientific
    DISADVANTAGES
    *Insufficient data and faulty leads to faculty conclusion
    * It is time consuming process and expensive.

    Reply
  371. Avatar Akaamu Chidubem Samuel says:
    4 years ago

    NAME:Akaamu Chidubem Samuel
    Reg no:22036628EF
    Faculty:Social Sciences
    Dept:Public Administration And Local Govt
    The usual methods of economic analysis studies — deduction and induction, are available to the economist.

    Both methods come from sciences viz., Logic. The deductive method involves reasoning from a few fundamental pro­positions, of assumption The inductive method involves collection of facts, informations and real essence or real and basic facts from them and testing the conclusions by other facts.
    features of the two methods of economic analysis
    Deduction and Induction:

    Deduction:

    i. Starts from the general and moves to the particular.

    ii. Begins with assumptions and moves to main or exact conclusions.

    iii. Produces a theory, and then examines the facts to see if they follow the theory
    eg:

    An angle in a straight line is 90- assumption)

    a straigh line has four angles– (A logical argument)

    Therefore this straight line has 180 degrees – (A particular conclusion)and with proves

    Induction:

    i. Starts from the main point and moves to the general.

    ii. Begins with main observations and moves to general defination.

    iii. Collects observations, then develops a theory to make up the fact.

    Reply
  372. Avatar Nnamani Obianuju Martina 20693363GA faculty: social sciences department: public administration and local government says:
    4 years ago

    METHOD OF ECONOMICS ANALYSIS
    1. DEDUCTIVE METHOD
    This works from the more general to the more approach which is sometimes called informally as “top down” approach.
    Which might begin with thinking up a theory about a particular topic of interest,then narrow it down into a more specific hypotheses that can be tested,or it can still be narrowed further to collect observation to address the hypotheses, this will ultimately make it to be tested with a specific data _ A confirmation of the original theory.

    2. INDUCTIVE METHOD
    also known as empirical method depends on the observations and experience. It is the opposite of the deductive approach to economic analysis. The inductive method uses three approaches to economic analysis which are: Experimentation ( This is not accepted in economics as they believe that unlike animals man cannot tolerate being experimented upon and for economics being a subject that deals with the behaviour of man this does not work); observations; and statistical or econometric method.

    Reply
  373. Avatar Ivoke Oluchi Praise says:
    4 years ago

    Name: Ivoke Oluchi Praise
    Reg No: 21288668HF
    Dept: Nursing Sciences
    Faculty: Health Sciences and Technology

    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.
    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Deductive And Inductive Methods

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person.

    Reply
  374. Avatar Uhara Godwin Osita says:
    4 years ago

    ASSIGNMENT WRITTEN BY UHARA GODWIN OSITA
    Department of Pure and Industrial Chemistry,
    University of Nigeria, Nsukka
    Reg Number: 2019/249005
    Email: godwinosita194@gmail.com

    Question: What are the basic methods of analysis used by economists?

    Some of the most important methods of economic analysis are as follows: 1. Deductive Method 2. Inductive Method.
    1. Deductive Method:
    Generalisations in economics have been derived in two ways:
    (1) Deductive Method,
    (2) Inductive Method.
    We shall first explain the deductive method of deriving economic generalisations. The deductive method is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalisations and theories.
    The principal steps in the process of deriving economic generalisations through deductive logic are:
    (a) Perception of the problem to be enquired into;
    (b) Defining precisely the technical terms and making appropriate assumptions, often called postulates or premises;
    (c) Deducing hypotheses, that is, deriving conclu­sions from the premises through the process of logical reasoning; and
    (d) Testing of hypothesis deduced.
    (a) Perception of the Problem:
    In any scientific enquiry, the analyst or theorist must have a clear idea of the problem to be enquired into. He must know the significant variables regarding whose behaviour and interrelationship he wants to derive generalisations. The perception of the problem is by no means an easy task.
    (b) Definition of Technical Terms and Making of Assumptions:
    The next step in the process of deriving economic generalisations is to define precisely and unambiguously the various technical terms to be used in the analysis as well as to state clearly the assumptions he makes to derive generalisations.
    As mentioned above, assumptions may be behavioural pertaining to the behaviour of the economic variables or they may be technological relating to the state of technology and the factor endowments. The crucial assumptions are made on the basis of observations or introspection.

    A crucial assumption that has been taken in economics is that consumers try to maximise their satisfaction and producers try to maximise their profits. Likewise, it is assumed that investors try to minimise their risk and maximise the expected rate of their profits. Some of the assumptions are made merely to simplify the analysis and may not be quite realistic.
    (c) Deducing Hypotheses through Logical Deduction:
    The next step in deriving generalisations through deductive logic is deducing hypotheses from the assumptions or premises taken. A hypothesis describes relationship between factors affecting a phenomenon; it establishes the cause and effect relationship between the variables having a bearing on the phenomenon.

    Then, through logical process, hypothesis is deduced from the assumptions made. This logical reasoning may be carried out verbally or it may be conducted in symbolic terms using the language of what is known as symbolic logic.
    (d) Testing or Verification of Hypotheses:
    Hypotheses obtained above have to be verified before they are established as generalisations or principles of economics. For the verification of hypotheses, economists cannot make controlled experiments, because they have to discover unifor­mities in behaviour patterns of man.

    We cannot make experiments with man under controlled con­ditions, such as in laboratories as physical scientists make experiments with inanimate objects of nature and biologists make these with animals and plants. Therefore, economists have to rely on uncontrolled experience and observations.
    Merits and Demerits of Deductive Method:
    The deductive approach to establish economic generalisations was extensively used by Classi­cal and Neo-Classical economists such as Ricardo, Malthus, Senior, J. S. Mill, Marx, Marshall and Pigou. It still remains popular with modem economists as it has several merits. First, useful math­ematical techniques can be employed to derive laws and theories of economics.

    With the aid of rigorous mathematical logic, economic theories can be developed through the process of deduction which can successfully explain economic phenomena. Secondly, through deductive logic useful economic theories can be derived without the tenuous and detailed collection and analysis of data which are required under the inductive method.
    Thus, as compared to inductive method, deduction is less time-consuming and less expensive.

    Thirdly, in view of the limited scope for controlled experimentation in economics, the method of deduction is extremely useful method of constructing economic theories. This is because several forces act simultaneously on an economic phenomenon and it is not possible to eliminate some of these by means of a controlled experiment.

    2. Inductive Method:
    The inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.
    But, it is worth mentioning that the number of observations has to be large if it can yield a valid economic generalisation. One should not generalise on the basis of a very few observations. There are three ways which can be used for deriving economic prin­ciples and theories.
    They are:
    (a) Experimentation,
    (b) observations,
    (c) statistical or econometric method.
    As has been mentioned above, the experimentation, that is, the use of contrived experi­ments is of limited applicability in economics. First, unlike natural sciences which are concerned with analysing the behaviour of either inanimate objects or obedient animals such as rats and rabbits under the influence of chloroform, economics deals with the behaviour of man who is quite fickle, wayward and unmanageable.

    Besides, man cannot tolerate the idea of being experimented upon, either individually or collectively. Secondly, an economic phenomenon is the result of multiplicity of factors and causes acting and interacting upon each other.
    Therefore, economic phenomenon does not repeat itself in the same uniform pattern. Numerous factors acting on an economic phe­nomenon ‘disturb’ it and make its exact repetition unlikely. Thus, as compared with the natural phenomena, economic phenomena are of less uniform pattern, less repetitive and more variable.
    Thirdly, economists study the economic phenomena in which pressure groups such as employ­ers’ associations, trade unions, farming lobby, political parties with their different ideologies play a crucial part and their activities render it difficult to make controlled experiments in the economic world.

    However, in spite of these difficulties, experimental method can be used in some fields.
    For instance, experiments have been conducted to find out which law of production is valid, that is, whether law of diminishing returns, law of constant returns or law of increasing returns operates in the real world. Besides, public undertakings or big industrial firms often try to assess the effect of the changes in the prices of their products on the demand for it and thus find out the demand elastic­ity of their products.
    Various

    Steps in Inductive Method:
    Various steps are gone through in developing economic theories through inductive method. The first step, as in the deductive approach, is to identify the problem. The second step is defining technical terms and variables related to the problem.
    It is the next step which is peculiar to the inductive method, namely, the collection of data about the variables related to the problem and doing some preliminary thinking about the possible functional relationships between the relevant variables.

    The next important step in the construction of economic theories in this method is the processing of data collected and finding out what relations between the variables actually hold good. From this, a theory is developed which can be further refined and tested through statistical methods.

    Various Steps in Inductive Method:
    Evaluation of Inductive Method:
    As has been explained above, observations of facts through collection of detailed data and the use of statistical methods to arrive at economic generalisations establishing relationship between facts are being increasingly made.
    Some of the recent researches in the field of macroeconomics, such as the nature of consumption function describing the relation between income and consump­tion, the principle of acceleration describing the factors which determine investment in the economy have been obtained through the use of mainly inductive method.
    However, it needs to be emphasised again that the use of induction or empirical method is not of much value if it is not supported by the economic hypothesis or theory developed by deductive logic. The inductive method can at best be used to empirically test the theory or hypothesis as to whether it is consistent with or refuted by facts.
    method, the inductive method is time-consuming and expensive.

    Conclusion: Integration of Two Methods:
    Now, the controversy which existed among the earlier economists as to whether deductive or inductive approach is more appropriate in developing economic theories and principles has been resolved. The modem viewpoint in this regard is that both are needed for the proper development of scientific economic theories. Indeed, the two are complementary rather than competitive.
    The modern economists first derive economic hypotheses through the process of logical deduction and then empirically test them through statistical or econometric methods.

    Marshall rightly pointed out, “induction and deduction are both needed for scientific thought as the right and left foot are both needed for walking.”
    Empirical studies made through statistical or inductive method without a theoretical hypothesis to serve as a guide for the selection of data are quite useless. The derivation of economic generalisations through the approach of deductive logic without empirically testing them through inductive method is also not quite proper.
    Empirical studies made in inductive ap­proach also bring to light significant economic facts or phenomena which require analytical expla­nation through deductive logic. For instance. Farm Management Studies in India in the mid- fifties led to the discovery of a fact that output per acre on the small-sized farms is higher than that on large farms.
    This led to the various theoretical explanations of the phenomenon observed in the empirical studies. On the other hand, a theory or hypothesis is first developed through deductive logic from some assumptions and then predictions based on the hypothesis are tested through inductive or statistical method. If the predictions are found to be constant with facts, the hypothesis or theory stands proved and if the predictions of the theory are found to be inconsistent with facts, it stands rejected.

    Reply
  375. Avatar Abosi Peter Osita says:
    4 years ago

    Name: Abosi Peter Osita
    Reg: 20868749hf
    Email abosiosita@gmail.com

    We have two methods of economic analysis
    1. Deductive method
    2. Inductive method

    Deductive method involves collecting, organizing, summarizing sample data set in order to describe, interpret and communicate the importance features of a sample. It represents an abstract approach to the derivative of economic generalizations and theories.

    Steps of deriving economic generalizations through deductive method
    1. Perception or selection of the problem to be enquired into.
    2. Formulation of assumption called postulate or premises.
    3. Formulation of hypothesis
    4.Testing or verifying the hypothesis
    Advantages of Deductive method
    1. Useful mathematical techniques can be employed to derive laws and theories of Economics
    2. Useful Economic theories may be derived
    3. It’s use of mathematical method enable accuracy.
    Disadvantages of Inductive method
    1: unrealistic
    2. It does not easy task

    Inductive method- this is also called empirical method. It derives Economic generalizations on the basis of experience and observation
    Three Ways of deriving inductive Economic principles are:
    1.Experimentation
    2. Observations
    3. Statistical or econometric method

    Reply
  376. Avatar Umeh Oluebube Chukwudum, says:
    4 years ago

    NAME : UMEH OLUEBUBE CHUKWUDUM
    REG NUMBER: 20680149BA
    DEPARTMENT : NURSING SCIENCE
    COURSE CODE: ECO 101
    COURSE TITLE : PRINCIPLE OF ECONOMICS

    Methods of Economics Analysis can said to be a theoretical economics that help to establish the truth. Which have two forms :
    I) Inductive Method or Reasoning
    ii) Deductive Method or Reasoning

    Inductive Method : is the method which formulates principles using the Sub- Method -Observations, experimentations, statistical methods. It means collecting Data of a particular economic theory and you arrive on a conclusions. That goes through four main Stages :
    a) Observation
    b) Formulation of a hypothesis
    c) Generalizing principles
    d) Verification against actual facts
    Advantage of inductive Method
    I) Real and reliable
    ii) it make your process more scientific, which can be acceptable globally
    iii) Using inductive method can make your process strong and also reach the logical conclusion, whether the economic environment change or not.
    Disadvantages of inductive Method
    I) Hypothesis is less reliable when the data used is insufficient
    ii) Expensive
    iii) It is complex process

    Deductive Method :Is also a former, abstract, analytical methods which represents an abstract approach to the derivation of economic generalizations and theories. It have three main stages :
    a) Observation of a task/ issue
    b) Making the hypothesis
    c) Testing the hypothesis using more observations, etc.
    Advantages of Deductive Method
    i) It is simple and easy to use and no involvement of software analysis.
    ii) Importance: is essential for economists

    Disadvantages of Deductive Method
    i) Logical fallacy :if the assumptions is logically imperfect, the whole process becomes faulty and would give wrong conclusions.
    ii) Deductive generalization will be in anger when state in wrong environment.

    Reply
  377. Avatar Ude Stella Melissa says:
    4 years ago

    Name: UDE STELLA MELISSA
    Department: PHILOSOPHY
    Reg No: 21858162EA
    Faculty: Social science

    Economic analysis involues the formulation of laws and generalisation which requires two methods
    They are:
    1: Deductive method
    2: Inductive method
    Economic generalisation describe the laws or statement of tendencies in various branches of economic such as production, consumption, exchange and distribution of income

    Deductive method: The Deductive method is also called abstract, analytical or a priority method. It means abstract approach to the derivation of economic generalisation and theories. The principal steps in the process of deriving economic generalisation through Deductive method are

    a) perception of the problem to be enquired into (have a clear idea of the problem)

    b) Defining precisely the technical terms and making appropriate assumptions often called postulates or premises

    C) Deducing hypotheses, that is derving conclusion from the premises through the process of logical reasoning

    D) Testing of hypotheses deduced

    2) Inductive method: This is also called empirical method dervies economic generalisation on the basis of experience and observation. Detailed data are collected with regards to a certain economic phenomenon effort is then made to arrive at certain generalisation which follow from the observation collected. The number of observations has to be large if it can yield a valid economic generalisation.
    There are three ways of which can be used for derving economic principles and theories

    They are:
    1) experiment
    2) observation
    3) statistical or econometric method

    They are various steps in Inductive method

    1) identification of the problem
    2) collection of data
    3) construction of economic theories
    4) make prediction and test them
    5) prediction are in agreement with fact

    Reply
  378. Avatar Nwafor Chukwubuikem John says:
    4 years ago

    Name: Nwafor Chukwubuikem John
    Reg number: 20684228EA
    Department: Nursing science
    Course code: ECO 121
    Course title: Principles Of Economics

    METHOD OF ECONOMICS ANALYSIS
    There are two methods of economics analysis which are used in investigation and formulation of law and principles in economics, namely:
    1: Deductive methods
    2: Inductive methods

    DEDUCTIVE METHOD OF ECONOMICS ANALYSIS
    This is known as the analytical abstract and a “PRIORI” method. We start with certain formal data and assumption, then arrive at certain conclusions by logical reasoning. Undisputed fundamental facts will be added to some assumption an then a theory will be formed. (This is also known as HYPOTHETICAL METHOD).
    Deductive method consists of three stages namely:
    1: observation
    2: Deductive reasoning
    3: instance and testing by means of further observations.

    ADVANTAGES OF DEDUCTIVE METHOD OF ECONOMICS ANALYSIS.
    1: Deductive method is exceedingly simple
    2: Deductive method obviates the necessity of experimentation.
    3: The Deductive method results in accuracy and exactness.

    DISADVANTAGES OF DEDUCTIVE METHOD OF ECONOMICS ANALYSIS.
    1: Deduction is based mainly on assumptions.
    2: In deduction, economists by the means of too much abstraction use their intellectual exercises only to produce “INTELLECTUAL TOYS” having little connection with reality.
    3: Deductive generalization will be dangerous when started on wrong premises if such generalization claim universal validity.

    INDUCTIVE METHOD OF ECONOMICS ANALYSIS
    Economists proceed from certain angle to problems of science to reduce the gulf between theory and practice.
    Induction is done by two forms, namely:
    1: Experimentation form
    2: Statistical form
    Facts are to be collected, arranged and then conclusions are drawn. Then general conclusion are then verified with reference to actual facts.

    ADVANTAGES OF INDUCTIVE METHOD OF ECONOMICS ANALYSIS.
    1: It is highly practical and realistic.
    2: It is helpful in verifying the conclusion of the Deductive method.
    3: Economic laws under this method are not universal but valid only under certain conditions.

    DISADVANTAGES OF INDUCTIVE METHOD OF ECONOMICS ANALYSIS
    1: Lack of balanced judgement could risk conclusion based on inadequate and irrelevant facts and data.
    2: Inductive process is a highly complex and complicated job when deals with collection of facts, warranting extraordinary understandings.
    3: induction alone will not deliver goods unless its is supplemented by means of deductive reasoning.

    Reply
  379. Avatar Ivoke Oluchi Praise says:
    4 years ago

    Name: Ivoke Oluchi Praise
    Reg No: 21288668HF
    Email Address: praiseoluchi709@gmail.comAny economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.

    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  380. Avatar Ekwegbara Everestar Chibugo says:
    4 years ago

    Ekwegbara Everestar Chibugo
    Reg no. 20860808HA
    email address; everestarchi@gmail.com

    The generalisations of economics like the laws of other sciences, state cause and effect relation­ships between variables and describe those economic hypotheses which have been found consistent with facts or, in other words, have been found to be true by empirical evidence. But a distinction may be drawn between a generalisation (law) and a theory.

    A law or generalisation just describes the relationship between variables; it does not provide any explanation of the described relation. On the other hand, a theory provides an explanation of the stated relation between the variables, that is, it brings out the logical basis of the generalisation. An economic theory or a model derives a generalisation through process of logical reasoning and explains the conditions under which the stated generalisation will hold true.

    Generalisations in economics have been derived in two ways:

    (1) Deductive Method,

    (2) Induc­tive Method.

    1- THE DEDUCTIVE METHOD of deriving economic generalisations. The deductive method is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalisations and theories.

    The principal steps in the process of deriving economic generalisations through deductive logic are:

    (a) Perception of the problem to be enquired into;

    (b) Defining precisely the technical terms and making appropriate assumptions, often called postulates or premises;

    (c) Deducing hypotheses, that is, deriving conclu­sions from the premises through the process of logical reasoning; and

    (d) Testing of hypothesis deduced.

    (a) Perception of the Problem:
    In any scientific enquiry, the analyst or theorist must have a clear idea of the problem to be enquired into. He must know the significant variables regarding whose behaviour and interrelationship he wants to derive generalisations. The perception of the problem is by no means an easy task.

    (b) Definition of Technical Terms and Making of Assumptions:
    The next step in the process of deriving economic generalisations is to define precisely and unambiguously the various technical terms to be used in the analysis as well as to state clearly the assumptions he makes to derive generalisation.

    (c) Deducing Hypotheses through Logical Deduction:
    The next step in deriving generalisations through deductive logic is deducing hypotheses from the assumptions or premises taken. A hypothesis describes relationship between factors affecting a phenomenon; it establishes the cause and effect relationship between the variables having a bearing on the phenomenon.

    Then, through logical process, hypothesis is deduced from the assumptions made. This logical reasoning may be carried out verbally or it may be conducted in symbolic terms using the language of what is known as symbolic logic.

    The geometric or graphic technique is also usually employed to deduce the hypotheses about the relationship between factors. Besides, the process of logical deduction may be done with the help of more formal mathematics.

    These days in almost all branches of modern economics, mathematics as tool of analysis for deriving economic theories and generalisations is being increasingly used. The use of mathematics in economic analysis proves extremely useful where geometrical methods make the analysis more complicated to comprehend. Besides, the use of mathematical method makes the derivation of economic hypotheses more rigorous and exact.

    It is worthwhile to note that in deriving analytically sound hypotheses, one should guard against committing logical fallacy in the process of logical deduction. For instance, it is inappropriate to conclude that A must be the cause of B, if A happens to precede B.

    Further, it is logically fallacious to argue that since there exists a high degree of correlation between the two factors, say between the supply of money and the general price level, the former must be the cause of the latter, unless the causation must be logically developed.

    (d) Testing or Verification of Hypotheses:
    Hypotheses obtained above have to be verified before they are established as generalisations or principles of economics. For the verification of hypotheses, economists cannot make controlled experiments, because they have to discover unifor­mities in behaviour patterns.

    The information regarding uncontrolled experience about the behaviour patterns concerning variables about man and the economy are quite amply available. The reliance by economists on uncontrolled experiences, however, does increase the number of observations required to verify the hypotheses or to establish the generalisations.

    Besides, the need to rely on uncontrolled experiences complicates the analysis and requires that facts must be carefully

    In the field of microeconomics, the well-established generalisations relate to the in­verse relationship between price and quantity demanded, the direct relation between price and quan­tity supplied, the tendency of the price of the product to be equal to the marginal cost under condi­tions of perfect competition, and the tendency for the wages to be equal to the value of marginal product under conditions of perfect competition and several others.

    In the field of macro-econom­ics, established generalisations relate to the determination of the level of national income by aggre­gate demand and aggregate supply in a capitalist economy, the multiple increase in income and employment as a result of a given initial increase in investment depending upon the size of marginal propensity to consume, the dependence of the amount of investment on the marginal efficiency of capital and the rate of interest and several others.

    It is worth noting that the absence of controlled experiments in economics affects the exactness of economic laws and generalisations.’ This means that the generalisations in economics are not as exact as those of physical sciences and they are therefore not universally applicable under all cir­cumstances. Because of the absence of controlled experiments economic generalisations lack in firmness, they are not easily accepted by all and even generalisations that are refuted by empirical evidence are not abandoned for good by all.

    In regard to flaming and testing of economic generalisations, two related distinctions must be borne in mind. First,functional relationship between economic variables and a historically se­quence of events must be distinguish.

    2- INDUCTIVE METHOD:
    The inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.

    But, it is worth mentioning that the number of observations has to be large if it can yield a valid economic generalisation. One should not generalise on the basis of a very few observations. There are three ways which can be used for deriving economic prin­ciples and theories.

    They are:

    (a) Experimentation,

    (b) observations,

    (c) statistical or econometric method.

    As has been mentioned above, the experimentation, that is, the use of contrived experi­ments is of limited applicability in economics. First, unlike natural sciences which are concerned with analysing the behaviour of either inanimate objects or obedient animals such as rats and rabbits under the influence of chloroform, economics deals with the behaviour of man who is quite fickle, wayward and unmanageable.

    Besides, man cannot tolerate the idea of being experimented upon, either individually or collectively. Secondly, an economic phenomenon is the result of multiplicity of factors and causes acting and interacting upon each other.

    Therefore, economic phenomenon does not repeat itself in the same uniform pattern. Numerous factors acting on an economic phe­nomenon ‘disturb’ it and make its exact repetition unlikely. Thus, as compared with the natural phenomena, economic phenomena are of less uniform pattern, less repetitive and more variable.

    Thirdly, economists study the economic phenomena in which pressure groups such as employ­ers’ associations, trade unions, farming lobby, political parties with their different ideologies play a crucial part and their activities render it difficult to make controlled experiments in the economic world. However, in spite of these difficulties, experimental method can be used in some fields.

    VARIOUS STEPS IN INDUCTIVE METHOD:
    Various steps are gone through in developing economic theories through inductive method. The first step, as in the deductive approach, is to identify the problem. The second step is defining technical terms and variables related to the problem.

    It is the next step which is peculiar to the inductive method, namely, the collection of data about the variables related to the problem and doing some preliminary thinking about the possible functional relationships between the relevant variables.

    The next important step in the construction of economic theories in this method is the processing of data collected and finding out what relations between the variables actually hold good. From this, a theory is developed which can be further refined and tested through statistical methods.

    EVALUATION IN INDUCTIVE METHOD
    The inductive method has another limitation in that there is a great risk of conclusions being drawn from insufficient data. To obtain generalisations through inductive method, one should take care that sufficient number of observations or data has been taken into account.

    The modern economists first derive economic hypotheses through the process of logical deduction and then empirically test them through statistical or econometric methods. Marshall rightly pointed out, “induction and deduction are both needed for scientific thought as the right and left foot are both needed for walking.”

    CONCLUSION: INTEGRATION OF TWO METHOD
    The modern economists first derive economic hypotheses through the process of logical deduction and then empirically test them through statistical or econometric methods. Marshall rightly pointed out, “induction and deduction are both needed for scientific thought as the right and left foot are both needed for walking.”

    Empirical studies made through statistical or inductive method without a theoretical hypothesis to serve as a guide for the selection of data are quite useless. The derivation of economic generalisations through the approach of deductive logic without empirically testing them through inductive method is also not quite proper.

    Empirical studies made in inductive ap­proach also bring to light significant economic facts or phenomena which require analytical expla­nation through deductive logic. For instance. Farm Management Studies in India in the mid- fifties led to the discovery of a fact that output per acre on the small-sized farms is higher than that on large farms.

    This led to the various theoretical explanations of the phenomenon observed in the empirical studies. On the other hand, a theory or hypothesis is first developed through deductive logic from some assumptions and then predictions based on the hypothesis are tested through inductive or statistical method. If the predictions are found to be constant with facts, the hypothesis or theory stands proved and if the predictions of the theory are found to be inconsistent with facts, it stands rejected.

    Reply
  381. Avatar Chukwukere Victory Onyinyechi says:
    4 years ago

    Name: CHUKWUKERE VICTORY ONYINYECHI.
    Reg no:22062654GF.
    Department: Philosophy
    Faculty: Social science.

    There are two basic methods of analysis used by economist and they include:
    (1) Deductive method of economic analysis,
    (2) Inductive method of economic analysis.

    DEDUCTIVE METHOD:this is otherwise known as prior method.
    Here, the economist starts from uncontroversial basic facts/assumptions and then arrive at the conclusion using logical analysis or our own analytical ability.
    This is done by first observing the task, making hypothesis and thereafter, using more observations to test the hypothesis.
    After this hypothesis is verified can we get general economic laws or principle.
    This method is important as it focuses on economic reasoning which is of paramount importance and it is a simple method as it doesn’t involve complex software analysis.

    INDUCTIVE METHOD:This method starts from facts to theory.
    Here information is collected, observations are made, hypothesis are formulated and principles are generated before moving towards providing evidence using economic theory and facts.

    Here it is based on facts. It is more realistic and reliable.
    Also since the economic environment is dynamic and always changing, relying on this method always helps economist reach a logical conclusion.
    For example:During an exam, in a class of 50 students, 45 students attempt the easiest questions. Out of the remaining 5,4 attempt the hardest questions while the last one is a dullard.
    From this observations, it can be seen that the students prefer the easiest questions as it reduces the stress of thinking or they’re probably scared of failure.

    In conclusion, though both methods have their weakness, they can be complimentary as well.

    Reply
  382. Avatar Ike somtochukwu Emmanuel.Reg No:2020/243151.Department of public administration and local Government says:
    4 years ago

    Method of Economic analysis refer you various analysis economist use for experiment.
    Basically we have two methods of Economics analysis.They include:
    1.Deductive Method
    2.Inductive Method

    1.Deductive method:They are also referred to as Abstract, analytical and a priori method and represents an analytical approach to the dedication of economic generalization and theories.This method connote the use of useful mathematical technique tot derive laws and theories of economics.it is less time consuming and as well less expensive.it steps used in the derivation of theories ranges from percepting the problem to be solved ,to Defining the technical term, to deducing hypothesis and the last which is testing of the hypothesis deduced.This method always extent the validity of generalised oom based on the ASSUMPTION made.

    2.Inductive method:This method also referred to as empirical method derives or get economic theories through the basis of Experience and observations.In this method,all detailed data are gathered in regard to a certain Economic theories and effort is then made to arrive of a certain generalisation which follow from the observation collected.The three ways of driving Economic principles and theories are through the means of EXPERIMENTATION, OBSERVATION AND ECONOMETRIC Means.

    Reply
  383. Avatar Ogbonnaya John Ogboyi says:
    4 years ago

    NAME: Ogbonnaya John Ogboyi
    DEPARTMENT: Pure and Industrial chemistry
    REG. NUMBER: 2019/241184
    COURSE CODE: ECO 101

    BASIC METHODS OF ANALYSIS USED BY ECONOMICS.
    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.
    1. Deductive Method
    This is also called prior reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions( build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    • observation of a task
    • making the hypothesis
    • testing the hypothesis using more observations
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive methods
    • It is a simple method, doesn’t involve the use of any complex software analysis, only simple deductive logic is required.
    • This method is important for economists as it forcuses upon economic reasoning which is a paramount importance.

    Disadvantages of Deductive methods
    In this method of reasoning, we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give worry conclusions. This the “logical fallacy” is a disadvantage of this method.

    2. Inductive method
    This type of reasoning flows from facts to theory first, we collect information and facts and then move towards providing evidence using economic theory and facts. This methods formulates principles using the sub- method- Observations, Experimentations, Statistical methods. Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    • observations
    • formulation of a hypothesis
    • generalizing principles
    • verifying against actual facts

    Advantages of Inductive Method
    • since it is based on facts, it is more realistic and reliable.
    • using Statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    • since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of Inductive Method
    • if the data is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    • it is a time-consuming process and thus expensive as well.
    • the collection of all the data is not an easy job and varies from person to person.

    Reply
  384. Avatar Jonathan Tracy Amarachi says:
    4 years ago

    Name:Jonathan Tracy Amarachi
    Department : philosophy
    Reg no:22054992JA
    Course: Economic 101
    The two basic economic analysis are deductive and inductive method.
    Deductive analysis is one of the method use by economist, it involves the hypothetical method. Because some assumptions may not be true or correspond to the fact you are trying to prove. In deductive analysis, economists have to describe the relationship between two variable (generalization) and then back these two variables with proves(that is, it must be tested and trusted). For instance an economist may say that there are 700 children in a classroom, that alone is his assumption which will generate to a hypothesis. Now in this hypothesis he has to prove if it’s actually 700 children in the classroom. And if he carry’s out his hypothesis and it turns out not to be 700 children but 701, he will have to reject his previous hypothesis. And if it’s true he will accept his hypothesis.
    Inductive analysis method :This economic analysis involves the method of driving economic generalization through the basis of experimentation, observation and statistical methods. That is to say an economist who uses this analysis have undergo a series of experiment to prove that what he/she say’s is actually true. For instance if I pull a 1000 naira note from my wallet, that means all the money in my wallet is 100 naira. Also inductive analysis make use of econometric packages like data.
    In summary deductive method of reasoning the hypothesis must be tested so as to reject or accept and inductive analysis there is already Data on the assumption.

    Reply
  385. Avatar NAME: JIDEOFOR VICTORIA EBERE.. DEPT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT.. MATRIC NUMBER: 2020/243202 says:
    4 years ago

    ECONOMIC ANALYSIS:
    THE BASIC METHODS OF ANALYSIS USED MY ECONOMISTS ARE:
    1: THE DEDUCTIVE METHOD
    2: THE INDUCTIVE METHOD..
    * DEDUCTIVE METHOD: This is also known as hypothetical, analytical, abstract or priori method. Deductive method consists in deriving new conclusions from general principles to particular facts or from truth established by other methods.
    It also involves the process of reasoning from certain laws, assumed to be true.
    Bacon described Deduction as a descending process in which we process from a general principal to it’s consequences..
    *STEEPS IN DEDUCTIVE METHOD:
    * Selecting the problem.
    * The formulation of assumptions on the basis of which the problem is to be explored.
    * The formulation of hypothesis through the process of logical reasoning whereby inferences are drawn.
    * Testing of hypothesis deduced.

    *INDUCTIVE METHOD: This is also known as empirical method. Inductive method involves drawing conclusion from a set of specific observations. It is also the process of reasoning from particular facts to general principles.
    Inductive method is also a process in which facts are collected, arranged and conclusions are drawn. The inductive method is realistic in the sense that it is based on facts and it explains them as they actually are. It also makes use of the statistical method.
    STEPS IN INDUCTIVE METHOD:
    * Identifying the problem.
    * Defining technical terms and variables related to the problem.
    * Collection of data about the variables related to the problem.
    * Processing of data collected.

    Reply
  386. Avatar Okonkwo Jessica chidera 2019/244902 says:
    4 years ago

    NAME : OKONKWO JESSICA CHIDERA
    REG. NO. : 2019/244902
    FACULTY : PHYSICAL SCIENCE
    DEPARTMENT : PURE AND INDUSTRIAL CHEMISTRY

    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.

    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    Reply
  387. Avatar Akaamu Chidubem Samuel says:
    4 years ago

    NAME:Akaamu Chidubem Samuel
    Reg no:22036628EF
    Faculty:Social Science
    Department:Public Administration And Local Government
    The usual methods of economic analysis studies — deduction and induction, are available to the economist.

    Both methods come from sciences viz., Logic. The deductive method involves reasoning from a few fundamental pro­positions, of assumption The inductive method involves collection of facts, informations and real essence or real and basic facts from them and testing the conclusions by other facts.
    features of the two methods of economic analysis
    Deduction and Induction:

    Deduction:

    i. Starts from the general and moves to the particular.

    ii. Begins with assumptions and moves to main or exact conclusions.

    iii. Produces a theory, and then examines the facts to see if they follow the theory
    eg:

    An angle in a straight line is 90- assumption)

    a straigh line has four angles– (A logical argument)

    Therefore this straight line has 180 degrees – (A particular conclusion)and with proves

    Induction:

    i. Starts from the main point and moves to the general.

    ii. Begins with main observations and moves to general defination.

    iii. Collects observations, then develops a theory to make up the fact

    Reply
  388. Avatar Okoye Emmanuel Obiajulu (2019/241188) says:
    4 years ago

    NAME: OKOYE EMMANUEL OBIAJULU
    MATRIC NUMBER:2019/241188
    DEPARTMENT: PURE AND INDUSTRIAL CHEMISTRY
    COURSE CODE: ECO 101
    COURSE TITLE: PRINCIPLES OF ECONOMICS

    According to Economist, Method of Economic Analysis is of two kind.
    Inductive method and Deductive method

    DEDUCTIVE METHOD
    Deductive method is known by variety of its names like analytical, abstract or prior method. This method is also known as hypothetical method. This method is based on the process of model building where conclusions are derived from general principles. When economic analysis is conducted through deductive method, the economic analyst has to proceed from general to particular. 

    The following steps are taken into consideration while conducting analysis through deductive method;

    Identification of problem to be probed into

    Definition of technical terms

    Deducing hypothesis from the assumptions

    Testing of hypothesis

    It means that the nature of problem should be clear to the analyst.

    It means that the technical terms used during the analysis must clearly be defined.

    It means that accurate hypothesis may be concluded from assumptions.

    It means that the validity of hypothesis in practical may be tested by the use of statistical techniques.

    INDUCTIVE METHOD
    The inductive method is also known as empirical method. According to this method we proceed from a particular state of affairs to general principles. It means that general principles are derived from the observed facts. In this method facts and figures of a particular nature of problem are collected and arranged in a systematic way from which the general principles are drawn. This method uses three tools for economic generalization i.e. experimentation, observation and statistical methods.

    Steps Involved In Inductive Method.
    Observation of the issue

    Formation of hypothesis

    Generalization and

    Verification

    Reply
  389. Avatar Nnam Charles Chiemerie says:
    4 years ago

    The basic methods of economic analysis are inductive method and deductive method.
    Inductive method involves the use of econometric packages to run experiments.It is pertinent that we understand the meaning of econometrics.Econometrics involves the use of statistical and mathematical methods to analyze data in a model.Inductive methods involves using particular facts and examples to form general rules and principles.
    Another method of economic analysis is deductive method .The economist describe and measure the exchanges they observe.Economists for example they describe how the structure of a market affects economic performance.Measurement in economics include measuring absolute and relative quantities and values.When measuring relative values we use index numbers.Economists how interactions arise and create costs and benefits.Economist try to explain the effects,or results,of economic transactions.
    Propose hypothesis,construct and apply models to test those hypothesis.For example an economist may propose that price rises are caused by excess demand ,and then attempt to construct a model of price that explains how excess demand can raise price.Economist gather data to put into the model .Predict behaviour based on these models.The economist can show that a fall in bank interest rate can lead to a fall in house prices in the short run

    Reply
  390. Avatar Omeje sopuluchukwu Lilian says:
    4 years ago

    NAME: Omeje sopuluchukwu Lilian
    REGISTRATION NUMBER:2020/243284
    DEPARTMENT: public Administration and local government
    FACULTY: social science
    Basic methods of analysis used by economist
    1: Deductive method
    2: Inductive method
    EXPLANATION
    Deductive method starts with the hypothetical method of assumption and moves to the particular conclusion.it provides an abstract approach to the derivation of economic theories and generalisation. it involves the process of reasoning from certain law of principles, which are assumed to be true to the analysis of facts.
    Inductive method is the observation of facts through collection of detailed data and the use of statistical method to arrive at economic generalisation established being increasingly made.
    In summary, the Inductive method and deductive method are not competitive but complementary in nature to help the economist. Inductive method and deductive method are both necessary for scientific thoughts

    Reply
  391. Avatar Nweze Chiemerie Divine says:
    4 years ago

    Nweze Divine Chiemerie
    PALG
    2020/243244
    Eco 101
    Deductive method: is an abstract and priori format and depicts an abstract approach to the derivation of economic theories. There are some fundamental steps in deriving economic generalization via deductive method
    a. Perception of the problem to be enquired into
    b. Explaining solely, the technical analogies
    c. Deduction of hypothesis
    d. Proof of deduced hypothesis
    MERITS OF DEDUCTIVE METHOD
    a. It saves time
    b. It’s cheap
    c. It’s essential to the construction of economic theories.
    d. With the aid of standard arithmetic operations,economists are able to introduce economic theories.
    DEMERIT
    a. It’s theoritical models are based on highly invalid assumptions.

    2. Inductive Method: precisely the empirical method,derives economic theories on the basis of experience and observations. There are 3 main ways which can be used for deriving economic principles. They are;
    a. Experimentation(economic pragmatism)
    b. Econometric techniques
    c. Observations.
    There are various steps in developing economic theories using inductive methods;
    a. Problem Identification
    b. Definition of logical and technical terms with variables affiliated to the problem
    c. Gathering of data about the variables related to the problem
    d. Processing the data and navigate the closeness between the variables, which actually hold good.
    Name: Nweze Divine Chiemerie
    Department: PALG
    Reg.No: 2020/243244
    Course Code: ECO 101
    Course title: Principles of Economics.

    Reply
  392. Avatar Uba chibuike victor says:
    4 years ago

    Name: uba chibuike victor
    Reg no:21459849CF
    Department: business education
    Faculty: vocational and technical education

    1.The deductive method: deductive method which also known as a hypothetical method involves reasoning from a few fundamental propositions, the truth which is assumed. It examines the possibilities to reach a specific logical conclusion

    2. The inductive method: this method deals with observation and measures, formulate some tentative hypotheses that we explore and finally end up developing some general conclusion and theories.

    Reply
  393. Avatar Ogwu Nora Chinecherem says:
    4 years ago

    Name : Ogwu Chinecherem Nora
    Email address: Ogwunora32@gmail.com
    Course: Eco 101
    Department: Nursing Sciences

    Methods of economic analysis include;
    Deductive method
    Inductive method

    Deductive method: it’s a form of reasoning which begins with observation which involves the economist to carefully observe the state of an economy , make hypothetical statements which will then lead to experiments and finally theorems are made .

    Inductive method: it’s a form of reasoning where people draw specific conclusions from general observations. Econmetric packages are commonly used by economists to conduct experiments. Packages like SAS, SPSS are used by economists to assist in the inductive reasoning

    Reply
  394. Avatar Nsofor Ekperebuike Leonard says:
    4 years ago

    Name: Nsofor Ekperebuike Leonard
    Registration number: 2020/242605
    Email: nsoforekperebuikeleonard@gmail.com
    Answer:
    The two method of economic analysis are the deductive and inductive method.
    1) Deductive method: Another name for this method is priori reasoning. In this method we start by assumption and after some logical reasoning and arrive at certain conclusion. In this method some hypothetical assumptions may not correspond to actually facts but near which may be used as premise for starting,reasoning and drawing conclusions.
    Stages in deductive method are:
    I) Observation of an issue: The economist most observation the particular issue he/she wants to analyze.
    II) making the hypothesis: After the economist has observation he/she draws a hypothesis from the observation.
    II) Testing the hypothesis: After the economist has observed and drawn the hypothesis he/she must test the hypothesis which requires more observation.
    If the observation and the conclusion of the experiment gets verified we can draw out an economic law or principle.
    Advantages:
    I) It is a simple method.
    II) It focuses on economic reasoning.
    disadvantages:
    I) If the assumption is fake the entire process becomes faulty and it will give wrong conclusion.

    Inductive method
    In this method we collect information and facts and move towards providing evidence using economic theories. This method allows economist to remove the vast difference in the theory and practice. The inductive method is basically on statistical form of experiment.
    Stages:
    I) observation: The economist most make observation on the issue he/she is experimenting on.
    II) Formation of a hypothesis: The economist must formulate a hypothesis based on the observation.
    III) Generalizing principles.
    IV) Verifying against actual facts.
    Advantages:
    I) It is realistic and reliable.
    II) It does not depend only on personal reasoning and logic but statistically which makes it more universally acceptable.
    Disadvantages:
    I) If the data used is faulty then the results will also be faulty.
    II) It is time consuming and expensive.
    III) Their is no particularly method of collecting data for the experiment.
    Their is no method in the two that is better than the other and the also the two method can be used together.

    Reply
  395. Avatar Ugwu Nnenna Mary says:
    4 years ago

    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.

    Methods of Economic Analysis

    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws. Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Deductive And Inductive Methods

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts. Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  396. Avatar Okafor Chiemelie Emmanuel says:
    4 years ago

    Okafor Chiemelie Emmanuel
    20186882BA
    chiemelie02@gmail.com

    What are the basic methods of analysis used by Economists ? Briefly and convincingly discuss each of them.

    Deductive method: Deductive method is known as the analytical and abstract method. In deductive method of Economic Analysis we proceed from the general to the particulars. This is known as an hypothetical method.
    Deductive method consist of three stages:
    1. Observation. 2. Deductive reasoning 3. Instance and testing by means of further observations.

    Inductive method: In this method, Economists proceed from a practical angle to problems of science to reduce the gulf between theory and practice. Induction is done by two forms:
    1. Experimentation form 2. Statistical form
    Facts are collected first, arranged and conclusions are drawn.

    Reply
    • Avatar Okafor Chiemelie Emmanuel says:
      4 years ago

      Name: Okafor Chiemelie Emmanuel
      Reg No: 20186882BA
      Email: chiemelie02@gmail.com
      Department: Nursing sciences.

      What are the basic methods of analysis used by Economists ? Briefly and convincingly discuss each of them.

      Deductive method: Deductive method is known as the analytical and abstract method. In deductive method of Economic Analysis we proceed from the general to the particulars. This is known as an hypothetical method.
      Deductive method consist of three stages:
      1. Observation. 2. Deductive reasoning 3. Instance and testing by means of further observations.

      Inductive method: In this method, Economists proceed from a practical angle to problems of science to reduce the gulf between theory and practice. Induction is done by two forms:
      1. Experimentation form 2. Statistical form
      Facts are collected first, arranged and conclusions are drawn.

      Reply
  397. Avatar Ubah Vivian chioma says:
    4 years ago

    THE METHODS OF ECONOMICS ANALYSIS
    This method is divided into two the Deductive And Inductive Methods
    DEDUCTIVE METHOD
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or law
    INDUCTIVE METHOD
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.Data is collected about a particular economic theory and then conclusions are drawn.the step involve are
    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    Name : ubah Vivian chioma
    Dept : economics education
    Jamb reg no: 20378256CA

    Reply
  398. Avatar Odo Juliet onyinyechi says:
    4 years ago

    Name: ODO JULIET ONYINYECHI
    Dept. Public administration
    Matric number: 2020/243304
    Email: odojuliet05@gmail.com

    Methods of analysis in economics

    1. Deductive method
    Deduction can also be called abstract which Means reasoning or inference from the general to the particular or from the universal to the individual. The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of facts.

    2. Inductive method
    Induction can also be called empirical “is the process of reasoning from a part to the whole, from particulars to generals or from the individual to the universal.” Bacon described it as “an ascending process” in which facts are collected, arranged and then general conclusions are drawn.

    Reply
  399. Avatar Haruna Ahmed Joseph. says:
    4 years ago

    Name: Haruna Ahmed Joseph
    Dept. Pure and Industrial Chemistry
    Reg no. 2019/241316
    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.
    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  400. Avatar Chukwuma Chukwudi Pascal says:
    4 years ago

    Name: Chukwuma Chukwudi Pascal
    Dept: public Administration and local Government
    Matric no.: 2020/243173
    The two methods of analysis are;
    i. Deductive method of reasoning
    ii. Inductive method of reasoning

    1. Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(hypothesis)using logical analysis or our own analytical abilities. In this kind of reasoning, we move from general to specific. The stages in deductive reasoning are:
    i. Observation of a task/ issue
    ii. Making the hypothesis
    iii. Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets confirmed we arrive at the general economic principles or laws.
    Some advantages of deductive methods include;
    1. It is a simple method, doesn’t involve the use of any complex software analysis, etc.
    2. only simple deductive logic is required.
    3. This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantage of deductive method
    This method of reasoning starts from assumptions, therefore, if the assumptions happen to be logically flawed the whole process becomes faulty and would give an invalid conclusion. So therefore, the logical fallacy is a disadvantage of this very method.
    ( Information– parttern –hypothesis–theory).

    2. Inductive method
    This method of reasoning flows from facts to theory. First, we retrieve information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    i. Observation
    ii. Formulation of a hypothesis
    iii. Generalizing principles
    iv. Verifying against actual facts.
    Advantages of Inductive Method
    i. Since it is based on facts it is more realistic and reliable.
    ii. Using statistical methods and experimentations makes the process more scientific, therfore, more acceptable universally rather than just depending on your own reasoning and logic.
    iii. Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    i. If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    ii. It is a time-consuming process and thus expensive as well.
    iii. The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  401. Avatar Ifeanyi Daniel Chinonso. Department: Pure and Industrial Chemistry. Reg No: 2019/244186 says:
    4 years ago

    There are basically two methofs of analysing economics which are the deductive and inductive analysis. The deductive method of analysing invovles;starting from general and then move to the particular, beginning with general assumptions and moving to particular conclusion, developing a theory and then examining the facts to confirm those theories. In other words deductive method involves creating a general assumption and then judging its authenticity with logical arguments by which after been sustained,initiates a logic conclusion. Inductive analysis on the other hand is closely the oposite of deductive analysis. It involves;starting from particular to general,beginning with a particular observation and moving to general explanations, inductive analysis collects observations and then develop a theory to fit the facts. The summary of inductive analysis include collecting a particular observation, supporting it with more observations and then making a general explanation.

    Reply
  402. Avatar ELEZIEANYA LUCKY EBERE says:
    4 years ago

    NAME: ELEZIEANYA LUCKY EBERE
    REG NO. 2019/ 241767
    DEPARTMENT: PURE AND INDUSTRIAL CHEMISTRY
    COURSE CODE: ECO 101
    ASSIGNMENT

    WHAT ARE THE BASIC METHODS OF ANALYSIS USED BY ECONOMISTS? BRIEFLY AND CONVINCINGLY DISCUSS EACH OF THEM.

    Economists adopt two basic approach in making generalizations, investigations and formulation of economic laws. They are
    The deductive and inductive methods.
    1.Deductive method:
    This method of analysis also known as analytical, apriori abstract method. It begins with assumptions and generalizations. Then by logical reasoning, a reasonable conclusion is reached. Usually starts with undisputable fundamental facts followed by assumptions, a theory is built around such facts.
    It is also known as a hypothetical method since the assumptions may not be actual facts but actual facts which may be used as premise for starting, reasoning and drawing conclusions.
    Steps to deductive analysis:
    The main steps involved in deductive analysis are outlined below
    (i)Observation of phenomena: In the process of deriving economic generalizations, the analyst must first observe the issue of inquiry.
    (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: the hypothesis is thus subjected to testing before being established as a law

    Advantages of the deductive method
    The following are the advantages of the deductive method
    (i) This method is near to reality, less time consuming and less expensive.
    (ii) There is exactness and clarity due to the use of mathematical techniques in deducing economic theories
    (iii) There is limited experimentation
    (iv) The method is simple because it is analytical.
    Disadvantages of deductive method
    (i)It is based on assumptions: most of the assumptions are half truths and may be misleading
    (ii) Professor Learner describes the deductive method as ‘armchair’ analysis. According to him, the premises from which inferences are drawn may not hold good at all times, and places. As such deductive reasoning is not applicable universally.
    (iii) The deductive method is highly abstract.

    2. Inductive method
    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. Economic generalizations on the basis of;
    (i) Experimentations
    (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.

    Steps of Inductive Method: as have been pointed out earlier are
    (i) Observation.
    (ii) Formation of hypothesis.
    (iii) Generalization.
    (iv) Verification.
    Advantages of Inductive Method:
    (i) It is based on facts as such the method is realistic.
    (ii) In order to test the economic principles, method makes statistical techniques. The inductive method is, therefore, more reliable.
    (iii) Inductive method is dynamic. The changing economic phenomenon are analyzed and on the basis of collected data, conclusions and solutions are drawn from them.
    (iv) Induction method also helps in future investigations.
    Disadvantages of Inductive Method:
    (i) Ample data are required for the generalizations to hold true
    (ii) The collection of data is daunting.The sources and methods employed in the collection of data differ from investigator to investigator. The results, therefore, may differ even with the same problem.
    (iii) The inductive method is time-consuming and expensive.

    Reply
  403. Avatar Odinaka Hope Amarachi. says:
    4 years ago

    NAME:ODINAKA HOPE AMARACHI.
    JAMB REGISTRATION NUMBER:20794589JA.
    FACULTY:SOCIAL SCIENCE.
    DEPARTMENT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT.

    METHODS OF ECONOMIC ANALYSIS.

    Any/every economic analysis involves the formulation of laws and generalizations through two methods namely:
    1. Deductive Method
    2. Inductive Method.

    1.Deductive Method:
    This is can also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific.
    NOTE: This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    STAGES IN DEDUCTIVE REASONING :

    *Observation of a task/ issue.
    *Making the hypothesis.
    *Testing the hypothesis using more observations, etc.

    MERIT OF DEDUCTIVE REASONING:
    1. Deductive method is exceedingly simple:For example, the law that the utility derived by an individual from a commodity goes on diminishing with every successive addition is a self-evident truth from which we may draw many logical conclusions, viz., larger the stock of money, the lower shall be the utility of money; rich persons have lesser marginal utility of money than the poor people; so taxes should not be levied on proportional basis. If taxes are levied proportionately, the sacrifice of the poor will be larger than the rich. This is against the Canon of equity, etc. Thus the principle of progressive taxation is derived from the law of diminishing utility through deductive reasoning.
    2. Deductive method obviates the necessity of experimentation:Economics being a social science, experimentation may not be available as in the case of physics or chemistry. So, the next best alternative to experiment is deductive reasoning. According to Boulding this method of deductive reasoning is the method of intellectual experiment.
    3. The deductive method results in accuracy and exactness in generalization, because of logical reasoning. The method gives a very high standard of precision in abstract economic reasoning.

    DEMERITS OF DUCTIVE REASONING:
    1. Deduction is based mainly on assumptions which are perfectly valid. If assumptions are wrong, generalizations made on the basis of wrong assumptions will be imperfect and invalid. All economic laws are based on too many assumptions where there are more scope for committing errors through wrong hypotheses.
    2. In deduction there is too much of abstraction and economists by means of their intellectual exercises produce only “intellectual toys” having little connection with reality.
    3. Deductive generalizations started on wrong premises will be dangerous when such generalization claim universal validity. Then such faulty generalizations are made use of in framing government policies, the results would be nothing but disastrous. For example, J.B.Say, claimed universal validity for his ‘Law of Markets’ in which he maintained that supply creates its own demand and there will not be over-production in the market. But this celebrated ‘Law of Market’ was torn to pieces when critics proved that Say’s Law was wrong and overproduction would be possible.

    2.Inductive Method:
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical method.
    NOTE:Data is collected about a particular economic theory and then conclusions are drawn.

    STAGES IN INDUCTIVE REASONING:
    *Observation.
    *Formulation of a hypothesis.
    *Generalizing principles.
    *Verifying against actual facts.

    MERITS OF INDUCTIVE REASONING:
    1. It is highly practical add realistic as it describes things as they are.
    2. It is helpful in verifying the conclusions of the deductive method.
    3. Economic laws under this method are not universal but valid only under certain conditions

    DEMERITS OF INDUCTIVE REASONING:
    1. When the investigators lack a balanced judgement there is the risk of drawing hurried conclusions based on inadequate and irrelevant facts and data.
    2. Collection of facts in the inductive process is a highly complex and complicated job warranting extraordinary understanding to alienate economic from non-economic factors.
    3. Mere induction alone will not deliver goods unless it is supplemented by means of deductive reasoning. Without deduction, the inductive method would result in producing only a mass of unrelated and unconnected facts.

    Reply
    • Avatar Okeke Andrew Chiemerie says:
      4 years ago

      Deductive reasoning
      This is also called a prior reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific.
      The stages in deductive reasoning are:
      Observation of a task/ issue
      Making the hypothesis
      Testing the hypothesis using more observations, etc.
      This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

      Advantages of Deductive Method
      It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
      This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
      Disadvantages of Deductive Method
      In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.
      Inductive Method
      This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
      Data is collected about a particular economic theory and then conclusions are drawn.
      The stages in this method are:
      Observation
      Formulation of a hypothesis
      Generalizing principles
      Verifying against actual facts.
      Advantages of Inductive Method
      Since it is based on facts it is more realistic and reliable.
      Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
      Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
      Disadvantages of Inductive Method
      If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
      It is a time-consuming process and thus expensive as well.
      The collection of all the data is not an easy job and varies from person to person. As to how they collect data.
      Name:Okeke Andrew Chiemerie
      Department:Nursing science
      Email:okekechiemerie2020@gmail.com

      Reply
    • Avatar Okoroafor Christabel Ebubechukwu says:
      4 years ago

      Name: Okoroafor Christabel Ebubechukwu
      Department: Economics.
      Reg no: 20630848IF
      Inductive and Deductive reasoning are the scientific approach to economic analysis.

      INDUCTIVE REASONING:
      DEFINITION: Inductive reasoning is method of reasoning where a set of observations of a particular experience are used to form more general set of propositions about those experiences i.e from specific to general or from data to theory. In inductive reasoning, research begins with a research question and that guides your collection of data. Once a substantial amount of data is collected, a testable or tentative hypothesis is generated, with additional data and that data becomes the basis for forming a social theory. With inductive, you begin by collecting data, so you are collecting empirical observations about the social world, based on these empirical observations you are forming a hypothesis, which you then use to let additional data to develop a theory by looking for patterns and looking for a theory that explains the patterns.

      EXAMPLE: Research question using inductive reasoning:-
      • How do undergraduate students view the causes of homelessness? What do they perceive as the solutions to homelessness? ( Phillips, 2015; Journal of Poverty)
      This is an inductive reasoning because rather than identifying an existing social theory, with this research question, you would begin by collecting data from a group of undergraduate students and understand how they view the causes of homelessness and what they perceive as the solution to homelessness and these observation might lead to develop a hypothesis, where you test the data and you use that information to test a theory.

      DEDUCTIVE REASONING:
      Deductive reasoning is a method of reasoning that moves from broader generalisation and theories to more specific observations. In Deductive reasoning, we begin by reviewing a social theory, economists studies what others have done, reads existing economic theories of whatever phenomenon they studying and based on that economic theory, you form a hypothesis which you test with empirical data and then you either confirm or refute that hypothesis based on your analysis of the data. Deductive method begins with a theory-driven hypothesis, so there might be an existing theory to explain a particular topic and you form a hypothesis that is based on the economic theory, which guides your data collection and analysis. You might decide to design a particular survey to collect information about a set of variables in your hypothesis which you then analyse and that feeds back to the economic theory because you might add to or revise a particular theory based on your economic analysis.

      EXAMPLE: Research question using Deductive reasoning:-
      • Are perceptions of discrimination among young adults related to psychological distress? Does discrimination help to explain racial differences in depression? ( Taylor, 2002; Social psychology Quarterly)
      This is Deductive reasoning the question and the hypothesis that can be formulated from them are sort of drawn from an existing social theory; The Stress Process thoery: that specifies how stress is related to health and how social characteristics affect exposure to stress and how personal social resources moderate between stress and health. Based on the “Stress Process” theory, this researcher was able to conduct a study to form a hypothesis about one form of social stress discrimination and how it relates to psychological distress. This is deductive, in the sense that there was already a pre-existing theory, the researchers formed a hypothesis, collected data in the form of a survey, and used that data to analyse and test that hypothesis and update the existing social theory.

      Reply
    • Avatar EBERECHUKWU SUCCESS CHINONYEREM says:
      4 years ago

      Name: EBERECHUKWU SUCCESS CHINONYEREM
      Matric num: 2020/243273
      Dept: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT
      Email: eberechukwusuccess5@gmail.com

      Methods of economic analysis
      Basically any method of economic analysis has to do with the generalization and formulation of laws through two methods which are:
      1.Deductive Method
      2.Inductive Method
      The Deductive Method : This Method can also be referred to as priori reasoning. It begins from unchallenged elementary assumption or facts and then arrive at a conclusion using either logical analysis or our personal analytical abilities. This kind of reasoning ranges from general to specific reasoning. In deductive reasoning there are practically different stages we go through before achieving a result and this includes
      * Making hypothesis using more observations.
      It is worthy of note to know that deductive reasoning gives us a hypothesis and if this hypothesis gets verified, we get general economic principles.
      One of the advantage of deductive reasoning is that it is important for economists all over the world because it focuses mainly on economic reasoning which is of utmost importance. And also one of the disadvantages of deductive reasoning is that if such assumption happens to be logically flawed,the whole process becomes faulty and would give wrong conclusions.

      Inductive Method: In this kind of reasoning,it flows from facts to theory. Firstly we take facts and then move towards providing evidence using economic theory and facts. The stages in this Method includes the following namely:
      *Verifying against actual facts
      *Observations
      *Formulation of a hypothensis
      *Generalizing principles/laws.
      One of the advantage is that since it’s based on facts,it is more realistic and reliable while one of the disadvantage is that it is a time consuming process and thus expensive as well.

      Reply
    • Avatar Ezukwoke precious Anezi says:
      4 years ago

      Name:Ezukwoke precious Anezi
      Reg no:2020/243228
      Department: public administration and local government

      There are two method of reasoning in theoretical economics. They are the deductive and inductive methods.

      Deductive:
      deductive means reasoning or inference from the general to the particular or from the universal to the individual. The deductive method derives new conclusion from fundamental assumptions or from truth established by other method. It involves the process of reasoning from certain laws or principals. Which are assumed to be true, to the analysis of facts. The deductive method is also called the abstract, analytical and a priori method. We start from unchallenged elementary or rudimentary assumptions and then arrive at conclusions.

      1. Indictive:
      ” Is The process of reasoning from a part to the whole, from particulars to generals or from the individual to the individual”. Becon describe it as “an ascending process” in which fact are collected, arranged and than general conclusion are drawn.

      Reply
  404. Avatar Ezeonyili Judith chisom says:
    4 years ago

    BASIC METHODS OF ANALYSIS USED BY ECONOMIST
    Economist are used to constructing complicated model of human behavior which begins with a range of assumptions. Economist needs to use both deduction and induction methods in their work, because Economics is a very deductive subject.
    There are some basic methods of analysis used by Economist,
    Deductive method: It starts from the general assumption and moves to the particular conclusion. It provides an abstract approach to the derivation of economic theories and generalization.An Economist needs preception of problems as an approach/step in “method of analysis”.
    Inductive method:It deals with reasoning flowing from facts to theory .It collect observation, then develop a theory to fit the facts. Unlike deductive method ,it usually start from the particular conclusion and moves to a general assumption. Observation and experimental methods can be used as a sub method in basic methods of analysis.

    Reply
  405. Avatar Ukwuorji Esther Oluchi says:
    4 years ago

    Name: Ukwuorji Esther Oluchi
    Reg no: 21290190GF
    Department: Public administration and local government
    Faculty: Social sciences

    Methods of economic analysis
    1. Deductive method
    2. Inductive method

    Deductive method is also known as hypothetical method for some of the assumptions may not correlate to the actual facts , which may be used as premise for starting , reasoning and drawing conclusions. In deductive method, issues are observed first then hypothesis are made and the hypothesis are tested using more observations. If the hypothesis are tested and verified with relevance to facts then we have valid economic law. The deductive method results in accuracy because of logical thinking

    Inductive method is generally associated with the statistical forms of inductions. Induction is done by two forms; experimental form and statistical form. Facts are collected first, arranged and conclusions are drawn, then the conclusions are verified to become actual facts. Inductive method is highly practical and realistic as it describes things the way they are, it helps in verifying the conclusions of the deductive method.

    In a nutshell, the deductive method and inductive method are not competitive but complementary in nature to help the economist.
    Inductive method and deductive method are both necessary for scientific thoughts.

    Reply
  406. Avatar TABANSI BLESSING CHINEDU says:
    4 years ago

    NAME: TABANSI BLESSING CHINEDU…
    REG NUMBER: 21435692GF
    DEPARTMENT: NURSING SCIENCE
    EMAIL: Currentblessing50@gmail.com..

    METHODS OF ECONOMIC ANALYSIS…..
    Economic analysis involves two (2) methods, namely:
    1. Deductive method.
    2. Inductive method.
    DEDUCTIVE METHOD
    This is also called a “Priori reasoning”….
    We start by perceiving the problem, Give an analysis into the problem, Observe the problem, define precisely the technical terms, “based on the definition” you make Hypothesis (assumption), then the assumption at this stage becomes a postulate, Test your hypothesis ( this is to know if it will be accepted or rejected), then if the Hypothesis gets verified it becomes a THEORY……..

    INDUCTIVE METHOD.
    I. Observation: you observe your hypothesis…
    II. Experimentation: this uses Econometric packages like E-views, Strata.
    III. Statistical method: Econometric packages are used here to run regression..
    IV. Collection and Interpretation of Data
    observed.
    IV. Conclusion…

    Reply
  407. Avatar Ugwu Miriam Ebere says:
    4 years ago

    Question: what are the basic methods of analysis used by economists? Briefly and convincingly discuss each of them.

    Firstly methods of used simply implies how things are done in an oderly manner .
    The basic methods of economic analysis or reasoning are ; DEDUCYIVE NETHODS AND INDUCTIVE METHODS.
    DEDUCTIVE METHODS: it can be seen as a logic of confirming or researching from one or more statements to reach a statistical and logical conclusion.
    It is otherwise , best defined and known as an abstract , analytical and a prior method and represents an abstract approach to the derivation of economic generalizations and theories.
    The principal steps into generalizing economics through deductive methods includ:
    1. Perception: simply means that way we see things and how we interpret them . Drawing to economic scientific analysis , economists must be aware of the problem that they want to inquire . he must know the significant variable for the generalization to statistically evaluate the hypothesis and theories .
    ii. Definition of technical terms and making of assumptions: the next step is to precisely state the various technical terms to be used in the analysis and also state clearly the assumptions he makes to drive generalizations. And we should also remember that interrelationships should also be put into analizations . cause behaviours varies a lot . both positively and negatively through through assumptions also known as postulates and hypothesis
    ii. Deducing hypothesis through logical deduction: the next step is to deduce hypothesis from your already made assumptions and promises taken. It is helps to establish the variables having a weigh on the phenomenon
    Iv. Testing or verification of hypothesis : the hypothesis having been assumed and decuded, have to undergo some testing in all areas to be clearly verified . it also has to discover uniformities in behavioural patterrns of man. We cannot make experiments with man under controlled conditions such as in laboratory as physical scientist or biologists do in laborstories using plants and animals there for we economists have to rely on uncontrolled observation and experiences.
    The deductive methods are real, simple , powerful, exacat , indispensible and universal.

    2. INDUCTIVE METHODS OR INDUCTIVE REASONING: these methods also known as empirical methods that derives generalizations on the Basis of observation. It also involves the collection of facts , drawing analytic conclusions with them and testing it with other Facts .
    There are basically three ways for deriving economic principles and theories. They are :
    1. Experimentation: experimentation according to english dictionary, is the process of performing a scientific procedure , especially in a laboratory, to determine something. Drawing it on economic analysis, the use of contrived experiment is limited applicability in econimics. This is so because economics has its emphasis mostly about human behavior that are fickle , wayward and unambigiosly unmanageable.
    2 . Observation: data is used to make observation about particular facts concerning the problem.
    3. Econometric methods: makes use of statistical tools and economic theories in combination to estimate the economic variable and to forecast the intended variables.
    Others may include the problem, data , and generalization.
    Inductive method is realistic, future inquiries , statistical methods, dynamic and his tricks relative.

    Reply
    • Avatar Obiano Jennifer kosisochukwu says:
      4 years ago

      NAME: OBIANO JENNIFER KOSISOCHUKWU
      DEPARTMENT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT
      MATRIC NO:2020/243270
      THE TWO METHODS OF ECONOMIC ANALYSIS
      1.DEDUCTIVE REASONING: Deductive reasoning is also called abstract approach to the derivation of economic generalization and theories.
      Deductive reasoning also Deductive logic is a process of reasoning from one or more statement to reach a logical conclusion, it start with a general idea and reaches a specific conclusion. The deductive reasoning also has useful mathematical techniques which can be employed to derive laws and theories of economics, it is less time consuming and less expensive and also a useful method in constructing economic theories.
      Deductive reasoning is mostly used for :
      a. observation of task/issues
      b.making the hypothesis
      c.testing the hypothesis using more observation.
      2.INDUCTIVE REASONING: Inductive reasoning is also called empirical method derives economic generalization on the basis of experience and observations. It is a type of reasoning that involves drawing a general conclusion from a set of specific observations.Inductive reasoning is a method of reasoning in which the premises are viewed as supplying some evidence but not full assurance of the the truth for conclusion, It makes broad generalization from specific observation and extends this idea to weaker argument.
      In inductive reasoning we begin with specific observation and measures, it can be used to draw a casual link between a premises and hypothesis, it involves forming generalization based on specific incident experienced.
      Deductive and inductive reasoning makes smarter arguments , better decisions and stronger conclusion.

      Reply
  408. Avatar Aniekezie Blessing says:
    4 years ago

    NAME: Aniekezie Blessing Ijeoma.
    MATRIC NUMBER: 2020/243148
    DEPARTMENT: Public Administration and Local Government.
    Email address: aniekezieblessing@gmail.com

    Deductive method: This is the logical method that deals with abstract and analytical method to derive economic generalizations. Using the deductive method to analyze economics moves from the perception of the problem, where the analyst must figure out the problem and decide on whose behavior to base the generalizations on, to defining technical terms and making appropriate assumptions. This is the next step where the analyst is expected to define various technical terms as well as making precise assumptions.

    Deduction of hypotheses from the assumptions made and testing/verifications of these hypotheses, through uncontrolled experience and observation, is crucial. Analysts use this method because of how theories can be derived without any detailed data collection and analysis.

    Inductive method: also called empirical method is based on experiences and observation to derive economic generalizations. Experiments are one of the ways analysts use the inductive method; through observing the behavior of man in his natural element. This almost links to the other way analysts use this method, Observation, that is, observing the behavior of man while carrying out these experiments.

    Reply
  409. Avatar Ugwuoke Cynthia Ada (2019/241935) says:
    4 years ago

    Name: Ugwuoke Cynthia Ada
    2019/241935

    Pure and Industrial chemistry

    1. Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    Disadvantages of Deductive Method

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    2. Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of Inductive Method

    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data

    Reply
  410. Avatar Agbaraonye Nkeakam Tammy. Reg No : 20644960BF. Department: Nursing Sciences says:
    4 years ago

    The basic methods of analysis used are divided into two.They include;. Deductive method and Inductive method.
    1: DEDUCTIVE METHOD; This method is also known as ANALYTICAL ABSTRACT method.This method starts with undisputed fundamental facts and after adding some assumptions it builds up into a theory.
    A Deductive method consists of three stages.they include; Observation, Deductive reasoning,Instance testing by means of further observation.

    2: INDUCTIVE METHOD; In this method, Economists proceed from a practical angle to problems of science to reduce the gulf between theory and induction is done by two forms; Experimentation and Statistical form.Facts are collected first,arranged and conclusions are drawn.Then,these general conclusions are further verified with reference to actual facts.

    In general, inductive method helps in verifying the conclusions of the Deductive methods.Therefore,the two methods, Deductive and inductive are not COMPETITIVE but COMPLEMENTARY in nature.

    Reply
  411. Avatar Anih Chiamaka says:
    4 years ago

    Name: Anih chiamaka Esther
    Dept: PALG
    Reg no: 20631439HF

    METHODS OF ECONOMICS ANALYSIS
    Any economics analysis involves the formulation of laws and generalization through two methods:
    (1) DEDUCTIVE METHOD
    (2) INDUCTIVE METHOD

    DEDUCTIVE METHOD: this is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumption/ facts and then arrive at conclusion ( build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific . The stages in deductive reasoning are:
    • observation of a task/ issue
    • making the hypothesis
    • testing the hypothesis using More observations.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    ADVANTAGE OF DEDUCTIVE METHOD
    • it is simple method, doesn’t involves the use of any complex software analysis,e.t.c only simple deductive logic is required.
    • this method is important for economist as it focuses upon economic reasoning which is of Paramount importance.
    DISADVANTAGE OF DEDUCTIVE METHOD
    • In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process become faculty and would give wrong conclusion.

    INDUCTIVE METHOD
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move toward providing evidence using economic theory and facts. This method formulate principles using the sub- methods- observations, experiments, statistical methods .Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    • observation
    • formulation of a hypothesis
    • generalizing principles
    • verifying against actual facts
    ADVANTAGE OF INDUCTIVE METHOD
    • Since it is based on facts it is more realistic and reliable.
    • using statistical methods and experiment makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    • since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusion.
    DISADVANTAGE OF INDUCTIVE METHOD
    • if the data used is insufficient and faculty it would lead to faculty conclusion, making the hypothesis less reliable.
    • it is a time consuming process and this expensive as well.
    • the collection of all data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  412. Avatar Okoye Maurice Sopuruchi. Reg No: 2019/246747 says:
    4 years ago

    The Basic Methods of Economic Analysis used by Economist are Deductive Method and Inductive Method
    Economic generalizations describe the laws or statements of tendencies in various branches of economics such as production, consumption, exchange and distribution of in­come.
    The generalizations of economics like the laws of other sciences, state cause and effect relation­ships between variables and describe those economic hypotheses which have been found consistent with facts or, in other words, have been found to be true by empirical evidence. But a distinction may be drawn between a generalization (law) and a theory.
    1. Deductive Method of Economic Analysis:
    The deductive method is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalizations and theories.
    The principal steps in the process of deriving economic generalizations through deductive logic are:
    (a) Perception of the Problem:
    In any scientific enquiry, the analyst or theorist must have a clear idea of the problem to be enquired into. He must know the significant variables regarding whose behavior and interrelationship he wants to derive generalizations. The perception of the problem is by no means an easy task.
    (b) Definition of Technical Terms and Making of Assumptions:
    The next step in the process of deriving economic generalizations is to define precisely and unambiguously the various technical terms to be used in the analysis as well as to state clearly the assumptions he makes to derive generalizations.
    Assumptions may be behavioral pertaining to the behavior of the economic variables or they may be technological relating to the state of technology and the factor endowments. The crucial assumptions are made on the basis of observations or introspection.
    (c) Deducing Hypotheses through Logical Deduction:
    The next step in deriving generalizations through deductive logic is deducing hypotheses from the assumptions or premises taken. A hypothesis describes relationship between factors affecting a phenomenon; it establishes the cause and effect relationship between the variables having a bearing on the phenomenon.
    Then, through logical process, hypothesis is deduced from the assumptions made. This logical reasoning may be carried out verbally or it may be conducted in symbolic terms using the language of what is known as symbolic logic.
    The geometric or graphic technique is also usually employed to deduce the hypotheses about the relationship between factors. Besides, the process of logical deduction may be done with the help of more formal mathematics.
    (d) Testing or Verification of Hypotheses:
    Hypotheses obtained above have to be verified before they are established as generalizations or principles of economics. For the verification of hypotheses, economists cannot make controlled experiments, because they have to discover unifor­mities in behavior patterns of man.
    We cannot make experiments with man under controlled con­ditions, such as in laboratories as physical scientists make experiments with inanimate objects of nature and biologists make these with animals and plants. Therefore, economists have to rely on uncontrolled experience and observations.
    The information regarding uncontrolled experience about the behavior patterns concerning variables about man and the economy are quite amply available. The reliance by economists on uncontrolled experiences, however, does increase the number of observations required to verify the hypotheses or to establish the generalizations.
    Merits and Demerits of Deductive Method:
    With the aid of rigorous mathematical logic, economic theories can be developed through the process of deduction which can successfully explain economic phenomena. Secondly, through deductive logic useful economic theories can be derived without the tenuous and detailed collection and analysis of data which are required under the inductive method.
    Thus, as compared to inductive method, deduction is less time-consuming and less expensive. Thirdly, in view of the limited scope for controlled experimentation in economics, the method of deduction is extremely useful method of constructing economic theories. This is because several forces act simultaneously on an economic phenomenon and it is not possible to eliminate some of these by means of a controlled experiment.
    This indicates the crucial importance of deductive logic for building up economic principles or theories. Fourthly, the use of sophisticated mathematical methods in the deductive approach enables the economists to introduce accuracy and exactness in economic principles and theories.
    In spite of the above-mentioned merits, shortcomings of the deductive approach should not be overlooked. The use of deductive method in deriving economic generalizations requires the use of a high-level competence in logic and theoretical abstraction.
    Further, a great demerit of deductive approach is that with it highly sophisticated theoretical models based on highly unrealistic assumptions may be developed which do not have any operational significance. Indeed, such highly irrelevant analytical models with little empirical content and incapable of being used for policy formulation have in fact been developed by economists. Such models are no more than mere “intellectual toys”. If economics is to serve as an instrument of social betterment, building of such theoretical models having no opera­tional use should be avoided.
    Lastly, in the derivation of economic hypotheses and conclusions through deductive logic, as­sumptions play a crucial role. If the assumptions made are such that when on removing them, economic hypothesis based on them is refuted, then making of these assumptions is not valid.
    Thus, one who uses deductive approach should always keep in mind to what extent the validity of generalizations derived depends on the assumptions made. For instance, the Keynesian macroeconomic analysis is based upon the assumption of a depression-ridden capitalist economy with a lot of excess productive capacity.
    Therefore, a positive harm has been done in applying the Keynesian theories in the context of developing countries such as ours where the assumptions made by Keynes do not hold good. Hence, mere “deductive arm-chair analysis” should be avoided, if the scientific character of economics is to be maintained.
    2. Inductive Method of Economic Analysis
    The inductive method which is also called empirical method derives economic generalizations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalizations which follow from the observations collected.
    But, it is worth mentioning that the number of observations has to be large if it can yield a valid economic generalization. One should not generalize on the basis of a very few observations. There are three ways which can be used for deriving economic prin­ciples and theories.
    They are:
    (a) Experimentation,
    (b) observations,
    (c) statistical or econometric method.
    As has been mentioned above, the experimentation, that is, the use of contrived experi­ments is of limited applicability in economics. First, unlike natural sciences which are concerned with analyzing the behavior of either inanimate objects or obedient animals such as rats and rabbits under the influence of chloroform, economics deals with the behavior of man who is quite fickle, wayward and unmanageable.
    Besides, man cannot tolerate the idea of being experimented upon, either individually or collectively. Secondly, an economic phenomenon is the result of multiplicity of factors and causes acting and interacting upon each other.
    Therefore, economic phenomenon does not repeat itself in the same uniform pattern. Numerous factors acting on an economic phe­nomenon ‘disturb’ it and make its exact repetition unlikely. Thus, as compared with the natural phenomena, economic phenomena are of less uniform pattern, less repetitive and more variable.
    Thirdly, economists study the economic phenomena in which pressure groups such as employ­ers’ associations, trade unions, farming lobby, political parties with their different ideologies play a crucial part and their activities render it difficult to make controlled experiments in the economic world. However, in spite of these difficulties, experimental method can be used in some fields.
    For instance, experiments have been conducted to find out which law of production is valid, that is, whether law of diminishing returns, law of constant returns or law of increasing returns operates in the real world. Besides, public undertakings or big industrial firms often try to assess the effect of the changes in the prices of their products on the demand for it and thus find out the demand elastic­ity of their products.
    Various Steps in Inductive Method:
    Various steps are gone through in developing economic theories through inductive method. The first step, as in the deductive approach, is to identify the problem. The second step is defining technical terms and variables related to the problem.
    It is the next step which is peculiar to the inductive method, namely, the collection of data about the variables related to the problem and doing some preliminary thinking about the possible functional relationships between the relevant variables.
    The next important step in the construction of economic theories in this method is the processing of data collected and finding out what relations between the variables actually hold good. From this, a theory is developed which can be further refined and tested through statistical methods.
    Once the theory has been developed one can make predictions on its basis, as is done in the deductive approach. If predictions of theory are in agreement with the facts and actual behavior of the economy, then a new reliable theory has been developed. If a new theory explains “how things work” better than the existing ones, it replaces them.
    Evaluation of Inductive Method:
    As has been explained above, observations of facts through collection of detailed data and the use of statistical methods to arrive at economic generalizations establishing relationship between facts are being increasingly made.
    Some of the recent researches in the field of macroeconomics, such as the nature of consumption function describing the relation between income and consump­tion, the principle of acceleration describing the factors which determine investment in the economy have been obtained through the use of mainly inductive method.
    The inductive method has another limitation in that there is a great risk of conclusions being drawn from insufficient data. To obtain generalizations through inductive method, one should take care that sufficient number of observations or data has been taken into account.
    Besides, the collection of data itself is also not an easy task. And a researcher who wants to employ the inductive method to arrive at generalizations must have good knowledge of statistical methods, that is, he must know the art of collecting, processing and inter­preting data. It is obvious that as compared with the deductive method, the inductive method is time-consuming and expensive.

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  413. Avatar Anichebe Ifunanya Florence, Reg No:20192476BA, Department of Philosophy says:
    4 years ago

    The deductive method involves reasoning from a few fundamental prepositions, the truth of which is assumed.Deductive method also means abstracting, analytical approach to the derivation of economic generalization and theories. The inductive method involves the collection of facts, drawing conclusions from them and testing the conclusions by other facts. Inductive method also derive economic generalization on the basis of experience and observations. Inductive method also used what we called Econometric package for deriving economic principles and theories.

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  414. Avatar Obelu Victoria obianuju. says:
    4 years ago

    Reg. Number. 20652694BA. OBELU VICTORIA OBIANUJU. obeluobianuju@gmail.com. ECO/PHIL. The two methods of economics analysis are deductive and inductive method.
    Deductive method is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalization and theories..

    Inductive method which is also called empirical method derives economics generalizations on the basics of experience and observations.

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  415. Avatar Ifeanyi Daniel Chinonso says:
    4 years ago

    The two methods of analysis economics are deductive and inductive analysis. The deductive analysis basically deals withe the generalizational and thereotical aspect of economics. That is where economists study relationships between variables of the economy and find proofs to defend those relationships. The deductive analysis is basically the major part of analysis that centers on the procedures by which economist handle and attend to issues arising in the economy. While the inductive analysis majors on the use of econometric packages.

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  416. Avatar NANGIBO MATILDA TONYE says:
    4 years ago

    Reg. No. 20683691GF
    Public administration and LG

    There are two method of reasoning in theoretical economics. They are the deductive and inductive methods.

    As a matter of fact, deduction and induction are the two forms of logic that help to establish the truth.

    The Deductive Method:
    Deduction Means reasoning or inference from the general to the particular or from the universal to the individual. The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of facts.

    Then inferences are drawn which are verified against observed facts. Bacon described deduction as a “descending process” in which we proceed from a general principle to its consequences. Mill characterised it as a priori method, while others called it abstract and analytical.

    Deduction involves four steps: (1) Selecting the problem. (2) The formulation of assumptions on the basis of which the problem is to be explored. (3) The formulation of hypothesis through the process of logical reasoning whereby inferences are drawn. (4) Verifying the hypothesis. These steps are discussed as under.

    (1) Selecting the problem:

    The problem which an investigator selects for enquiry must be stated clearly. It may be very wide like poverty, unemployment, inflation, etc. or narrow relating to an industry. The narrower the problem the better it would be to conduct the enquiry.

    (2) Formulating Assumptions:

    The next step in deduction is the framing of assumptions which are the basis of hypothesis. To be fruitful for enquiry, the assumption must be general. In any economic enquiry, more than one set of assumptions should be made in terms of which a hypothesis may be formulated.

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    (3) Formulating Hypothesis:

    The next step is to formulate a hypothesis on the basis of logical reasoning whereby conclusions are drawn from the propositions. This is done in two ways: First, through logical deduction. If and because relationships (p) and (q) all exist, then this necessarily implies that relationship (r) exists as well. Mathematics is mostly used in these methods of logical deduction.

    (4) Testing and Verifying the Hypothesis:

    The final step in the deductive method is to test and verify the hypothesis. For this purpose, economists now use statistical and econometric methods. Verification consists in confirming whether the hypothesis is in agreement with facts. A hypothesis is true or not can be verified by observation and experiment. Since economics is concerned with human behaviour, there are problems in making observation and testing a hypothesis.

    For example, the hypothesis that firms always attempt to maximise profits, rests upon the observation that some firms do behave in this way. This premise is based on a priori knowledge which will continue to be accepted so long as conclusions deduced from it are consistent with the facts. So the hypothesis stands verified. If the hypothesis is not confirmed, it can be argued that the hypothesis was correct but the results are contradictory due to special circumstances.

    Under these conditions, the hypothesis may turn out to the wrong. In economics, most hypotheses remain unverified because of the complexity of factors involved in human behaviour which, in turn, depend upon social, political and economic factors. Moreover, controlled experiments in a laboratory are not possible in economics. So the majority of hypotheses remain untested and unverified in economics.

    Merits of Deductive Method:
    The deductive method has many advantages.

    (1) Real:

    It is the method of “intellectual experiment,” according to Boulding. Since the actual world is very complicated, “what we do is to postulate in our own minds economic systems which are simpler than reality but more easy to grasp. We then work out the relationship in these simplified systems and by introducing more and more complete assumptions, finally work up to the consideration of reality itself.” Thus, this method is nearer to reality.

    (2) Simple:

    The deductive method is simple because it is analytical. It involves abstraction and simplifies a complex problem by dividing it into component parts. Further, the hypothetical conditions are so chosen as to make the problem very simple, and then inferences are deduced from them.

    (3) Powerful:
    It is a powerful method of analysis for deducing conclusions from certain facts. As pointed out by Cairnes, The method of deduction is incomparably, when conducted under proper checks, the most powerful instrument of discovery ever wielded by human intelligence.

    (4) Exact:

    The use of statistics, mathematics and econometrics in deduction brings exactness and clarity in economic analysis. The mathematically trained economist is able to deduce inferences in a short time and make analogies with other generalisations and theories. Further, the use of the mathematical-deductive method helps in revealing inconsistencies in economic analysis.

    (5) Indispensable
    The use of deductive method is indispensable in sciences like economics where experimentation is not possible. As pointed out by Gide and Rist, “In a science like political economy, where experiment is practically impossible, abstraction and analysis afford the only means of escape from those other influences which complicate the problem so much.”

    (6) Universal:

    The deductive method helps in drawing inferences which are of universal validity because they are based on general principles, such as the law of diminishing returns.

    Demerits of Deductive Method:
    Despite these merits, much criticism has been levelled against this method by the Historical School which flourished in Germany.

    1 .Unrealistic Assumption:

    Every hypothesis is based on a set of assumptions. When a hypothesis is tested, assumptions are indirectly tested by comparing their implications with facts. But when facts refute the theory based on the tested hypothesis, the assumptions are also indirectly refuted. So deduction depends upon the nature of assumptions. If they are unrealistic, in this method, economists use the ceteris paribus assumption. But other things seldom remain the same which tend to refute theories.

    2. Not Universally Applicable:

    Often the conclusions derived from deductive reasoning are not applicable universally because the premises from which they are deduced may not hold good at all time and places. For instance, the classicists assumed in their reasoning that particular conditions prevailing in England of their times were valid universally. This supposition was wrong. Prof. Lerner, therefore, points out that the deductive method is simply “armchair analysis” which cannot be regarded as universal.

    3. Incorrect Verification:

    The verification of theories, generalisations or laws in economics is based on observation. And right observation depends upon data which must be correct and adequate. If a hypothesis is deduced from wrong or inadequate data, the theory will not correspond with facts and will be refuted. For instance, the generalisations of the classicists were based on inadequate data and their theories were refuted. As pointed out by ircholson, “the great danger of the deductive method lies in the natural aversion to the labour of verification.”

    4. Abstract Method:

    The deductive method is highly abstract and requires great skill in drawing inferences for various premises. Due to the complexity of certain economic problems, it becomes difficult to apply this method even at the hands of an expert researcher. More so, when he uses mathematics or econometrics

    5. Static Method:

    This method of analysis is based on the assumption that economic conditions remain constant. But economic conditions are continuously changing. Thus this is a static method which fails to make correct analysis.

    6. Intellectually:

    The chief defect of the deductive method “lies in the fact that those who follow this method may be absorbed in the framing of intellectual toys and the real world may be forgotten in the intellectual gymnastics and mathematical treatment.”

    The Inductive Method:
    Induction “is the process of reasoning from a part to the whole, from particulars to generals or from the individual to the universal.” Bacon described it as “an ascending process” in which facts are collected, arranged and then general conclusions are drawn.

    The inductive method was employed in economics by the German Historical School which sought to develop economics wholly from historical research. The historical or inductive method expects the economist to be primarily an economic historian who should first collect material, draw gereralisations, and verify the conclusions by applying them to subsequent events. For this, it uses statistical methods. The Engel’s Law of Family Expenditure and the Malthusian Theory of Population have been derived from inductive reasoning.
    The inductive method involves the following steps:

    1. The Problem:

    In order to arrive at a generalisation concerning an economic phenomenon, the problem should be properly selected and clearly stated.

    2. Data:

    The second step is the collection, enumeration, classification and analysis of data by using appropriate statistical techniques.

    3. Observation:
    Data are used to make observation about particular facts concerning the problem.

    4. Generalisation:

    On the basis of observation, generalisation is logically derived which establishes a general truth from particular facts.

    Thus induction is the process in which we arrive at a generalisation on the basis of particular observed facts.

    The best example of inductive reasoning in economics is the formulation of the generalisation of diminishing returns. When a Scottish farmer found that in the cultivation of his field an increase in the amount of labour and capital spent on it was bringing in less than proportionate returns year after year, an economist observed such instances in the case of a number of other farms, and then he arrived at the generalisation that is known as the Law of Diminishing Returns.

    Merits of Inductive Method:
    The chief merits of this method are as follows:
    (1) Realistic:

    The inductive method is realistic because it is based on facts and explains them as they actually are. It is concrete and synthetic because it deals with the subject as a whole and does not divide it into component parts artificially

    (2) Future Enquiries:

    Induction helps in future enquiries. By discovering and providing general principles, induction helps future investigations. Once a generalisation is established, it becomes the starting point of future enquiries.

    (3) Statistical Method:

    The inductive method makes use of the statistical method. This has made significant improvements in the application of induction for analysing economic problems of wide range. In particular, the collection of data by governmental and private agencies or macro variables, like national income, general prices, consumption, saving, total employment, etc., has increased the value of this method and helped governments to formulate economic policies pertaining to the removal of poverty, inequalities, underdevelopment, etc.

    (4) Dynamic:

    The inductive method is dynamic. In this, changing economic phenomena can be analysed on the basis of experiences, conclusions can be drawn, and appropriate remedial measures can be taken. Thus, induction suggests new problems to pure theory for their solution from time to time.

    (5) Histrico-Relative:

    A generalisation drawn under the inductive method is often histrico-relative in economics. Since it is drawn from a particular historical situation, it cannot be applied to all situations unless they are exactly similar. For instance, India and America differ in their factor endowments. Therefore, it would be wrong to apply the industrial policy which was followed in America in the late nineteenth century to present day India. Thus, the inductive method has the merit of applying generalisations only to related situations or phenomena.

    Demerits of Inductive Method:
    However, the inductive method is not without its weaknesses which are discussed below.

    (1) Misenterpretation of Data:

    Induction relies on statistical numbers for analysis that “can be misused and misinterpreted when the assumptions which are required for their use

    (2) Uncertain Conclusions:

    Boulding points out that “statistical information can only give us propositions whose truth is more or less probable it can never give us certainty.”

    (3) Lacks Concreteness:

    Definitions, sources and methods used in statistical analysis differ from investigator to investigator even for the same problem, as for instance in the case of national income accounts. Thus, statistical techniques lack concreteness.

    (4) Costly Method:

    The inductive method is not only time-consuming but also costly. It involves detailed and painstaking processes of collection, classification, analyses and interpretation of data on the part of trained and expert investigators and analysts

    (5) Difficult to Prove Hypothesis:

    Again the use of statistics in induction cannot prove a hypothesis. It can only show that the hypothesis is not inconsistent with the known facts. In reality, collection of data is not illuminating unless it is related to a hypothesis.

    (6) Controlled Experimentation not Possible in Economics:

    Besides the statistical method, the other method used in induction is of controlled experimentation. This method is extremely useful in natural and physical sciences which deal with matter. But unlike the natural sciences, there is little scope for experimentation in economics because economics deals with human behaviour which differs from person to person and from place to place.

    Further, economic phenomena are very complex as they relate to man who does not act rationally. Some of his actions are also bound by the legal and social institutions of the society in which he lives. Thus, the scope for controlled experiments in inductive economics is very little. As pointed Out by Friendman, “The absence of controlled experiments in economics renders the weeding out of unsuccessful hypo-these slow and difficult.”

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  417. Avatar Agbaraonye Nkeakam tammy says:
    4 years ago

    The basic methods of analysis used my are divided into two.They include;. Deductive method and Inductive method. 1: DEDUCTIVE METHOD; This method is also known as ANALYTICAL ABSTRACT method.This method starts with undisputed fundamental facts and after adding some assumptions it builds up into a theory.
    A Deductive method consists of three stages.they include; Observation, Deductive reasoning,Instance testing by means of further observation. 2: INDUCTIVE METHOD; In this method, Economists proceed from a practical angle to problems of science to reduce the gulf between theory and induction is done by two forms; Experimentation and Statistical form.Facts are collected first,arranged and conclusions are drawn.Then,these general conclusions are further verified with reference to actual facts.
    In general, inductive method helps in verifying the conclusions of the Deductive methods.Therefore,the two methods, Deductive and inductive are not COMPETITIVE but COMPLEMENTARY in nature.

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  418. Avatar ONAH JOHN OKECHUKWU : Reg No: 2019/ 247168 says:
    4 years ago

    Basically, there are two basic methods of economic analysis used by economists to measure the level of progress in economic activities. These methods include the Deductive and Inductive methods respectively.

    1. Deductive method: The deductive method is also called abstract, analytical and a prioritized method and represents an abstract approach to the derivation of economic generalizations and theories.
    The principal steps in the process of deriving economic generalizations through deductive steps are:
    a. Perception of the problem: In any scientific enquiry, the analyst or theorist must have a clear idea of the problem to be enquired into. He must know the significant variables regarding whose behavior and interrelationship he wants to derive generalizations.
    b. Definition of technical terms and making of assumptions: The next step in the process of deriving economic generalizations is to define precisely and unambiguously the various technical terms to be used in the analysis well as to state clearly the assumptions he wants to derive generalizations.
    c. Deducing hypotheses through logical deduction: This is also another step in deriving generalizations through deductive logic is deducing hypotheses from the assumptions or premises taken.
    d. Testing or verification of hypotheses: Hypotheses obtained above have to be verified before they are established as generalizations or principles of economics. For the verification of hypotheses, economists cannot make controlled experiments, because they have to discover uniformities in behavior patterns of man.

    2. Inductive method: The inductive method which is also called empirical method derives economic generalizations on the basis of experience and observations. In this method, detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalizations which followed from the observations collected. It is worth mentioning that the number of observations has to be large if it can yield a valid economic generalization. One should not generalize on the basis of a very few observations.

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  419. Avatar Ugwuanyi Ogechi Esther says:
    4 years ago

    There are two basic types of economic analysis namely:
    1. Deductive economic analysis.
    2. Inductive economic analysis.
    Under the deductive economic analysis, we have series of steps in the analysis of an economic. They are:
    a. Problem perception: Here, the economic analyst first of all detect the problem he is about to analyse.
    b. Technical test: This involves the testing of the already detected problems and sorting out steps or methods of solving it.
    c. Postulates: These comprises of assumptions made in the course of the analysis as to create a remedy or solution to the problem at hand and it ought to be realistic analysis.
    d. Hypothesis testing: Comprises of the already tested assumptions which have be confirmed correct after series of tests.

    On the other hand, the inductive economic analysis involves the use of econometric packages like data(could be primary or secondary) for running the regression analysis.

    In summary, two methods of the analysis of the same purpose but varies in their methods of application which are the step by step procedures and that of the econometric packages respectively.

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  420. Avatar NANGIBO MATILDA TONYE says:
    4 years ago

    Reg. No. 20683691GF
    Public administration and LG
    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Deductive And Inductive Methods

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

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  421. Avatar Ezeh Collins.c says:
    4 years ago

    1);Formulation of the problem: In any scientific study, the analyst must have a clear idea of the nature of the problem to be investigated (or enquired into). It is absolutely essential for the analyst or theorist to acquire knowledge of the relevant variables — variables about whose behaviour and interrelationship he wants to make generalisations. The perception of the problem is in most cases a complex exercise.

    2);Definition of Terms and Formulation of Assumptions:
    Since every subject has its own language, it is necessary to define certain technical terms associated with the analysis as the second step. It is also necessary to make assumptions. The assumptions maybe of different types, viz., technological, relating to the state of technology and factor endowments, or behavioural, relating to the actions of economic agents like consumers, factor owners, and producers.
    3):Formation of Hypothesis:
    The third step in making generalisations through process of logical deduction is to form a hypothesis on the basis of the assumptions made. A hypothesis is a provisional statement the truth of which is not known to us. A hypothesis just describes the relationship among factors affecting a particular phenomenon.
    4);Hypothesis Testing:
    The final step involved in the deductive method is hypothesis testing. Hypothesis testing refers to the development and use of statistical criteria to aid decision making about the validity of a hypothesis in uncertain conditions. In any decision about the validity of a hypothesis there is always a chance of making a correct choice and a risk of making a wrong choice.

    Hypothesis testing is concerned with evaluating these chances and suggesting criteria that minimise the likelihood of making wrong decisions. Therefore, hypotheses deduced through a process of logical reasoning have to be verified. Otherwise, it is not possible to establish them as generalisations or principles of economic science.

    NB:Two major problems crop up as a result of uncontrolled experiments.
    Firstly, they have to make more and more observations to verify the hypothesis or derive the generalisations. Moreover, it becomes absolutely essential to interpret the facts carefully so as to be able to discern the significant relationship among the relevant economic variables.

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  422. Avatar Ifeanyi Daniel Chinonso says:
    4 years ago

    There are basically two method of economic analysis. These are the Deductive and Inductive anlysis. The deductive analysis of economics simply deals with the thereotical and generalisational aspect of economics which invovles studying the relationships with variables and backing those generalisations with proofs. The deductive analysis broadly includes the perception of economic issues,defining precisely technical steps to counter them,making assumption or postulates, deducing hypothesis and the judging those hypothesis. While inductive aspect of analysis involves the initiation of econometric packages like E-views and SNATA.

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  423. Avatar EMAGUN VICTOR says:
    4 years ago

    Reg no: 21493370JF
    matric no:2020/243177

    The basic method of analysis used my economics are:
    1.Deductive method
    2.Inductive method
    Deductive method
    This can also be called abstract and analysis method that represents an abstract approach to the derivation of economic theories.
    in deductive method of economic analysis we proceed from general to the particular.a complete form of deductive method consist of three stages they are;

    Observation
    Deductive reasoning
    Instance and testing using further observations.

    Advantages of deductive method of economic analysis.

    These are the merits of deductive method.

    1.Deductive method obviates the necessity of experimentation.economics being a social science experimentation may not be available as in the case of physics or chemistry.so, the next best alternative to boulding this method of deductive reasoning is the method of intellectual experiment.

    2.Deductive method is exceedingly simple.for example,the law that the utility derived by an individual from a commodity goes on diminishing with every successive addition is a self-evident truth from which we may draw many logical conclusions,larger the stock of money,the lower shall be the utility of money ;rich persons have the lesser marginal utility if money than the poor people so taxes should not be levied on a proportional basis.

    Disadvantage of deductive method of economic analysis.

    The disadvantage of deductive method of economic analysis includes the following;

    1Deductive generalization started on wrong premises that will be dangerous when suck generalization claim universal validity.thrn such faulty generalization are made use of in framing government government policies,the results would be nothing but disastrous.

    2.Deductive method is based mainly on assumption which are perfectly valid. If assumption are wrong, general generalization will be imperfect and invalid.

    .Inductive Method Of Economic Analysis
    Inductive method which is also called empirical method derives economic generalization on the basic of experience and observations.in this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at a certain generalization which follow from the observation collected.

    Advantages Of Inductive Method Of Economics Analysis

    The following are the merits of inductive method

    1.It helps to verify conclusion on deductive method.

    2.It is realistic i.e it describes things the way they are .

    Disadvantages Of Inductive Method Of Economics Analysis

    Thses are The Disadvantages Of Inductive Economic Analysis;

    1.Retriving of information in the inductive process is highly complex and complicated job warranting extraordinary understanding to alienate economic from non economic factors.

    2.When the investigators lack a balanced judgement there is the risk of drawing hurried conclusion based on inadequate and irrelevant data .

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  424. Avatar Agboja Ogechi Stephenie, 2019/244739 says:
    4 years ago

    Deduction & Induction
    In logic, we often refer to the two broad methods of reasoning as the deductive and inductive approaches.

    Deductive reasoning works from the more general to the more specific. Sometimes this is informally called a “top-down” approach. We might begin with thinking up a theory about our topic of interest. We then narrow that down into more specific hypotheses that we can test. We narrow down even further when we collect observations to address the hypotheses. This ultimately leads us to be able to test the hypotheses with specific data – a confirmation (or not) of our original theories.
    It makes use of economic packages such as E-views and SNATA

    Inductive reasoning works the other way, moving from specific observations to broader generalizations and theories. Informally, we sometimes call this a “bottom up” approach (please note that it’s “bottom up” and not “bottoms up” which is the kind of thing the bartender says to customers when he’s trying to close for the night!). In inductive reasoning, we begin with specific observations and measures, begin to detect patterns and regularities, formulate some tentative hypotheses that we can explore, and finally end up developing some general conclusions or theories.

    These two methods of reasoning have a very different “feel” to them when you’re conducting research. Inductive reasoning, by its very nature, is more open-ended and exploratory, especially at the beginning. Deductive reasoning is more narrow in nature and is concerned with testing or confirming hypotheses. Even though a particular study may look like it’s purely deductive (e.g., an experiment designed to test the hypothesized effects of some treatment on some outcome), most social research involves both inductive and deductive reasoning processes at some time in the project. In fact, it doesn’t take a rocket scientist to see that we could assemble the two graphs above into a single circular one that continually cycles from theories down to observations and back up again to theories. Even in the most constrained experiment, the researchers may observe patterns in the data that lead them to develop new theories.

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  425. Avatar Agboja Ogechi Stephenie, 2019/244739 says:
    4 years ago

    Deduction & Induction
    In logic, we often refer to the two broad methods of reasoning as the deductive and inductive approaches.

    Deductive reasoning works from the more general to the more specific. Sometimes this is informally called a “top-down” approach. We might begin with thinking up a theory about our topic of interest. We then narrow that down into more specific hypotheses that we can test. We narrow down even further when we collect observations to address the hypotheses. This ultimately leads us to be able to test the hypotheses with specific data – a confirmation (or not) of our original theories.

    Inductive reasoning works the other way, moving from specific observations to broader generalizations and theories. Informally, we sometimes call this a “bottom up” approach (please note that it’s “bottom up” and not “bottoms up” which is the kind of thing the bartender says to customers when he’s trying to close for the night!). In inductive reasoning, we begin with specific observations and measures, begin to detect patterns and regularities, formulate some tentative hypotheses that we can explore, and finally end up developing some general conclusions or theories.

    These two methods of reasoning have a very different “feel” to them when you’re conducting research. Inductive reasoning, by its very nature, is more open-ended and exploratory, especially at the beginning. Deductive reasoning is more narrow in nature and is concerned with testing or confirming hypotheses. Even though a particular study may look like it’s purely deductive (e.g., an experiment designed to test the hypothesized effects of some treatment on some outcome), most social research involves both inductive and deductive reasoning processes at some time in the project. In fact, it doesn’t take a rocket scientist to see that we could assemble the two graphs above into a single circular one that continually cycles from theories down to observations and back up again to theories. Even in the most constrained experiment, the researchers may observe patterns in the data that lead them to develop new theories.

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  426. Avatar Obi Amarachi celestina says:
    4 years ago

    Name : OBI AMARACHI CELESTINA
    Reg No: 20855804BA
    Dept: public administration and local government
    Matric No: 2020/243303
    Email: amaratina20@gmail.com

    They are two methods of analysis used by economist ; inductive method and deductive method.
    1 Inductive method: The inductive method which is also called empirical method drives economic generalizations on the basis of experienment and observation. Therefore inductive method or reasoning is a type of method or reasoning that involves drawing a general conclusion from a set of observations.
    In this method detailed data are collected with regards to a certain economic phenomenon and efforts is made to arrive at certain generalizations which follows from the observations collected.

    There are three ways which can be used for driving economic principles and theories
    1 Experiementation
    2Observations
    3 statistical or econometric method

    They are various steps in inductive method
    1 the first step is to identify the problems
    2 the second step is to identify technical and variables related to the problem
    3 The third step which is very important in the inductive method is the collection of data about the variables related to the problems and doing some preliminary thinking about the possible functional relationship between the relevant variables
    4 Another important step is the constructions of economic theories: this the processing of data collected and finding out what relations between the variables actually hold good.

    2 Deductive method: In deductive method of economic Analysis, we proceed from general to the particular. This is also known as an hypothetical method for some of the assumptioms may not correspond to actual facts, but very dear actual facts which may be used as premise for starting, reasoning and drawing conclusions.
    The Deductive method drives new conclusions from fundamental assumptions or from the truth established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true to the analysis of facts.

    They are steps of driving economic generalizations through deductive logic are
    1 perception of the problem to be enquird into: the analyst must have clear odeal of the problem to be enquird into, inorder not to make some mistakes.
    2 Definition of technical terms and making of assumptions.
    3 Deducing hypothetical, that is driving conclusions from the premises through the process of logical reasoning
    4 Testing of hypothesis deduced.

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  427. Avatar Nwankwo Christian Chukwuemeka, 2019/241190 says:
    4 years ago

    There are two methods of analysis used by economist,they are;
    1) Inductive method
    2) Deductive method
    Firstly, that of inductive reasoning aims at developing a theory while deductive reasoning aims at testing an existing theory.

    Inductive reasoning moves from specific observations to broad generalizations, and deductive reasoning the other way around.

    Both approaches are used in various types of research, and it’s not uncommon to combine them in one large study.

    Inductive research approach
    When there is little to no existing literature on a topic, it is common to perform inductive research because there is no theory to test. The inductive approach consists of three stages:

    Observation
    A low-cost airline flight is delayed
    Dogs A and B have fleas
    Elephants depend on water to exist
    Observe a pattern
    Another 20 flights from low-cost airlines are delayed
    All observed dogs have fleas
    All observed animals depend on water to exist
    Develop a theory
    Low cost airlines always have delays
    All dogs have fleas
    All biological life depends on water to exist
    Limitations of an inductive approach
    A conclusion drawn on the basis of an inductive method can never be proven, but it can be invalidated.

    Example
    You observe 1000 flights from low-cost airlines. All of them experience a delay, which is in line with your theory. However, you can never prove that flight 1001 will also be delayed. Still, the larger your dataset, the more reliable the conclusion.

    Deductive research approach
    When conducting deductive research, you always start with a theory (the result of inductive research). Reasoning deductively means testing these theories. If there is no theory yet, you cannot conduct deductive research.

    The deductive research approach consists of four stages:

    Start with an existing theory
    Low cost airlines always have delays
    All dogs have fleas
    All biological life depends on water to exist
    Formulate a hypothesis based on existing theory
    If passengers fly with a low cost airline, then they will always experience delays
    All pet dogs in my apartment building have fleas
    All land mammals depend on water to exist
    Collect data to test the hypothesis
    Collect flight data of low-cost airlines
    Test all dogs in the building for fleas
    Study all land mammal species to see if they depend on water
    Analyse the results: does the data reject or support the hypothesis?
    5 out of 100 flights of low-cost airlines are not delayed = reject hypothesis
    10 out of 20 dogs didn’t have fleas = reject hypothesis
    All land mammal species depend on water = support hypothesis
    Limitations of a deductive approach
    The conclusions of deductive reasoning can only be true if all the premises set in the inductive study are true and the terms are clear.

    Example

    All dogs have fleas (premise)
    Benno is a dog (premise)
    Benno has fleas (conclusion)
    Based on the premises we have, the conclusion must be true. However, if the first premise turns out to be false, the conclusion that Benno has fleas cannot be relied upon.

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  428. Avatar Nwizugbe Vitalis Toochukwu says:
    4 years ago

    Name: Nwizugbe Vitalis.T
    Reg. No: 20157599HA
    Email: nwizugbevitalis@gmail.com
    Department: Business Education

    What are the basic methods analysis used by the Economists?
    -Deductive Method
    -Inductive method
    Briefly and convincingly discuss each of them
    DEDUCTIVE METHOD
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.

    INDUCTIVE METHOD
    This type of reasoning flow from facts to theory. First, we collect information and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods observation, experiments, and statistical methods. The stages in this method are:
    – observation
    – Formulation of a hypothesis
    – Generalizing principles
    – Verifying against actual facts.

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  429. Avatar Okoye Nmesomachukwu Blessing says:
    4 years ago

    1. The two basic methods of analysis are Deductive and Inductive methods. On one hand we will be talking on Dedutive method which is also know as analytical, abstract and a prior method, with deductive method it is said to get it defined precisely then identify the problem..on one side generalisations describes the relationship between the variables and are considered to be backed with theorems. One of the principles of deriving a generalizations through deductive logic is defining the technical terms and making it an assumption. Here it explains the terms in which is used technically as in the process done and when coming out we create a close assumption to give it a better state.
    For Inductive method we use what is called Biometric packages or empirical method. In this method detailed data are collected with regard to a certain economic phenomenon. This depends on the principles and theorems brought out which are experimental statistical and observation method.there are various steps gone through in which gives the economist a developing economic. The first is deductive approach which is meant to identify the problem the other is construction of economic theories is the collecting of data together and finding out what relations it holds. In conclusion to the discussion these two methods are said to be reliable and efficient methods to the economist..if the economic hypothesis is not brought down then the Inductive method is no use

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  430. Avatar ONAH CHRISTIAN OBINNA, REG NO:2019/241437 says:
    4 years ago

    What are the basic methods of analysis used by Economists? Briefly and convincingly discuss each of them.
    Answers.
    The basic method of analysis used by economists involves the formulation of law generalization through two method-
    1.Deductive and
    2.Inductive.
    1. Deductive method
    Deductive method is also know also prior reasoning.
    It starts from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    1. Observation of a task/ issue.
    2. Making the hypothesis.
    3. Testing the hypothesis using more observations, etc.
    Advantages of Deductive Method
    1. It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    2. This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.
    2. Indictive method
    Inductive method is a type of reasoning that flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods. Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    1. Observation
    2. Formulation of a hypothesis
    3. Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    1. Since it is based on facts it is more realistic and reliable.
    2. Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Disadvantages of Inductive Method
    1. If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    2. It is a time-consuming process and thus expensive as well.

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  431. Avatar Ogbodo Obinna Amos says:
    4 years ago

    Name: Ogbodo Obinna Amos
    Reg no: 2020/243258
    Department: Public administration and local government
    email: amosobinna24@gmail.com

    The economics methods are:
    a. Inductive method and
    b. Deductive method

    a. Inductive method of economic analysis can been seen as the way premises view and reason thereby showing some evidence which may not be full assured as the finite truth of conculsion.

    b. Deductive method of economic analysis involves the process of reasoning analytical and inferring what must necessary follow from a given set of statement that the present will be like the past and the future will be like the present thought not full assured as change remain constant.

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  432. Avatar Ugwuagbo Mercy chinasa says:
    4 years ago

    Name: ugwuagbo Mercy chinasa
    Reg number: 20687342FA
    Email: chinasaugwuagbo784@gmail.com
    Department: public administration

    The basic methods of analysis used by economists are deductive and I deductive analysis

    Deductive analysis is concerned with developing a proposed explanation made on the basis of limited evidence as a starting point for further investigation (hypothesis) based on existing theory,and then creating and designing a systematic investigation strategy to test the hypothesis,it also means reasoning from particular to the general.
    For example:”All men are mortal , innocent is a man therefore innocent is mortal.For a deductive reasoning to be sound the hypothesis must be correct and true.
    The difference between deductive and indeductive analysis is that deductive analysis points at testing an existing theory.

    Indeductive analysis which is also know as empirical method derives economics generalisation on the basis of experience, experiments and observation.in this process the detailed data are gathered together with regard to a certain economic phenomenon and the effort is made to reach at certain generalisation which follow from the observation gathered.
    Example of indeductive :”the money I pulled from the bag is a penny that is all the coins in the bag are pennies.also indeductive analysis allows it’s conclusion to be false.the difference between indeductive and deductive method is that indeductive points at the direction of developing a theory

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  433. Avatar Ezediokpu Abigail Onyebuchi says:
    4 years ago

    Name:Ezediokpu Abigail Onyebuchi
    reg:2020/243251
    Dept:public Administration
    faculty :social science
    Deductive method:This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific.
    *Inductive method :This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods..

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    • Avatar PULIFE EMMANUEL ONYEKACHI says:
      4 years ago

      NAME: PULIFE EMMANUEL ONYEKACHI
      DEPARMENT : ECONOMICS
      E-mail : pulifeemmanuel 2020@yahoo.com
      Reg no: 20680103FA

      QUESTION 1 : Discuss deductive method

      ANSWER: Deductive reasoning is the process of drawing a conclusion based on premises that are generally assumed to be true. Also called deductive logic” this act uses logical premise to reach a logical conclusion . deductive reasoning is often referred to as top down reasoning.while deductive reasoning is considered to be reliable from testing its importance to recognise it may sometimes lead to false conclusion.
      *METHOD OF DEDUCTIVE
      1.Perception of the problem:in any specific enquiry, the analyst or theorist must have a clear ideal of the problem to be enquired into.
      2.definition of technique terms and making of assumption : these is to define precisely and unambiguously the various technical terms to be used in the analysis as well as to state clearly the assumptions he makes to derive generalisation.
      3.Deducing hypotheses through logical deduction: through logical process hypothesis is deduced from the assumption made.this logical reasoning may be carried out verbally or it may be conducted in symbolic terms using the language of what is known as symbolic logic.
      4. Testing or verification of hypotheses:
      For the verification of hypothesis economist cannot make controlled experiments because they have to discover Uniformities in behaviour pattern of man.so hypotheses obtained above have to be verified before they are establish as generalisation or principle of economics.
      MERIT OF DEDUCTION
      1. Simple
      2.the use of statistical and mathematical information
      3.there being a limited scope of experimentation,
      the method helps in deriving economic theories.
      DEMERIT OF DEDUCTION
      1.Highly abstract
      2.deduction assumped to turn out to be based on half truths or have no relation to reality.
      2.INDUCTIVE METHOD
      It is important to stress that inductive approach does not imply disregarding theories when formulating research questions and objectives. This approach aims to generate meanings from the data set collected in order to identify patterns and relationships to build a theory; however, inductive approach does not prevent the researcher from using existing theory to formulate the research question to be explored.Inductive reasoning is based on learning from experience. Patterns, resemblances and regularities in experience (premises) are observed in order to reach conclusions (or to generate theory).
      METHOD OF INDUCTIVE
      (a) Experimentation,

      (b) observations,

      (c) statistical or econometric method.
      MERIT OF INDUCTION
      1.More realistic
      2. Valuable to government
      3.Dynamic method
      4.More accurate .
      DEMERIT OF INDUCTION
      1.lack concreteness
      2.uncertain conclusion
      3.misinterpretation of data.
      4.costly method.

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  434. Avatar Genesis Ruby Ngozi. Reg no: 20486044BF, Department: Nursing sciences says:
    4 years ago

    Deductive method is the process by which an economist derive conclusion from an already existing theory, it is used to validate an already existing theory. This method is otherwise known as prior, analytical or abstract method. Deductive method involves the following steps;
    *Selecting the problem: This is choosing the problem that is to be analysed
    * Formulating assumption: this is observing and making assumptions on the already identified problem
    *Formulating Hypothesis: This is formed on the basics of the assumption made, these hypothesis are subjected to testing
    *Testing the hypothesis: This is the verify the hypothesis to be sure that the hypothesis agrees with the already existing facts.
    Merits of deductive methods are ; it is real, it is analytical and simple to understand, it is exact
    The demerits are it is difficult to apply even at the hand of an expert, it uses the centeris paribus method, hence not reliable because economic conditions always changes
    INDUCTIVE METHOD : This is the process by which an economist applies logical thinking to collect observation about a problem,derive hypothesis and testing of the hypothesis in order to develop a fact. An inductive method can not be proven but can be invalidated since economic systems are continuously changing. Merits of inductive methods are; they are note reliable to test economic principles, helps in future investigation, while the demerits are; can be faulty if theories are drawn from insufficient data, collection of data is usually difficult, time consuming and expensive.

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  435. Avatar CHUKWU PAUL EBUKA says:
    4 years ago

    Name : CHUKWU PAUL EBUKA
    Matric number :2020243269
    Department: public administration and local government
    Methods of Economics Analysis
    Deductive method :Deductive method has to do with a matter of fact deduction means reasoning or inference from the general to the universal to the individual .the deductive method derives new conculsion from fundamental Assumption or from the Truth Established by other methods.it involves the process of reasoning from certain law or principle which are assumed to be true to the analysis of fact .. deduction involves four steps
    Selecting the problem
    The formulation of assumption on the basis of which the problem is to be explored
    The formulation of hypothesis through the process of logical reasoning where by interference are drawn
    Verifying the hypothesis
    Merit of Deductive Method
    Real : it’s the method of intellectual experiment according to building
    Simple:The deductive method is simple because it’s analytical
    Powerful: it’s a powerful method of analysis of deducing conclusion from certain facts.
    Exact:The uses of the statistics mathematics and Econometrics in deduction brings Exactness and clarity
    Indispensable:The uses of Deductive method is Indispensable in science like Economics where Experimentation is not possible. as pointed out by Gide and Rist
    Universal :the deductive method helps in drawing interference which are universal validity because they are based in general principles,such as the Law of diminishing Returns.
    De merit of Deductive method
    Un Realistic
    Not universal Applicable
    Incorrect verification
    Abstract method
    Static method
    Intellectually

    Inductive method: is the process of reasoning from a part of the whole from particulars to general or from the individual to the universal.
    Method of inductive
    The problem :The problem should be properly selected and clearly stated
    Data : is the collection , Enumeration , classification and analysis of data by using appropriate statistical techniques
    Observation :data used to make observation about particular fact concerning the problem .
    Merit of inductive method
    Realistic :The inductive method is realistic because it’s based on fact and explain them as they actually are
    Dynamic :The inductive method is dynamic.in this changing Economic phenomenon can basis of experience, conclusion can be drawn
    Historic Relative ;A generalization drawn under inductive method is often historic Relative in Economics
    De merit
    Misenterpretation of data
    In certain conclusion
    Lack of concreteness
    Costly method
    Difficult to prove hypothesis

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  436. Avatar ILOH OKWUDIRI GODKNOWS( department: public administration and local government) reg no 2020/243152 says:
    4 years ago

    Methods of Economic Analysis
    Any economic analysis involves the formulation of laws and generalisation through two (2)
    1. Deductive method
    2. Inductive method
    Deductive method
    This is also called “priori, abstract, analytical reasoning or method and represent an abstract approach to the derivation of economics generalisation and theories
    Principle steps in the process of deriving economic generalisation
    a. Perception of problem to be enquired into : in any scientific enquiry, the first step is for the analyst or theorist must have a clear idea of the problem to be enquired into. He/she must know the significant variables regarding whose behavior and inter relationship he/she wants to derive generalisation.
    b. Definition of Technical Terms and Making of Assumptions: the next step in the process of deriving economic generalisation is to define precisely and unambiguously the various Technical term to be used in the analysis as to state clearly the assumptions he/she makes to derive generalisation.
    c. Deducing hypothesis through logical deduction: the next step in deriving generalisation through deductive logic is deducing hypothesis from assumption or premises taken. A hypothesis describes the relationship between factors affecting a phenomenon. Then through logical process hypothesis is deduced from the assumption made. This logical reasoning may be conducted in symbolic terms using the language known as “logic terms”.
    d. Testing or verification of hypothesis: hypothesis obtained above have to be verified before they are established as generalisation or principles. In recent years, a very useful method to test economic hypothesis has been developed . It is called the “Statistical method “or “econometric method”. The method is used to verify and establish the theoritical generalisation
    Merits of the deductive method
    1. The method is simple because it is analytical
    2. It is near to reality i.e less time consuming and also less expensive
    Demerits of the Deductive method
    1. The deductive method is highly abstract I..e it requires a great deal of care to avoid logic or faulty
    2. It is not applicable universally
    Inductive method
    The inductive method which is also called “empirical method” derives economic generalisation on the basis of experience and observation. In this method, detailed data are collected with regard to a certain economic phenomenon and efforts is then made to arrive at certain generalisation which follows from the observation collected
    Steps of inductive method
    a. Observation
    b. Generalisation
    c. Formation of hypothesis
    d. Verification
    Merits of the Induction method
    1. It is based on facts as such method is realistic
    2. In order to test the economic principles, method makes statistical more reliable
    3. Inductive method also helps in the future investigation
    Demerits of the inductive method
    1. If conclusion drawn from insufficient data, the generalisation obtained may be faulty
    2. It is time consuming and expensive

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  437. Avatar Okonkwo Dorcas chinecherem, Reg number 20630427AF , Nursing sciences says:
    4 years ago

    The basic methods of analysis used by economists are – The deductive method and The inductive method
    The deductive method – this method requires the use of logic and reasoning to give an assumption over a collected data to arrive at a conclusion.
    The inductive method – this method requires the use of econometric packages to develop an economic theory or evidence over the collected information or data under observation.

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  438. Avatar Nnamdi ezinne adaobi says:
    4 years ago

    Name: Nnamdi ezinne adaobi
    Jamb reg no:20018702BA
    Email: ezinneadaobi05@outlook.com

    METHODS OF ECONOMIC ANALYSIS

    DEDUCTIVE METHOD:This is also called a priori reasoning.here we start from unchallenged elementary or rudimentary facts and then arrive at conclusion using logical analysis or our own analytical abilities.
    The stages in deductive reasoning:
    *Observation of a task/issue
    *Making the hypothesis
    *Testing the hypothesis using more observation s
    INDUCTIVE METHOD:
    This type of reasoning flows from facts to theory.first we collect information and facts and then move towards providing evidence using economic theory and facts

    Reply
  439. Avatar EZEANYA FRANKLYN CHINEMEREM says:
    4 years ago

    Reg no :2020/243226
    PUB ADMIN
    There are method used by economist to analyze the economy .But the most important of all are two method which is the INDUCTIVE METHOD and DEDUCTIVE METHOD.
    DEDUCTIVE METHOD :This method can also be called abstract ,analytics and priori method .A deductive method involves different step
    1).problem which are been stated and
    2)Information collected and others .
    Unlike the other method which is the inductive method which bases solemnly on statistical data which can be processed through computer. Deductive method requires intelligence in which machines can’t operate on.
    2).INDUCTIVE METHOD : This method is an empirical method which are based on experience and observation .it deals with the statistics data which are been processed in the computer .There are various ways in which inductive method are used which are experimentation ,observation and statistical .

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  440. Avatar Oguledo Jessica Chidera says:
    4 years ago

    BASIC METHOD OF ANALYSIS USED BY ECONOMICS

    Without doubt, to get a clearer picture of the economic climate of the country, we must input either of the basic method of economic analysis. We mustn’t forget that the Paramount importance of imputing such methods focuses simply on providing simple, reliable means of attaining generalization or laws.

    Deductive method is one of these basic methods. In this method, observations are made and tested until a complex and reliable hypothesis is formed. Ideas must be verified in relevance to facts before economic laws are made.

    This method is simple and provides room for reasoning and accurate results but most times, it is based on assumptions and when wrong assumptions are made, generalization or laws can be invalid.

    Another of these methods is the inductive method. This is also known as the empirical method. The space between theory and practicals are bridged in this method. Here, experimentation and statistical method are implemented. When facts are collected, they are arranged in systematic ways so that conclusions can be easily drawn and the major principles are derived from these facts. This method utilizes statistical techniques and hence, it has a major advantage over deductive method. Another advantage it has over deductive method is that, conclusions are drawn from facts which makes it more reliable. Still, it has It’s own disadvantage because it is time consuming and expensive and most times, it can be technical or difficult.

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  441. Avatar Ojo Favour Abiodun says:
    4 years ago

    NAME :OJO FAVOUR ABIODUN
    DEPARTMENT:PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT
    MATRIC NO:2020/243292
    JAMB REG: 21737294IF
    Economists mostly makes use of two major methods of economic analysis namely deductive reasoning/method and inductive reasoning/method.These two methods are basically the same process as they both arrive at certain generalisations.
    (1). THE DEDUCTIVE METHOD/REASONING
    This method is also called abstract and analytical method. In deductive method,we proceed from general to the particular which is also known as hypothetical method.It starts with certain formal data and assumptions then by logical reasoning, we arrive at certain conclusions. This method has complete form consisting of three stages; observation, deductive reasoning and instance and testing by means of further observations. Deductive reasoning gives us hypotheses or generalisations. The hypotheses has to be tested before we can have the economic law. The deductive method is exceedingly simple and it obviates the necessity of experimentation. It also results in accuracy and exactness. However, deduction has some flaws. For instance, if a deduction is based on a wrong assumption, generalisations made from the wrong assumption is imperfect and invalid.
    (2). THE INDUCTIVE METHOD/REASONING: This method is also known as empirical method. In this method, econometric package are used to test our experiment. The numbers of observations has to be large for it to yield a valid economic generalisations in this method meaning one should not generalize on the basis of a very few observation. Induction is done by two forms ; experimentation and statistical form. facts are collected first, arranged and conclusions are drawn then these general conclusions are further verified with reference to actual facts.
    This method is generally associated with statistical form of inductions. Inductive reasoning is helpful in verifying the conclusions of the deductive reasoning and it is highly practical and realistic as it describes things as they are. Also, the economic laws under it are not universal but valid only under certain conditions. However,this method also has some limitations. For instance, when the investigators lack a balanced judgement, there is the risk of drawing hurried conclusions based on inadequate and irrelevant facts and data .
    In conclusion, induction and deduction are both needed for scientific thought just as the right foot and left foot is needed for walking .

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  442. Avatar Nwachukwu Amarachi Immaculate says:
    4 years ago

    Name: Nwachukwu Amarachi Immaculate
    Department: Public Administration and Local Government
    Matric Number: 2020/243291

    There are basically two methods of analysis used by economists. They are:
    1. Deductive method
    2. Inductive method
    The deductive method also known as a priori method represents an abstract approach to the derivation of economic generalisations and theories.
    This method can be derived through the following steps:
    1. Perception of the problem to be enquired into
    2. Defining exactly the technical terms and thereby making appropriate assumptions which is often called postulates.
    3. Deducing hypotheses which means deriving conclusions from premises through a process of logical reasoning.
    4. Testing the hypotheses deduced.

    Inductive method
    The inductive method which is also called empirical method derives economic generalisation on the basis of experience and observations.
    Detailed data are collected in this method with regards to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observation collected.
    Steps in in inductive method
    1. Collection of data about the variables related to the problem and think about the possible functional relationship between the relevant variables.
    2. Processing of the data collected and finding out what relations it had between the variables.
    In conclusion, both methods are needed for the proper economic theories. Non is more appropriate in developing economic theories and principles thefore, they are both complementary rather than competive.

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  443. Avatar Samuel Evelyn chinecherem says:
    4 years ago

    Samuel Evelyn chinecherem
    2020/243266
    Public administration and local government
    1a) Deductive method
    Inductive method
    b)Deductive method; basically deals with the summary from the basic assumptions established by other methods used to experiment.
    *) primarily perceiving the problems that should be inquired into, then finding the technical terms in a lay man’s language which must be realistic to form a valid assumption through logical reasoning. Forming the hypothesis from which conclusions are gotten then tested with the earlier assumptions to either accept or reject the previous conclusions

    Inductive method ; In this method, economists proceed from a practical angle of experience and observations to reduce the gap between theory and practice. Induction is done by two forms, namely . experimentation and statistical form. Facts are gathered first, arranged and conclusions are drawn in order to give valid economic advices

    Reply
  444. Avatar Mbanefo ogochukwu christiana says:
    4 years ago

    Name:
    Mbanefo ogochukwu christiana
    Dep:
    Public administration and local government (PALG)
    Reg.No.
    2020/243213
    Email
    mcgoodness200@gmail.com

    Methods of Economic analysis includes;

    (A) Deductive method; this means reasoning or inference from general to the particular or from the universal to the individual.
    The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods.

    Deductive method involves four steps;
    1.selecting the problem
    2. The formulation of assumptions on the basis of which the problem is to be explored
    3. The formulation of hypothesis through the process of logical reasoning where by inferences are drawn.
    4. Verifying the hypothesis.

    Merits
    I. Real; it is the method of”intellectual experiment”, according to Boiling.
    2. Simple; the deductive method is simple because it is analytical
    3. Powerful; the deductive method of analysis for deducing conclusions from certain fact.
    Demerits
    1.unrealistic assumption; every hypothesis is based on a set of assumptions.
    2. Not universally applicable; often the conclusions derived from deductive reasoning are not applicable universally.
    3. Incorrect verification; the verification of theories, generalizations or laws in Economics is based on observation.

    (B) The inductive method; induction is the process of reasoning from a part to the whole from particulars to generals or from the individual to the universal.

    Inductive methods includes
    1. The problem; inorder to arrive at a generalization concerning an economic phenomenon, the problem should be properly selected and clearly stated
    2. The data; the second step is the collection, enumeration, classification and analysis of data by using appropriate statistical techniques.
    3. Generalization;on the basis of observation, generalization is logically derived which establishes a general truth from particular facts.

    Merits

    1. Realistic; it is realistic because it is based on facts and explains them as they actually are.
    2. Future enquires; induction helps in future enquires.By discovering and providing general principles, induction helps future investigations.once a generalization is established,it becomes the starting point of future enquires.
    3. Statistical method; the inductive methods makes use of the statistical method.this has made significant improvements in the application of individual for analysing Economic problems of wide range.

    Demerits
    The main weakness of this method are under
    1. If conclusions drawn from insufficient data, the generalizations obtained may be faulty
    2. The collection of data itself is not an easy task.the sources and methods employed in the collection of data differ from investigator to investigator.the results therefore,may differ even with the same problem.
    3. The inductive method is time consuming and expensive.

    Reply
  445. Avatar Muokebe chiamaka faith says:
    4 years ago

    NAME : MUOKEBE CHIAMAKA FAITH
    REG NO: 20133856DF
    DEPT: SOCIAL SCIENCE ( EDUCATION AND ECONOMICS)

    Methods of economic Analysis
    Generalizations in economic have been derived in two ways:
    Deductive method
    Inductive method

    DEDUCTIVE METHOD : deductive method is also called abstract, analytical, and a priori method and it represents an abstract approach to derivation of economic generalization and theory.
    THE PRINCIPAL STEPS IN THE PROCESS OF DERIVING ECONOMIC GENERALIZATIONS THROUGH DEDUCTION LOGIC/ METHOD ARE :
    1. Perception of the problem : one must have a clear ldea of the problem to be enquirers into.
    2. Defining precisely the technical terms and making appropriate and basic reality assumption.
    3. Deducing hypotheses : i.e deriving conclusions from the assumption / premises through the process of logical reasoning.
    4. Testing of hypothesis : Hypotheses obtained above have to be verified before they are established as generalization.

    Deduction method is less time consuming and less expensive. It is also extremely useful method of constructing economic theories.

    INDUCTIVE METHOD
    The inductive method is also empirical method derives economic generalization on the basic of experience and observation. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalization which follow from the observation collected.
    Ways which can be used for deriving economic principles and theories using inductive method:
    They are:
    a) Experimentation
    b) Observations,
    c) Statistical or Econometric method.
    THE PRINCIPLE STEPS IN THE PROCESS OF DERIVING ECONOMIC GENERALIZATION THROUGH INDUCTIVE METHOD :
    1. Identify the problem.
    2. Defining technical term and relevant variable.
    3. Data collection and some preliminary thinking
    4. Data processing to find out how they are related.
    5. Develop a theory and refine it through statistical method.
    6. Make prediction and test them.

    However both inductive and deduction method are needed for scientific thought. They cannot function well without each other because empirical studies made through statistical or inductive method without a theorical hypothesis to serve as a guide for the selection of data is quite useless.

    Reply
  446. Avatar Akpachiogu Oscar Chidozie says:
    4 years ago

    Name: Akpachiogu Oscar
    Department: Public Administration
    Reg No: 20163593CF
    Email: officialzeratti1@gmail.com

    METHODS OF ECONOMIC ANALYSIS
    Economic analysis entails the study of study of economic systems. In other words it is the study of the production process of an industry which aims at determining how effectively an economy is operating. The various methods includes:-
    1. INDUCTIVE REASONING:- This type of reasoning goes from facts to theory in the sense that we gather information and facts and then move towards making available the evidence using economic theory and facts.
    The stages in this method includes; Observation, formation of the hypothesis, deciding of the principles and verifying against actual facts.

    Advantages of Inductive reasoning
    • It is real and reliable because it is based on facts.
    • It is more acceptable universally because the process is more scientific and uses statistical methods and experiments.
    • It is dynamic because the economic environment always changes.

    Disadvantages of Inductive reasoning
    • It consumes time and money.
    • The data gathered varies from person to person.

    2. DEDUCTIVE REASONING:- This can be called Priori reasoning. Here, we start from assumptions or facts that are still in its initial and primary stage after which we then arrive at a conclusion using our own analytical abilities.
    The stages in this reasoning are; Observation of a task, formation of an hypothesis and testing the hypothesis using more observations.

    Advantages of Deductive Reasoning
    • It is simple and doesn’t require any complex analysis.
    • It is important for economists because it focuses on economic reasoning.

    Disadvantages of Deductive Reasoning
    • There is risk of wrong process and conclusion if the assumptions are defected or useless.

    Reply
  447. Avatar Eze chinonso lawrencia. 2019/241498 says:
    4 years ago

    DEDUCTIVE METHOD:This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    #Observation of a task/ issue
    #Making the hypothesis
    #Testing the hypothesis using more observations, etc.
    INDUCTIVE METHOD: this type of reasoning flows from facts to theory, this method formulate principle using
    # Observation
    # Formulation of a hypothesis
    # Generalizing principle
    # Verifying against actual facts
    IN SUMMARY
    DEDUCTIVE : information-pattern-tentative hypothesis- theory
    INDUCTIVE : theory- hypothesis-observation- confirmation

    Reply
  448. Avatar ANIH CHIAMAKA ESTHER says:
    4 years ago

    NAME: ANIH CHIAMAKA ESTHER
    DEPT: PALG
    REG NO:20631439HF

    THE OUESTION SAYS: what are the basic method of analysis used by economist? Briefly and convincingly discuss each of them.

    METHODS OF ECONOMICS ANALYSIS
    An economic theory dervies laws and generalization through two methods: (1)Deductive method and (2) inductive method
    (1) Deductive method of economic Analysis: the Deductive method is also named as analytical, abstract or prior method. The Deductive method consist in deriving conclusion from general truths, takes few general principle and applies them draw conclusion. 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.

    STEPS OF DEDUCTIVE METHOD
    (1) PRECEPTION OF THE PROBLEM TO BE INQUIRED INTO: in the process of deriving economics generalizations, the analyst must have a clear and precise idea of the problem to be inquired into.
    (2) DEFINING OF TERMS: the next steps in this direction is to define clearly the technical terms used analysis. Further, assumption made for a theory should also be precise.
    (3) DEDUCING HYPOTHESIS FROM THE ASSUMPTION: the third steps in deriving generalization is deducing hypothesis from the assumption taken.
    (4) TESTING OF HYPOTHESIS: before establishing laws or generalization, hypothesis should be verified through direct observation 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).

    MERITS OF DEDUCTIVE METHOD
    (1) the method is simple because it is analytical.
    (2) this method is near to reality.
    (3) the use of mathematical techniques in deducing theories of economic brings exactness and charity in economic Analysis

    DEMERIT OF DEDUCTIVE METHOD
    (1) the Deductive method is simple and precise only if the underlying assumption are valid.
    (2) the Deductive method is highly abstract. It require, a great deal of care to avoid bad logic or faculty economic reasoning.
    (3) professor learner describes the deductive method as “armchair” analysis. According to him, the premises from which inferences are draw may not hold good at all times.

    (2) INDUCTIVE METHOD OF ECONOMICS ANALYSIS: which is also called empirical method was adopted by the historical school of economist.it involves the process of reasoning from particular facts to general principle. For instance, we observe 200 person 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, which the fifth is a fool from this observation,we can easily draw conclusion that people like to buy from a cheaper shop unless they are guided by patriotism or they are devoid of common Sense.

    STEPS OF INDUCTIVE METHOD
    (1) observation
    (2) formation of hypothesis
    (3) Generalization
    (4) vertification

    MERITS OF INDUCTIVE METHOD
    (1) it is based on facts as such the method is realistic
    (2) in order to test the economic principle, method makes statistical techniques. The inductive method is reliable.
    (3) inductive method also helps in future investigations.
    (4) it is dynamic.

    DEMERIT OF INDUCTIVE METHOD
    (1) it is time consuming and expensive.
    (2) the collection of data itself is not an easy task.
    (3) if conclusion drawn from insufficient data, the generalization obtained may be faculty

    In conclusion, inductive and Deductive method are both needed for scientific thought, as the right and left foot are both needed for walking.

    Reply
  449. Avatar Emmanuel Emeka Umeh says:
    4 years ago

    Reg.no: 2020/243255

    Economics is regarded as a social science because it uses scientific methods to build theories that can help explain the behaviour of individuals, groups and organisations.

    Like any other science, Economics adopts two important methods in its investigations and formulation of laws and principles. The two methods are;
    1. Deductive Methods and
    2. Inductive Methods.

    1. Deductive Methods: In the Deductive method of Economic Analysis we proceed from the general to the particular. This is also known as a hypothetical method for some of the assumptions may not correspond to facts, but very near facts which may be used as the premise for starting, reasoning and drawing conclusions.

    A complete form of the deductive method consists of three stages;
    1. Observation
    2. Deductive reasoning and
    3. Instance and testing using further observations.

    Deductive reasoning provides us with hypotheses or generalizations. If the hypotheses are tested and verified with relevance to facts, we have valid economic laws.

    Advantages of Deductive Method of Economic Analysis

    The deductive method has the following merits:
    1. Deductive method is exceedingly simple. For example, the law that the utility derived by an individual from a commodity goes on diminishing with every successive addition is a self-evident truth from which we may draw many logical conclusions, larger the stock of money, the lower shall be the utility of money; rich persons have the lesser marginal utility of money than the poor people; so taxes should not be levied on a proportional basis. If taxes are levied proportionately, the sacrifice of the poor will be larger than the rich. This is against the Canon of equity, etc. Thus the principle of progressive taxation is derived from the law of diminishing utility through deductive reasoning.

    2.Deductive method obviates the necessity of experimentation. Economics is a social science, experimentation may not be available as in the case of physics or chemistry. So, the next best alternative to experiment is deductive reasoning. According to Boulding this method of deductive reasoning is the method of intellectual experiment.

    Disadvantages of Deductive Method of Economic Analysis

    1. Deduction is based mainly on perfectly valid assumptions. If assumptions are wrong, generalizations made based on wrong assumptions will be imperfect and invalid. All economic laws are based on too many assumptions where there is more scope for committing errors through wrong hypotheses.

    2. Deductive generalizations started on the wrong premises will be dangerous when sucgeneralizationson claim universal validity. Then such faulty generalizations are made use of in framing government policies, the results would be nothing but disastrous.

    Inductive Method of Economic Analysis

    In this method, economists proceed from a practical angle to problems of science to reduce the gulf between theory and practice. Induction is done in two forms, viz. experimentation and statistical form. Facts are collected first, arranged and conclusions are drawn. Then these general conclusions are further verified concerning facts.
    The inductive method is generally associated with the statistical form of inductions. The statistical approach has a larger field in economic investigations than the method of experimentation. 

    Advantages of Inductive Method of Economic Analysis

    The inductive method has the following merits:
    1. It is highly practical to add realism as it describes things as they are.
    2. It helps verify the conclusions of the deductive method.

    Disadvantages of Inductive Method of Economic Analysis

    The inductive method has the following limitations:
    1. When the investigators lack a balanced judgement there is the risk of drawing hurried conclusions based on inadequate and irrelevant facts and data.
    2. Collection of facts in the inductive process is a highly complex and complicated job warranting extraordinary understanding to alienate economic from non-economic factors.

    Reply
  450. Avatar Ugochukwu chioma precious says:
    4 years ago

    Name: ugochukwu chioma precious.
    Reg no:20656184EA.
    In economics there are two methods of economics analysis which are:
    1) Deductive method.
    2) Inductive method.
    Deductive method is also called abstract, analytical and a prior method and represents an abstract approach to the derivation of economic generalisation and theories.
    The principal steps in the process of deriving economics generalisation through deductive logic are:
    A) Perception of the problem to be required into.
    B) Defining precisely the technical terms and making appropriate assumption, often called postulates or premises.
    C) Deducing hypotheses, that I deriving conclusion from the premises through the process of logical reasoning.
    D) Testing of hypothesis deducted.
    A)in any scientific enquiry, the analyst or theorist must have a clear idea of the problem to be enquired into.
    B) Definition of technical terms and making of assumption:As above mentioned, assumption Maybe behavioral pertaining to the behaviour of the economics variables or they may be technological relating to the state of technology and the factors endowment.
    C) Deducing hypotheses through logical deduction:
    The next step in deriving generalisation through deductive logic in Deducing hypotheses from the assumption or premises taken.
    D) Testing or verification of hypotheses:
    Hypotheses obtained above have to be verified before they are established as generalisation or principles of economics.
    (2) INDUCTIVE METHOD; The inductive method which is also called empirical method derives economic generalisation on the basis of experience and observation.

    Reply
  451. Avatar OKORE SAMUEL CHIDIEBERE says:
    4 years ago

    NAME: OKORE SAMUEL CHIDIEBERE
    DEPT :PUBLIC ADMINISTRATION & LOCAL GOVERNMENT.
    REG:20032821JF

    METHODS OF ANALYSIS USED BY ECONOMISTS;
    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.

    DEDUCTIVE METHOD:
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis

    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    ADVANTAGES OF DEDUCTIVE METHOD
    1. It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    2. This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    DISADVANTAGES OF DEDUCTIVE METHOD
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    INDUCTIVE METHOD
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    ___Observation
    ___Formulation of a hypothesis
    ___Generalizing principles
    ___Verifying against actual facts.

    ADVANTAGES OF INDUCTIVE METHOD
    ___Since it is based on facts it is more realistic and reliable.
    ___Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    ___Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    DISADVANTAGE OF f INDUCTIVE METHOD
    ___If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    ___It is a time-consuming process and thus expensive as well.
    ___The collection of all the data is not an easy job and varies from person to person. As to how they collect data.NAME: VICTOR OBINNA UZOAGBADO
    DEPT :PUBLIC ADMINISTRATION & LOCAL GOVERNMENT.
    REG:22050803EA

    METHODS OF ANALYSIS USED BY ECONOMISTS;
    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.

    DEDUCTIVE METHOD:
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    °Observation of a task/ issue
    °Making the hypothesis
    °Testing the hypothesis using more observations, etc.
    °This reasoning gives us a hypothesis

    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    ADVANTAGES OF DEDUCTIVE METHOD
    1. It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    2. This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    DISADVANTAGES OF DEDUCTIVE METHOD
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    INDUCTIVE METHOD
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    ___Observation
    ___Formulation of a hypothesis
    ___Generalizing principles
    ___Verifying against actual facts.

    ADVANTAGES OF INDUCTIVE METHOD
    ___Since it is based on facts it is more realistic and reliable.
    ___Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    ___Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    DISADVANTAGE OF f INDUCTIVE METHOD
    ___If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    ___It is a time-consuming process and thus expensive as well.
    ___The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  452. Avatar Nwankwo Emmanuel oluebube. 2020/243233 . Public administration and local government says:
    4 years ago

    There are two basic methods used by economists. Which are-:-
    1)Deductive method – The Deductive method also called abstract, analytical and a priori method represents an abstract approach towards the derivation of economic generalizations and theories
    THERE ARE PRINCIPAL STEPS IN THE PROCESS OF DERIVING ECONOMIC GENERALIZATIONS THROUGH DEDUCTIVE METHOD. WHICH ARE:-
    A) Perception of the problem to be enquired into.
    B)Defining precisely the technical terms and making appropriate assumptions.
    C) Deducing hypothesis, that is, deriving conclusions from the premises through the process of logical reasoning.
    D) Testing of hypothesis deduced.

    2) Inductive method-: The inductive method which is also called empirical method derives economic generalizations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalizations which follows from the observations collected.
    But it is better to note that the number of observations has to be large if it can yield a valid economic generalization. One should not generalize on the basis of a very few observations.

    Reply
  453. Avatar Nweze Celine Ogochukwu says:
    4 years ago

    The two methods of economic analysis are.

    (1). DEDUCTIVE METHOD – This means reasoning from general to particular or from the universal to the individuals. This derives new conclusions from truth established by other methods. It involves the process of reasoning from certain laws or principles which are assumed to be true to the analysis of fact.

    DEDUCTION GOES WITH FOUR STEPS BELOW.

    (A). Perceiving the problem – The problem that the researcher selects for enquiry must be stated clearly eg, problem of unemployment, inflation etc.
    (B). Refine it precisely in technical terms – To be fruitful for enquiry, the assumption must be general and more than one set of assumption must be made
    (C). Making of hypothesis/basic assumptions that is verifiable – The next step is to formulate a hypothesis based on logical reasoning after which conclusions are drawn from the prepositions.
    (D). You test the hypothesis – The final step is testing the hypothesis. The economist now use statistical and econometric methods. Testing is used to conform weather the hypothesis is in agreement with fact. Whether a hypothesis is true or not is verified by observation and experiment

    (2) . THE INDUCTION PROCESS – This is the process of thinking or reasoning from a part to the whole from particulars to generals to generals. The historical or inductive methods expects the economist to be a historian economically who would be able to collect material, draw generalisations and verify the conclusions by apply them to subsequent events. In inductive method, econometric package is used in running experiment eg, views, STATA.

    Steps in inductive method.

    (A). The problem – Here the problem should be properly studied and clearly stated.

    (B). Data – This is collection, classifications etc, by using appropriate statistical techniques.

    (C). Generalisation – The best example of inductive reasoning in economics is the formulation of generalisation of diminishing returns.

    Reply
    • Avatar Nweze Celine Ogochukwu says:
      4 years ago

      Reg. Number – 2020/243205.
      Department – public administration and local government.

      Reply
  454. Avatar Ndukwe chinaecherem chidinma says:
    4 years ago

    Name: Ndukwe chinaecherem chidinma
    Department: Public administration and local government.
    Reg. No: 21438332HA
    METHOD OF ECONOMICS ANALYSIS.
    There are two types of method of economics analysis; 1. Deductive method
    2. Inductive method

    Deductive method is also known as abstract, analytical and a prior method and represent an abstract approach to the derivation of economic generalization and theories.
    Perception of the problem- In the scientific method they will understand the problem at first before analysing the way to solve the problem.
    Defining precisely the technical terms and making appropriate assumption often called postulates or premises- This step is the process of deriving economics generalization is to define precisely the various technical terms to be used in the analysis as well as to state clearly the assumption he makes to derive generalizations.
    The assumption may be behavioural pertaining to the behaviour of the economic variable or they maybe technological relating to the state of technology and the factor endowments. The actual economics world is quite complex and full of details in which numerous factors play a part and act and interact on each other.
    Deducing hypothese, that’s, deriving conclusion from the serves through the process of logical reasoning and – Hypothese describes relationship between factors affecting a phenomenon it established the causes and affect relationship between the variable having a bearing on the phenomenon.
    Testing or verification of hypotheses- For the verification of hypotheses, economist cannot make controlled experiments, because they have to discover uniformities in behaviour patterns of man. It may, however, be pointed out that in spite to the complexities and difficulties involved in verifying economics hypothese through successful analysis and proper interpretation of uncontrollable experiences and observations, several useful and significant generalizations have been established in economics.
    Inductive method: it also called empirical method derives economic generalization on the basis of experience and observations. In this method detailed data are collected with regard to a certain economics phenomenon and effort is then made to arrive at certain generalization which follow from the observations collected.
    There are three ways which can be used for deriving economics principle and theories:1. Experimentation
    2. Observations
    3. Statistical or econometric method.

    Reply
  455. Avatar Mbonu Chinazo Kosisochukwu says:
    4 years ago

    Name: Mbonu Chinazo Kosisochukwu
    Department: Economics
    Matric No.: 2020/242597
    Reg No.: 20116052EA
    Email address: chinazokosi03@gmail.com

    METHODS OF ECONOMIC ANALYSIS
    1. INDUCTIVE METHOD
    Also known as the empirical theory. This involves the collection of facts, drawing conclusions from them and testing the conclusions by other facts. It aims at developing a theory. It is more realistic, less time consuming and less expensive. This method undergoes four steps, which are:
    *Observation.
    *Formulation of Hypothesis.
    *Generalisation.
    *Verification.

    2. DEDUCTIVE METHOD
    Also known as the priori reasoning. This refers to the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of the fact; that is, deriving conclusions from general truths and applying them to draw conclusions. This method aims at testing an existing theory. It is near reality but less time consuming and less expensive. The steps involved are:
    *Perception of the problem.
    *Definition of terms.
    *Deducing hypothesis from assumptions.
    *Testing of hypothesis.

    Reply
  456. Avatar Eze Blessing Ogochukwu 2019/242726 says:
    4 years ago

    BASIC METHODS OF ANALYSIS USED BY ECONOMIST ARE:
    Deductive method and Inductive method
    EXPLANATIONS
    Deductive method are also called analytical, abstract or prior method. This methods involves reasoning from a few fundamental propositions,the truth of which is assumed.
    Inductive method involves collection of facts, drawing conclusions from them and testing the conclusions by other facts.

    Reply
  457. Avatar ABBA KINGSLEY, 2019/250067 says:
    4 years ago

    There are two method of analysis used by economist in theoretical economics. They are the deductive and inductive methods.

    Below are the discussion tips below.

    The Deductive Method:
    Deduction Means reasoning or inference from the general to the particular or from the universal to the individual. The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of facts.

    Then inferences are drawn which are verified against observed facts. Bacon described deduction as a “descending process” in which we proceed from a general principle to its consequences. Mill characterised it as a priori method, while others called it abstract and analytical.

    Deduction involves four steps: (1) Selecting the problem. (2) The formulation of assumptions on the basis of which the problem is to be explored. (3) The formulation of hypothesis through the process of logical reasoning whereby inferences are drawn. (4) Verifying the hypothesis. These steps are discussed as under.

    EXPLANATION:

    (1) Selecting the problem:

    The problem which an investigator selects for enquiry must be stated clearly. It may be very wide like poverty, unemployment, inflation, etc. or narrow relating to an industry. The narrower the problem the better it would be to conduct the enquiry.

    (2) Formulating Assumptions:

    The next step in deduction is the framing of assumptions which are the basis of hypothesis. To be fruitful for enquiry, the assumption must be general. In any economic enquiry, more than one set of assumptions should be made in terms of which a hypothesis may be formulated.

    (3) Formulating Hypothesis:

    The next step is to formulate a hypothesis on the basis of logical reasoning whereby conclusions are drawn from the propositions. This is done in two ways: First, through logical deduction. If and because relationships (p) and (q) all exist, then this necessarily implies that relationship (r) exists as well. Mathematics is mostly used in these methods of logical deduction.

    (4) Testing and Verifying the Hypothesis:

    The final step in the deductive method is to test and verify the hypothesis. For this purpose, economists now use statistical and econometric methods. Verification consists in confirming whether the hypothesis is in agreement with facts. A hypothesis is true or not can be verified by observation and experiment. Since economics is concerned with human behaviour, there are problems in making observation and testing a hypothesis.

    For example, the hypothesis that firms always attempt to maximise profits, rests upon the observation that some firms do behave in this way. This premise is based on a priori knowledge which will continue to be accepted so long as conclusions deduced from it are consistent with the facts. So the hypothesis stands verified. If the hypothesis is not confirmed, it can be argued that the hypothesis was correct but the results are contradictory due to special circumstances.

    Under these conditions, the hypothesis may turn out to the wrong. In economics, most hypotheses remain unverified because of the complexity of factors involved in human behaviour which, in turn, depend upon social, political and economic factors. Moreover, controlled experiments in a laboratory are not possible in economics. So the majority of hypotheses remain untested and unverified in economics.

    Merits of Deductive Method:
    The deductive method has many advantages.

    (1) Real:

    It is the method of “intellectual experiment,” according to Boulding. Since the actual world is very complicated, “what we do is to postulate in our own minds economic systems which are simpler than reality but more easy to grasp. We then work out the relationship in these simplified systems and by introducing more and more complete assumptions, finally work up to the consideration of reality itself.” Thus, this method is nearer to reality.

    (2) Simple:

    The deductive method is simple because it is analytical. It involves abstraction and simplifies a complex problem by dividing it into component parts. Further, the hypothetical conditions are so chosen as to make the problem very simple, and then inferences are deduced from them.

    (3) Powerful:

    It is a powerful method of analysis for deducing conclusions from certain facts. As pointed out by Cairnes, The method of deduction is incomparably, when conducted under proper checks, the most powerful instrument of discovery ever wielded by human intelligence.

    (4) Exact:

    The use of statistics, mathematics and econometrics in deduction brings exactness and clarity in economic analysis. The mathematically trained economist is able to deduce inferences in a short time and make analogies with other generalisations and theories. Further, the use of the mathematical-deductive method helps in revealing inconsistencies in economic analysis.

    (5) Indispensable:
    The use of deductive method is indispensable in sciences like economics where experimentation is not possible. As pointed out by Gide and Rist, “In a science like political economy, where experiment is practically impossible, abstraction and analysis afford the only means of escape from those other influences which complicate the problem so much.”

    (6) Universal:

    The deductive method helps in drawing inferences which are of universal validity because they are based on general principles, such as the law of diminishing returns.

    Demerits of Deductive Method:
    Despite these merits, much criticism has been levelled against this method by the Historical School which flourished in Germany.

    1 .Unrealistic Assumption:

    Every hypothesis is based on a set of assumptions. When a hypothesis is tested, assumptions are indirectly tested by comparing their implications with facts. But when facts refute the theory based on the tested hypothesis, the assumptions are also indirectly refuted. So deduction depends upon the nature of assumptions. If they are unrealistic, in this method, economists use the ceteris paribus assumption. But other things seldom remain the same which tend to refute theories.

    2. Not Universally Applicable:

    Often the conclusions derived from deductive reasoning are not applicable universally because the premises from which they are deduced may not hold good at all time and places. For instance, the classicists assumed in their reasoning that particular conditions prevailing in England of their times were valid universally. This supposition was wrong. Prof. Lerner, therefore, points out that the deductive method is simply “armchair analysis” which cannot be regarded as universal.

    3. Incorrect Verification:

    The verification of theories, generalisations or laws in economics is based on observation. And right observation depends upon data which must be correct and adequate. If a hypothesis is deduced from wrong or inadequate data, the theory will not correspond with facts and will be refuted. For instance, the generalisations of the classicists were based on inadequate data and their theories were refuted. As pointed out by ircholson, “the great danger of the deductive method lies in the natural aversion to the labour of verification.”

    4. Abstract Method:

    The deductive method is highly abstract and requires great skill in drawing inferences for various premises. Due to the complexity of certain economic problems, it becomes difficult to apply this method even at the hands of an expert researcher. More so, when he uses mathematics or econometrics.

    5. Static Method:

    This method of analysis is based on the assumption that economic conditions remain constant. But economic conditions are continuously changing. Thus this is a static method which fails to make correct analysis.

    6. Intellectually:

    The chief defect of the deductive method “lies in the fact that those who follow this method may be absorbed in the framing of intellectual toys and the real world may be forgotten in the intellectual gymnastics and mathematical treatment.”

    The Inductive Method:
    Induction “is the process of reasoning from a part to the whole, from particulars to generals or from the individual to the universal.” Bacon described it as “an ascending process” in which facts are collected, arranged and then general conclusions are drawn.

    The inductive method was employed in economics by the German Historical School which sought to develop economics wholly from historical research. The historical or inductive method expects the economist to be primarily an economic historian who should first collect material, draw gereralisations, and verify the conclusions by applying them to subsequent events. For this, it uses statistical methods. The Engel’s Law of Family Expenditure and the Malthusian Theory of Population have been derived from inductive reasoning.

    The inductive method involves the following steps:

    1. The Problem:

    In order to arrive at a generalisation concerning an economic phenomenon, the problem should be properly selected and clearly stated.

    2. Data:

    The second step is the collection, enumeration, classification and analysis of data by using appropriate statistical techniques.

    3. Observation:

    Data are used to make observation about particular facts concerning the problem.

    4. Generalisation:

    On the basis of observation, generalisation is logically derived which establishes a general truth from particular facts.

    Thus induction is the process in which we arrive at a generalisation on the basis of particular observed facts.

    The best example of inductive reasoning in economics is the formulation of the generalisation of diminishing returns. When a Scottish farmer found that in the cultivation of his field an increase in the amount of labour and capital spent on it was bringing in less than proportionate returns year after year, an economist observed such instances in the case of a number of other farms, and then he arrived at the generalisation that is known as the Law of Diminishing Returns.

    Merits of Inductive Method:
    The chief merits of this method are as follows:

    (1) Realistic:

    The inductive method is realistic because it is based on facts and explains them as they actually are. It is concrete and synthetic because it deals with the subject as a whole and does not divide it into component parts artificially

    (2) Future Enquiries:

    Induction helps in future enquiries. By discovering and providing general principles, induction helps future investigations. Once a generalisation is established, it becomes the starting point of future enquiries.

    (3) Statistical Method:

    The inductive method makes use of the statistical method. This has made significant improvements in the application of induction for analysing economic problems of wide range. In particular, the collection of data by governmental and private agencies or macro variables, like national income, general prices, consumption, saving, total employment, etc., has increased the value of this method and helped governments to formulate economic policies pertaining to the removal of poverty, inequalities, underdevelopment, etc.

    (4) Dynamic:

    The inductive method is dynamic. In this, changing economic phenomena can be analysed on the basis of experiences, conclusions can be drawn, and appropriate remedial measures can be taken. Thus, induction suggests new problems to pure theory for their solution from time to time.

    (5) Histrico-Relative:

    A generalisation drawn under the inductive method is often histrico-relative in economics. Since it is drawn from a particular historical situation, it cannot be applied to all situations unless they are exactly similar. For instance, India and America differ in their factor endowments. Therefore, it would be wrong to apply the industrial policy which was followed in America in the late nineteenth century to present day India. Thus, the inductive method has the merit of applying generalisations only to related situations or phenomena.

    Demerits of Inductive Method:
    However, the inductive method is not without its weaknesses which are discussed below.

    (1) Misenterpretation of Data:

    Induction relies on statistical numbers for analysis that “can be misused and misinterpreted when the assumptions which are required for their use are forgotten.”

    (2) Uncertain Conclusions:

    Boulding points out that “statistical information can only give us propositions whose truth is more or less probable it can never give us certainty.”

    (3) Lacks Concreteness:

    Definitions, sources and methods used in statistical analysis differ from investigator to investigator even for the same problem, as for instance in the case of national income accounts. Thus, statistical techniques lack concreteness.

    (4) Costly Method:

    The inductive method is not only time-consuming but also costly. It involves detailed and painstaking processes of collection, classification, analyses and interpretation of data on the part of trained and expert investigators and analysts

    (5) Difficult to Prove Hypothesis:

    Again the use of statistics in induction cannot prove a hypothesis. It can only show that the hypothesis is not inconsistent with the known facts. In reality, collection of data is not illuminating unless it is related to a hypothesis.

    (6) Controlled Experimentation not Possible in Economics:

    Besides the statistical method, the other method used in induction is of controlled experimentation. This method is extremely useful in natural and physical sciences which deal with matter. But unlike the natural sciences, there is little scope for experimentation in economics because economics deals with human behaviour which differs from person to person and from place to place.

    Further, economic phenomena are very complex as they relate to man who does not act rationally. Some of his actions are also bound by the legal and social institutions of the society in which he lives. Thus, the scope for controlled experiments in inductive economics is very little. As pointed Out by Friendman, “The absence of controlled experiments in economics renders the weeding out of unsuccessful hypo-these slow and difficult.”

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  458. Avatar Ezema Benedicta Nkemjika PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT Reg. No. 20035653JA says:
    4 years ago

    The methods of analysis used by Economists are Deductive method and Inductive method

    The Deductive method is also called Abstract method, Analytical method and priori method; it’s conclusions are derived from general truths, it proceeds from general to particular or specific.
    Deductive method involves reasoning from a few fundamental propositions, the truth of which is assumed .

    The Inductive method which is also known as empirical method; it’s conclusions are derived from particular facts, it proceeds from particular to general, it involves collection of facts, drawing conclusions from them and testing the conclusion by other facts or rather develops a theory to fit that facts.

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  459. Avatar EZENWA CYNTHIA OLUCHI says:
    4 years ago

    Name: EZENWA CYNTHIA OLUCHI
    Reg no: 20890358EF
    Email: ezenwacynthia2001@outlook.com
    DEDUCTIVE METHOD
    INDUCTIVE METHOD

    INDUCTIVE METHOD: This is a method which enables economist proceed from a practical angle or perspective to problems of science in other to reduce the gulf between theory and Practice. Induction is done by two forms which includes; Experimentation and Statiscal forms.
    ADVANTAGES OF INDUCTIVE METHOD
    1; It is highly practical, and realistic as it describe things as they are.
    2; It helps to verify the conclusions of the Deductive Method.

    DEDUCTIVE METHOD

    Deductive Method is based mainly on assumptions which are perfectly valued if assumptions are wrong assumptions will be imperfect and valid.All Economic laws are based on too many Assumptions where are more scope for committing errors through wrong hypothesis.Deductive generalisation started on wrong premises will be very dangerous when such generalisation claim universal validity.then such faulty generalisation are made of in framing government policies, the result will be nothing but disastrous.Deductive method can also be called a priori reasoning.
    ADVANTAGES OF DEDUCTIVE METHOD
    1; It is a simple method which doesn’t involve the use of any complex software analysis.
    DISADVANTAGES OF DEDUCTIVE METHOD
    In this method of

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  460. Avatar Udeh Shedrack O says:
    4 years ago

    NAME : Udeh Shedrack O

    DEPARTMENT : Public Administration and Local government

    EMAIL : udehjamb202049@gmail.com

    MATRIC Number : 2020/243256

    METHODS OF ECONOMICS ANALYSIS
    DEDUCTIVE METHOD
    INDUCTIVE METHOD

    DEDUCTIVE METHOD: This involves the process of reasoning from certain laws or principles which are assuming to be true to the analysis of facts .The deductive method derives new conclusions from fundamental assumptions or from established facts.
    Deductive method involves four steps :
    Selecting the problem .
    The formulation of assumption on the basis of which the problem is to be explored .
    The formulation of hypothesis through process of logical reasoning whereby interference are drawn . mathematics is mostly used in this method .
    Verifying the hypothesis: In this the economist use statistical and econometric method .This final step is all about confirming whether the hypothesis is in agreement.

    INDUCTIVE METHOD : This is the investigation, observation, arrangement, classification and interpretation of facts and empirical testing of facts used to formulate laws and finally establishing principles, proposition, generalization theories and laws used for the analysis, prediction and forecasting of economic problems and solutions .The inductive method is realistic because it is based on facts and explains them as they actually are .it also helps in future enquires .

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  461. Avatar Obidigwe Deborah udochukwu says:
    4 years ago

    Obidigwe Deborah udochukwu
    20157105HA
    Obidigwedeborah @ Gmail.com
    Public administration and local government
    Economic analysis involves the formulation of certain laws and generalisation through two methods
    Deductive and inductive method
    Deductive method:
    1.observation of the task, 2.Making hypothesis and 3.testing the hypothesis using more observation.firstly we perceive the problem to be enquired into
    ,In any scientific enquiry,the analyst or theorist must have a clear idea of the problem to enquired into.secondly defining precisely the various term to be used as well as state clearly the assumption he makes to derive generalisation.thirdly testing the hypothesis,after deducing hypothesis there is need that the hypothesis obtained should be tested or verified.
    Inductive method: the inductive method which is also called empirical method derives economic generalisation on the basis of experience and observation.in the method detailed data are collected with regards to certain phenomenon and effort is made to arrive at certain generalisation which follow from the observation. There are three ways which can be used for defining economic principle and theories ,they are observation,experimentation and statistical or econometric method.similarly to deductive method, in inductive method method you will identify your problem, define technical terms and variables related to the problem.

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  462. Avatar Okafor makua chibuike says:
    4 years ago

    Name:Okafor makua chibuike
    Reg no:2020/243236
    Department:Public administration and local government

    Answer:These are the basic method of Economic analysis used by Economist:
    *Deductive method of analysis
    *Inductive method of analysis
    I will like to start from Deductive method which is known as the analytical abstract ,a priori method and it represents an abstract approach to the derivation of economic generalization and theories. It normally starts with certain formal data and assumption then by logical Reasoning we arrive at a certain conclusion. It’s also known as hypothetical method because some assumption on may not correspond to actual facts.Actually a complete for of Deductive method consist of these three stage;
    *OBSERVATION
    *DEDUCTIVE REASONING
    *INSTANCE AND TESTING BY MEANS OF FURTHER OBSERVATION..
    Most of Economist prefer this Deductive method of economic analysis Is becauseIt is exceedingly simple,this means that,for example, the law that the utility derived by an individual from a commodity goes on a diminishing with every successive addition is a self evident truth which we may draw logical conclusion from..Another one is that it results in accuracy and exactness in generalization because of logical reasoning.They also face a lot of problems using the Deductive method of analysis,one of them is that Deductive method of analysis is based mainly on assumption which are perfectly valid.if assumption are wrong,generalization made on the basis of wrong assumption will be invalid or void etc
    Now we go over to INDUCTIVE METHOD OF ANALYSIS
    Inductive method of analysis is almost the same with Deductive just that it uses economic packaging to conduct experiment ..it is done by two forms which are experimental and statisticalFacts are collected first, arranged and conclusion are drawn…it is generally associated with the statistical form of induction.Its statistical approach does more economic investigations than the experimentation therefore it’s indispensable for formulation economic policy. Here are some reason why Economist use this method of analysis:
    It’s because it’s highly partical add realistic as it describes things how they are..also it’s helpful in conclusion of deductive method..They also face problems using this method of analysis one of them is when the investigators lack balanced judgment,there is risk of drawing conclusions based on inadequate and irrelevant facts and data and also collection of facts and data in inductive process is a complex job that requires an extra ordinary understanding to economic from non economic factors.

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  463. Avatar Oduenyi Chiamaka Promise says:
    4 years ago

    Name: Oduenyi Chiamaka Promise
    Matric number: 2020/243241
    Department: Public Administration and Local Government
    Email address: promiseoduenyi@gmail.com

    There are two basic methods of analysis used by economist. They are:
    1. Deductive Method
    2. Inductive Method

    DEDUCTIVE METHOD

    The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods. This method represents an abstract approach to the derivation of economic generalisations and theories.

    Various steps in deductive method:
    (1) Selecting the problem which must be clearly stated.
    (2) The formulation of assumptions on the basis of which the problem is to be explored. This assumptions are formulated to serve as a basis for hypothesis.
    (3) The formulation of hypothesis through the process of logical reasoning whereby inferences are drawn.
    (4) Verifying the hypothesis. In the absence of controlled experiments, hypothesis are tested through direct observation of man and the events happening around him.

    INDUCTIVE METHOD

    The inductive method is an ascending process in which facts are collected, arranged and then general conclusions are drawn. Here, economic generalisations are derived on the basis of experiments and observation.

    Various steps in inductive method:
    1. Proper selection and clearly stating of the problem.
    2. Collection, enumeration, classification and analysis of data.
    3. Observation of accumulated data of different facts concerning the problems.
    4. Logical derivation of generalisation.

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  464. Avatar Onwubiaogu Fidelis Ikechukwu says:
    4 years ago

    Red Number: 2019/241776
    Dept: Pure and Industrial chemistry

    METHODS OF ANALYSIS USED BY ECONOMISTS
    1. Deductive Method.
    2. Inductive Method.

    * DEDUCTIVE METHOD:
    This can be also called “Priori Reasoning “. It is much like a scientific method. It starts from assumptions/facts and ends with conclusion (hypothesis or theory) using logical analysis or our own analytical abilities and/or skills.
    Stages involved are as follows;
    a) Perception of the problem (Observation).
    b) Defining of technical terms and making assumptions.
    c) Deducing of hypothesis through logical deduction.
    d) Testing and Verification of the hypothesis.

    * INDUCTIVE METHOD:
    It’s also called “Empirical Method”. Economic generalization is derived on the bases of experience and observation. Detailed data are collected with regards to a certain economic phenomenon and effort is made so as to arrive at a certain generalizations that follows from the collected observations (Number of observations collected has to be large).
    Steps taken for Inductive Method;
    a) Identify the problem.
    b) Define technical terms.
    c) Collecting of data about variables related to the problem and doing some preliminary thinking about possible function relationships between the relevant variables.
    d) Processing the data collected and finding out what relations between variables actually hold good and so develop a theory.
    e) If the theory developed agrees with the facts, a new reliable theory has been developed but when it does not agree with the facts it becomes a fallacy and rejected then a new theory is modified.
    Both Inductive and Deductive methods works hand in hand for an effective economic generalization. As Marshall pointed out “Induction and Deduction are both needed for scientific thought as the right and left foot are needed for walking”.

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  465. Avatar Asogwa obinna sunday says:
    4 years ago

    1:Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.

    *Deductive methods:This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    *Observation of a task/ issue
    *Making the hypothesis
    *Testing the hypothesis using more observations, etc.
    Advantage of deductive method:
    *It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    *This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of deductive method:
    *In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions.
    *Inductive method:This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.The stages in this method are:

    *Observation
    *Formulation of a hypothesis
    *Generalizing principles
    *Verifying against actual facts.
    Advantages of inductive method:
    *Since it is based on facts it is more realistic and reliable.
    *Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    *Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of inductive method:
    *If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    *It is a time-consuming process and thus expensive as well.
    *The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

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  466. Avatar uchechukwu Anthony chinaecherem 20864960CA says:
    4 years ago

    1:WHAT ARE THE BASIC METHOD OF ANALYSIS USED BY ECONOMIST?
    They are:
    i: Inductive method
    ii: Deductive method

    2: BRIFLY AND CONVINCINLY DISCUSS EACH OF THEM?
    I: Inductive method : we use what is called econometric package to run this method. It is the reasoning that flows from facts to theory. First we collect data and facts and then move to words providing evidence using economic facts. This method formulates principles using the sub-method , observation and experimentations.

    2: DEDUCTIVE METHOD: This is also called prior reasoning. We start from unchallenged elementary or rudimentary assumptions, facts and then arrive at conclusion using logical analysis or our own analytical abilities.

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  467. Avatar Ngwoke chukwuemeka Kingsley says:
    4 years ago

    There are two basic methods of economic analysis used by economists they are
    1Deductive
    2Inductive

    Deductive method
    It is also known analytical abstract ,a prior method. It normally starts with certain formal data and assumption then by logical reasoning we arrive at certain conclusion. It is also known as hypothetical method because some assumption may not correspond to actual facts.
    A complete form of deductive method consists of three stages
    1Observation
    2Deductive reasoning
    3Instance and testing by means o further observation
    Most of economist prefer this deductive method of economic analysis because it is exceedingly simple ,this means that ,for example, the law that utility derived by an individual from a commodity goes on diminishing with every successive addition is a self_evident truth from which we may draw many logical conclusion. Another one is that it results in accuracy and exactness in generalization because of logical reasoning. They also face a lot of problems using deductive method of analysis like it is based mainly on assumption which are perfectly valid .it assumption are wrong generalization made on the basics of wrong assumption will be invalid etc
    Inductive method
    This method is also called empirical method it was adopted by the historical school of economists .it involves the process of reasoning from particular facts to generate principle .This method derives economic generalization on the basics of
    *experimentation
    *observation
    *statistical method
    In this method data is collected about a certain economic phenomenon.
    Steps involved in inductive method are
    *observation
    *formation of hypothesis
    *Generalization
    *verification
    Some of the advantages of using inductive method is that it is based on facts as such ,the method is realistic. Another one is that in order to test the economic principle,this method makes statistical techniques .The inductive method is therefore more reliable.
    There are also some faced with this method one of them is that if conclusions is drawn from insufficient data ,the generalization may be faulty .Again the collection of data itself is not an easy task .The source and methods employed in the collection of data differ from investigators ,the result therefore may differ even with the same problem. It is also time consuming and expensive .
    Conclusion: the above analysis reveals that both methods have weakness .we cannot rely exclusively on any one of them. Modern economists are of the view that both methods are complementary .They partners and not rivals .

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  468. Avatar IKAH KINGSLEY CHUKWUEMEKA says:
    4 years ago

    NAME IKAH KINGSLEY CHUKWUEMEKA
    DEPT: PUBLIC ADMINISTRATION & LOCAL GOVERNMENT
    REG NO : 20133170EF

    What are the basic methods of analysis used by Economists? Briefly and convincingly discuss each of them

    Answer

    An economic theory derives laws or generalizations through two methods:

    (1) Deductive Method and
    (2) Inductive Method.

    Both methods come from science, viz., Logic. The deductive method involves reasoning from a few fundamental pro­positions, the truth of which is assumed. The inductive method involves collection of facts, drawing conclusions from them and testing the conclusions by other facts

    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).

    Merits of Deductive Method:

    The main merits of deductive method are as under:

    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.

    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    Demerits of Deductive Method:

    It is true that deductive method is simple and precise, underlying assumptions are valid.

    (i) The deductive method is simple and precise only if the underlying assumptions are valid. More often the assumptions turn out to be based on half truths or have no relation to reality. The conclusions drawn from such assumptions will, therefore, be misleading.

    (ii) Professor Learner describes the deductive method as ‘armchair’ analysis. According to him, the premises from which inferences are drawn may not
    hold good at all times, and places. As such deductive reasoning is not applicable universally.

    (iii) The deductive method is highly abstract. It require; a great deal of care to avoid bad logic or faulty economic reasoning.

    As the deductive method employed by the classical and neo-classical economists led to many facile conclusions due to reliance on imperfect and incorrect assumptions, therefore, under the German Historical School of economists, a sharp reaction began against this method. They advocated a more realistic method for economic analysis known as inductive method.

    (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) Experimentations (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.

    Advantages of Inductive Method

    Since it is based on facts it is more realistic and reliable.

    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.

    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of Inductive Method

    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.

    It is a time-consuming process and thus expensive as well.

    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    (iii) The inductive method is time-consuming and expensive.

    Conclusion:

    The above analysis reveals that both the methods have weaknesses. We cannot rely exclusively on any one of them. Modern economists are of the view that both these methods are complimentary. They partners and not rivals. Alfred Marshall has rightly remarked:

    “Inductive and Deductive methods are both needed for scientific thought, as the right and left foot are both needed for walking”.

    Reply
  469. Avatar Benson Chiemerie Samuel says:
    4 years ago

    Name: Benson Chiemerie Samuel
    Department: public administration and local government
    Matric no: 2020/243279
    The basis method of analysis used by economist are inductive method and deductive method.
    Inductive method: it is also called emprical method. It is derived from economic generalization. In this method, data are collected from different source and effort is being made to amount certain generalization which are being observed when collected.
    Deductive method: it is also called abstract or analytical method. It represent an abstract approach to the derivation of economic generalization and theories.

    Reply
  470. Avatar OMEKE HILLARY NNAMDI says:
    4 years ago

    NAME: OMEKE HILLARY NNAMDI
    DEPT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT
    MATRIC NUMBER: 2020/243238
    REG NUMBER: 20684661GA

    QUESTION: WHAT ARE THE BASIC METHOD OF ANALYSIS USED BY ECONOMISTS? BRIEFLY AND CONVINCINGLY DISCUSS EACH OF THEM.

    Method of Economics analysis like any other science, economics adopts two important methods namely: (1) DEDUCTIVE METHOD and (2) INDUCTIVE METHOD.

    (1). Deductive method:
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/facts and then arrive at conclusion (build a hypothesis or theory) using logical analysis or analytical abilities. In this kind of reasoning, we go from general to specific.

    (2). Inductive method:
    This type of reasoning flows from facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods, observations, experimentations, statistical methods.

    Reply
  471. Avatar Okonkwo Adaobi cynthia says:
    4 years ago

    The method of analysis used by economists are:
    1.Deductive method: This is also called priori reasoning. An unchallenged elementary facts and then arrive at a conclusion(build a theory) using logical analysis.
    The stages in Deductive reasoning are:
    * Observations of a task
    * Making the hypothesis
    * Testing the hypothesis using more observations etc.
    It is also a simple method, its doesn’t involve the use of any complex software analysis, it is important for economist as it focuses upon economic reasoning which is of paramount importance.
    Also in this method of reasoning we start from assumption happen to be logically flawed the whole process becomes faulty and would give wrong conclusion. Thus,the logical fallacy is a disadvantage of this method.
    2.Inductive method
    This type of reasoning flows from facts to theory it deals with the collection of information and facts and move towards providing evidence using economic theory. This method formulate principle using the sub method-observations, experimentation, statistical methods.
    The stages in inductive are:
    * Observations
    * Formulation of a hypothesis
    * Generalizing principle
    It is based on facts,it is more realistic and reliable. Using statistical method and experimentation makes the process more scientific. If the data used is insufficient and faulty,it would lead to faulty conclusion making the hypothesis less reliable

    Reply
  472. Avatar Ude KENECHI EYERIBE says:
    4 years ago

    Name: UDE KENECHI EYERIBE
    dept::. PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT
    reg no. 20649620if

    METHOD OF ECONOMIC ANALYSIS
    ( I,) ..inductive reasoning
    (Ii)….deductive reasoning
    Both methods come from science, viz., Logic. The deductive method involves reasoning from a few fundamental pro­positions, the truth of which is assumed. The inductive method involves collection of facts, drawing conclusions from them and testing the conclusions by other facts..
    DEDUCTIVE METHOD

    (I)..Starts from the general and moves to the particular.

    ii. Begins with general assumptions and moves to particular conclusions.

    iii. Develops a theory, and then examines the facts to see if they follow the theory.
    INDUCTIVE REASONING
    (I).. Starts from the particular and moves to the general.

    ii. Begins with particular observations and moves to general explanations.

    iii. Collects observations, then develops a theory to fit the facts..
    ….
    Thus the down­ward sloping demand curve, for example, can be deduced from general assumptions about how people try to maximise their satisfaction from the purchase of goods and services. On the other hand, demand curves can be built up empirically, that is by observing actual customers reacting to market price changes, and when market researchers, census-takers and opinion pollsters collect neces­sary information, the data can be used inductively to make economic predictions.

    In practice it can be very difficult to say where deduction ends and induction begins. Economists need to use both deduction and induction in their work.

    Reply
  473. Avatar Anekwu Somkene says:
    4 years ago

    1, There are two methods of economic analysis which are;
    a,DEDUCTIVE METHOD and
    b,INDUCTIVE METHODS.

    Deductive method which can also be called priori method. It starts from unchallenged elementary assumption or details and then arrive at the conclusion by building hypothesis or theories using logical analysis.
    Processes or stages of deductive method
    1, by observing a task
    2, by making the hypothesis
    3, by testing the hypothesis using more observation.

    Inductive method, this type of method flow from facts to theories by collecting the information or details and then providing evidence using economic facts.
    Processes or stages of inductive method
    1, by observing
    2, by putting together the hypothesis
    3, by generalizing principles
    4, by testing the hypothesis
    5, by proving the facts.

    Name: Anekwu Someone
    Department: Public administration and local government
    Reg no: 20164271FF
    Email: anekwusomkene160@gmail

    Reply
  474. Avatar ODITA CHISOM EMMANUEL says:
    4 years ago

    Name: ODITA CHISOM EMMANUEL
    REG NO; 20744062CF
    Email; Chisomodita9@gmail.com

    1; DEDUCTIVE METHOD
    2; INDUCTIVE METHOD

    -DEDUCTIVE METHOD
    Deductive Method is also called a priori
    reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions ( build hypothesis or theory) using logical analysis or own analytical abilities. In this kind of reasoning we go from general to specific. The stages in Deductive reasonings are;
    – Observation of a task /issue
    – Making the hypothesis
    – Testing the hypothesis using more observation
    ADVANTAGE OF DEDUCTIVE METHOD
    1; It doesn’t involve the use of any complex software analysis etc only simple Deductive logic is required.
    2; The method is important for Economists as it focuses upon economic reasoning which is the Paramount importance.
    DISADVANTAGES OF DEDUCTIVE METHOD
    In this method of reasoning we start from assumptions, thus, if the assumptions happens to be logically flawed the whole process becomes faulty and would give wrong conclusions.

    INDUCTIVE METHOD
    The Inductive Method Is generally associated with the statistical form of Induction. The statistical approach has a larger field in economic investigation than the method of experimentation. Further, the method of statistical Induction is indispensable for the formulation of Economic policy.
    ADVANTAGE OF INDUCTIVE METHOD
    1; In order to test the Economic principle,method makes statistical techniques.
    2; Inductive method is dynamic, the changing Economic phenomenon are analyzed and on the bases of collected data, conclusion and solutions are drawn from them
    DISADVANTAGE OF INDUCTIVE METHOD
    1; The collection of data itself is not an easy task. the source and method employed in the collection of data differs from investigator to investigator.
    2; The Inductive Method Is time consuming and expensive.

    Reply
  475. Avatar Victor uzoagbado says:
    4 years ago

    NAME: VICTOR OBINNA UZOAGBADO
    DEPT :PUBLIC ADMINISTRATION & LOCAL GOVERNMENT.
    REG:22050803EA

    METHODS OF ANALYSIS USED BY ECONOMISTS;
    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.

    DEDUCTIVE METHOD:
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    °Observation of a task/ issue
    °Making the hypothesis
    °Testing the hypothesis using more observations, etc.
    °This reasoning gives us a hypothesis

    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    ADVANTAGES OF DEDUCTIVE METHOD
    1. It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    2. This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    DISADVANTAGES OF DEDUCTIVE METHOD
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    INDUCTIVE METHOD
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    ___Observation
    ___Formulation of a hypothesis
    ___Generalizing principles
    ___Verifying against actual facts.

    ADVANTAGES OF INDUCTIVE METHOD
    ___Since it is based on facts it is more realistic and reliable.
    ___Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    ___Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    DISADVANTAGE OF f INDUCTIVE METHOD
    ___If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    ___It is a time-consuming process and thus expensive as well.
    ___The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  476. Avatar Ogujiuba Esther Chibuzor says:
    4 years ago

    NAME: ogujiuba Esther Chibuzor
    MATRIC NUMBER: 2020/243295
    DEPARTMENT: public administration

    The basic method of analysis used by economist are the deductive and inductive methods

    Deductive method: This is the experimental method of economics analysis. In deductive method of economics analysis,we proceed from general to particular. This can also be known as the hypothetical method for some of the assumptions may not correspond to actual facts ,but near facts may be used as premise for starting reasoning and drawing conclusions.

    INDUCTIVE METHOD: This is also know as the empirical method.it involes the process of reasoning from particular facts to general principle .This method derives economic generalization on the basis of experimentation, observations and statical methods.

    Reply
  477. Avatar Johnchris Collete Mmachukwu 2020/243215 says:
    4 years ago

    1. In Deductive method of Economic Analysis we proceed from the general to the particular. This is also known as an hypothetical method for some of the assumptions may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions. And the stages are ; 1. Observation of a task
    2. Making the hypothesis . E.t.c

    2.Inductive reasoning, or inductive logic, is a type of reasoning that involves drawing a general conclusion from a set of specific observations. Some people think of inductive reasoning as “bottom-up” logic, because it involves widening specific premises out into broader generalizations. And the stages are;
    1. Observation
    2. Formulation of a hypothesis
    3. Generalising principles
    4. Verifying against actual facts

    Reply
  478. Avatar Onovo Ifeanyichukwu Anthony... says:
    4 years ago

    Name: Onovo Ifeanyichukwu Anthony
    Department: Public administration and local government
    Reg number: 20652592ef

    DEDUCTIVE METHOD OF ECONOMIC ANALYSIS: This is also called an abstract, analytical and prior
    reasoning. It represents an abstract approach to the derivation of economic generalisation and theories. It also consist in deriving conclusion from general truth taken a few general principle and applies them to draw conclusion, from fundamental assumption or from truth established by other methods.
    Deduction involves four steps:

    1: Selecting the problem.
    2: The formulation of assumptions on the basis of which the problem is to be explored.
    3: The formulation of hypothesis through the process of logical reasoning whereby inferences are drawn.
    4: Verifying the hypothesis.

    INDUCTIVE METHOD OF ECONOMIC ANALYSIS: This type of reasoning can also be called empirical method. It flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. It also involves the process of reasoning from particular facts to general principle. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Reply
  479. Avatar Ezeilo Victor Ogochukwu says:
    4 years ago

    Name:Ezeilo Victor Ogochukwu
    Matric number: 2020/243274
    Dept:PALG

    The basic methods are
    1) Deductive method
    2) Inductive method

    Deductive method:This method entails identification of the problem, which is the first step economists use.
    Then defining the technical terminologies which leads to providing the method…..also deals with running an hypothesis, lik a test over a period of years then the result would either be accepted or rejected

    Induction method: inductive reasoning, we begin with specific observations and measures, begin to detect patterns and regularities, formulate some tentative hypotheses that we can explore, and finally end up developing some general conclusions or theories
    And it deals with econometric packages distributing software packages lik SPSS

    Reply
  480. Avatar Odo Ernest ebuka says:
    4 years ago

    Course:Eco 101
    Name:odo Ernest ebuka
    Department:palg
    Reg No:2020/243198
    Some of the most important methods of economic analysis are as follows: 1. Deductive Method 2. Inductive Method.

    Economic generalisations describe the laws or statements of tendencies in various branches of economics such as production, consumption, exchange and distribution of in­come. In the view of Robbins, economic generalisations or laws are statements of uniformities which describe human behaviour in the allocation of scarce resources between alternative ends.

    The generalisations of economics like the laws of other sciences, state cause and effect relation­ships between variables and describe those economic hypotheses which have been found consistent with facts or, in other words, have been found to be true by empirical evidence. But a distinction may be drawn between a generalisation (law) and a theory.

    Reply
  481. Avatar Aboh Faith Ngbo-oyibo says:
    4 years ago

    The Basic Methods of Economic Analysis
    Economic analysis involves the formulation of laws and generalization.
    There are two methods of economic analysis, which are Deductive and Inductive methods.
    (1) DEDUCTIVE Method ; This is also called Abstract, analytical and priori method, it represents and abstract approach to the derivation economic generalizations and theories.
    Steps to the process of using Deductive method includes;
    *. Perception of problem to be enquired; In any scientific enquiry, the analyst or theorist must know the significant variables regarding whose behavior and interelationship he wants to derive generalizations.
    *. Defining precisely the technical terms and making appropriate assumption, often called postulates or premises; the next step is to define precisely and unambiguously the various technical terms to be used in the analysis as well as to state clearly the assumptions he makes to derive generalizations.
    * Deducing hypothesis through logical reasoning; A hypothesis describes relationship between factors affecting a phenomenon.
    * Testing or verification of hypothesis

    (2) INDUCTIVE Method; It is also called empirical method. It was adopted by the historical school of economist. Ut involves the process of reasoning from particular factors to general principle.
    This method derives economic generalizations on basis of
    * Experiments
    * Observation
    * Statistical methods
    The Steps
    * Observation
    * Formation of hypothesis
    * Generalizations
    *Verification.

    Reply
  482. Avatar Gabriel Eucharia says:
    4 years ago

    REGISTRATION NUMBER 29786448CA
    FACULTY _Social science education/education and economic
    ASSIGNMENT (ECO 101)
    What are the basic methods of analysis used by economists? Briefly and convincingly discuss each of them.
    ANSWER
    The basic methods of analysis used by economists are;
    (1) Inductive reasoning and
    (2) Deductive reasoning
    (1) Inductive reasoning is a type of reasoning that involves drawing a conclusion from a set of specific observations.some people think of Inductive reasoning as “bottom_up” logic, because it involves widening specific premises out into broader generalisations. Here is an example of Inductive reasoning;
    ” the left_handed people I know use
    left_handed scissors; therefore, all
    left_handed people use left_handed
    scissors”. In this example below, the conclusion is actually wrong, because there are also left handed people who used right _handed scissors.this is what we called a weak argument or reasoning which is called Inductive reasoning.
    TYPES OF INDUCTIVE REASONING
    (1) Inductive generalisations; this is seen in the example I gave about ”the Left handed people”. It uses a sample set to draw conclusion about a whole population.
    (2) Statistical induction; this is similar to Inductive generalisation.for example;
    ”since 95 percent of the left_handers I
    have seen around the world use
    left_handed scissors, therefore,95
    percent of left handers around the world
    use left handed scissors”.
    (3) Causal inference; In Causal inference, Inductive reasoning,use Inductive logic to draw a Causal link between a premises and hypothesis.for example;
    ”In the summer,there are ducks on our
    pond. Therefore, summer will bring
    ducks to our pond”.
    (4) Analogic induction; this is a type of Inductive reasoning we draw an hypothesis by analysing two similar premises and their similarities.for example;
    (i) Mary and Martha are left_handed and use left_handed scissors.
    (ii)Ali is also left _handed. ( In conclusion;
    Ali also uses left_handed scissors.
    (5) Predictive induction; this is where we might draw a conclusion about the future using information from the past.for example;
    ”In the past, ducks have always come to
    our pond. Therefore, the ducks will come
    to our pond this summer” .
    (6) Bayesian Induction; this is a method of adapting Statistical reasoning to take into account new or additional data.
    (2). DEDUCTIVE REASONING
    Is a method of economic analysis we proceed from the general to the particular one.this is known as an hypothetical method for some of the assumptions may not correspond to actual facts, but very near the actual facts which may be used as premises for starting reasoning and drawing conclusion.it involves the process of reasoning from certain laws or principles, which are assumed to be true,to the analysis of facts. For example;
    ” All men are mortal and Hassan is a
    man” . therefore, ”Hassan is a mortal”.
    For Deductive reasoning to be sound,the hypothesis must be correct.it is assumed that the premises, ”All men are mortal” and ”Hassan is a man”,are true.
    TYPES OF DEDUCTIVE REASONING
    (1) Syllogism; this almost always appear in the three line form, with a common term that appears in both premises but not the conclusion.for example;
    (i)” All men are mortal”.(first premises)
    (ii)” Hassan is a man”.(second premises)
    (iii) Therefore,”Hassan is a mortal”.(conclusion).
    (2) Modus Ponens; this type of reasoning is also known as ”affirming the antecedent”, because only the first premises is a conditional statement,and the second premises merely affirms the first part of the previous statement applies.for example;
    (i) If a person is born between 1981 and 1996, then they are millennial.
    (ii)Miley was born in 1992
    (iii) therefore,Miley is a millennial.
    (3) Modus Tollens or the law of Contrapositive; it is the opposite of Modus Ponens, because of it’s second part(consequent) of the previous conditional statement.for example;
    (i)If a person is born between 1996,then they are a millennial.
    (ii)Ali is not a millennial
    (iii) therefore,Ali was not born between 1981 and 1996.
    In conclusion the difference between Deductive reasoning and Inductive reasoning is that, Deductive reasoning is one of the two basic types of reasoning that feature in a logical argument.the other is Inductive reasoning.where Deductive reasoning is top_down thinking,and Inductive argument is bottom_up,it starts with specific premises and draws a general conclusion from them.
    REFERENCE;
    Web search; http;//www.masterclass.com by Dan Brown, Billy Collins, Margaret Atwood.
    Personal experience.

    Reply
  483. Avatar IGBOEKEAMU EMMANUEL CHIBUZOR says:
    4 years ago

    Name : IGBOEKEAMU EMMANUEL IGBOEKEAMU
    REG NO; 20793312BF
    Email; emmychi750@gmail.com

    1; Deductive Method
    2; Inductive Method

    1; Deductive Method; Is a Analytical, or prior,the Deductive Method consist of deriving conclusions from general truth, take few general principle and apply them, draw conclusion.
    For instance if we accept the proposition that man is entirely motivated by self interest, in applying the Deductive Method of Economics analysis we proceed from general to particular
    STEPS OF DEDUCTIVE METHOD
    1; Perception of the problem to be inquired into
    2; Defining of terms
    3; Deducing Hypothesis from the Assumption
    4; Testing of Hypothesis

    2; INDUCTIVE METHOD
    In this method, Economists proceed from a particular angle, to problem of science to reduce the gulf between theory and Practices.Induction is done by two forms,cuz experimentation and statictical form. Factors are collected first, arranged and conclusion are drawn.Then this general conclusion are further verified with reference to actual facts.
    STEPS OF INDUCTIVE METHOD
    1; OBSERVATION
    2; FORMATION OF HYPOTHESIS
    3; GENERALIZATION
    4; VERIFICATION
    MERITS OF INDUCTIVE METHOD
    1; it’s based on facts, as such the method is realistic
    2; Induction method also helps in future investigation
    DEMERITS OF INDUCTIVE METHOD
    1; If conclusion drawn from insufficient data, the generalisation obtained maybe faulty
    2; The Inductive Method Is time consuming and expensive

    Reply
  484. Avatar onyekwere chetachukwu confidence says:
    4 years ago

    NAME: onyekwere chetachukwu confidence
    DEPT: PALG
    REG:2020/243247
    Email: onyekwere038@gmail.com

    The two methods of economic analysis are inductive reasoning and deductive reasoning.

    1. INDUCTIVE REASONING:
    This is also called priori reasoning. We start from unchallenged elementary or rudimentary assumption/ facts and then arrive at conclusion ( build a hypothesis or theory) using logical analysis or our own analytical ability in this kind of reasoning. We go from general to specific. The stages in deductive reasoning are:
    * Observation of a task / issue
    * Making the hypothesis
    * Testing the hypothesis using more observation etc
    This reasoning gives us hypothesis gets verified we gets general economic principals or laws.
    One of the advantages of the method is that it is simple method doesn’t involve the use of complex software analysis e.t.c simple deduction logic is required.
    2. DEDUCTIVE:
    This type of reasoning flows from facts to theory. First we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub methods observation, experiment, statical methods.
    Data is collected about a particular economic theory and then conclusion are drawn. The stages in this method are:
    * Observation
    * Formulation of a hypothesis
    * Generalizing principals
    * Verifying against actual facts
    One of the advantages is it is based on facts, it is more realistic and reliable.

    Reply
  485. Avatar Onedibe Oluebube Mercy says:
    4 years ago

    Onedibe Oluebube Mercy
    Jamb reg number:21418591HA
    Department: Business education
    Email: oluebubemercyonedibe@gmail.com

    The basic methods used by economist to analyze are Inductive and Deductive method

    Deductive method: is the method of bringing assumption and then arrive at conclusion by building hypothesis or theory using logical analysis.this method includes observing the issue,making hypothesis and testing the hypothesis using more observation.

    Inductive method: is the method of bringing information or fact and then move towards providing evidence using economic theory .this method uses observation, experimentation and statistics, generalizing principles and verifying the actual fact and then conclusion are drawn.

    Reply
  486. Avatar Nneji Favour chinenye says:
    4 years ago

    Nneji Favour chinenye
    Matriculation number:2020/243293

    Didictive method is also called abstract analytical and a priori method And represents and abstract approach to the derilvation of economic generalisation and theories

    Inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In the method detailed data are collected with regard to a certain economic phenomenon are the efforts is the made to arrive at a certain generalisation which follows from the observations collected.

    Reply
  487. Avatar ALOKA ANITA NNEKA says:
    4 years ago

    Name ;Aloka Anita Nneka
    Reg number ;20853472IA
    Department ;COMBINED SOCIAL SCIENCE (Economics and Psychology)
    Email address ;alokaanita@gmail.com
    Economic Analysis involves the formulation of laws and generalization through 2 Methods
    1)Inductive
    2)Deductive reasoning
    This are the two forms of logic that helps to establish the truth.
    1)Deductive Methods ;is also called Priori reasoning. This reasoning gives us a hypothesis and if this hypothesis is verified we get general economic principle or laws.
    The stages in deductive reasoning are;
    Observation of a task/issues
    Making and testing the hypothesis.
    2)Inductive Methods ;is also called Empirical Method, it derives Economic generalization on the basis of experience and Observation.

    Reply
  488. Avatar ODINIJEME FAVOUR NGOZI,Reg No-2019/245820 says:
    4 years ago

    Name: ODINIJEME FAVOUR NGOZI
    Reg No:2019/245820
    Question:What are the basic methods of analysis used by Economists? Briefly and convincingly discuss each of them.
    Solution.
    The most important methods of economic analysis are as follows: 1. Deductive Method 2. Inductive Method.

    Economic generalisations describe the laws or statements of tendencies in various branches of economics such as production, consumption, exchange and distribution of in­come. In the view of Robbins, economic generalisations or laws are statements of uniformities which describe human behaviour in the allocation of scarce resources between alternative ends.

    The generalisations of economics like the laws of other sciences, state cause and effect relation­ships between variables and describe those economic hypotheses which have been found consistent with facts or, in other words, have been found to be true by empirical evidence. But a distinction may be drawn between a generalisation (law) and a theory.

    1. Deductive Method:
    Generalisations in economics have been derived in two ways:

    (1) Deductive Method,

    (2) Induc­tive Method.
    We shall first explain the deductive method of deriving economic generalisations. The deductive method is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalisations and theories.

    The principal steps in the process of deriving economic generalisations through deductive logic are:

    (a) Perception of the problem to be enquired into;

    (b) Defining precisely the technical terms and making appropriate assumptions, often called postulate.
    (c) Deducing hypotheses, that is, deriving conclu­sions from the premises through the process of logical reasoning; and
    (d) Testing of hypothesis deduced
    (a) Perception of the Problem:
    In any scientific enquiry, the analyst or theorist must have a clear idea of the problem to be enquired into. He must know the significant variables regarding whose behaviour and interrelationship he wants to derive generalisations. The perception of the problem is by no means an easy task.

    (b) Definition of Technical Terms and Making of Assumptions:
    The next step in the process of deriving economic generalisations is to define precisely and unambiguously the various technical terms to be used in the analysis as well as to state clearly the assumptions he makes to derive generalisations.
    As mentioned above, assumptions may be behavioural pertaining to the behaviour of the economic variables or they may be technological relating to the state of technology and the factor endowments. The crucial assumptions are made on the basis of observations or introspection.
    (d) Testing or Verification of Hypotheses
    Hypotheses obtained above have to be verified before they are established as generalisations or principles of economics. For the verification of hypotheses, economists cannot make controlled experiments, because they have to discover unifor­mities in behaviour patterns of man.
    We cannot make experiments with man under controlled con­ditions, such as in laboratories as physical scientists make experiments with inanimate objects of nature and biologists make these with animals and plants. Therefore, economists have to rely on uncontrolled experience and observations.
    Testing of Economic Hypotheses through Statistical Methods:
    In recent years a very useful method to test economic hypothesis has been developed. This is the statistical method or what is now popularly called econometric method. The statistical or econometric method to verify and establish the theoretical generalisations occupies an important place because of the limited applicability of controlled experimentation in economics.
    Inductive Method:
    The inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.

    But, it is worth mentioning that the number of observations has to be large if it can yield a valid economic generalisation. One should not generalise on the basis of a very few observations. There are three ways which can be used for deriving economic prin­ciples and theories.

    They are:

    (a) Experimentation,

    (b) observations,

    (c) statistical or econometric method.

    As has been mentioned above, the experimentation, that is, the use of contrived experi­ments is of limited applicability in economics. First, unlike natural sciences which are concerned with analysing the behaviour of either inanimate objects or obedient animals such as rats and rabbits under the influence of chloroform, economics deals with the behaviour of man who is quite fickle, wayward and unmanageable.

    Besides, man cannot tolerate the idea of being experimented upon, either individually or collectively. Secondly, an economic phenomenon is the result of multiplicity of factors and causes acting and interacting upon each other.Therefore, economic phenomenon does not repeat itself in the same uniform pattern. Numerous factors acting on an economic phe­nomenon ‘disturb’ it and make its exact repetition unlikely. Thus, as compared with the natural phenomena, economic phenomena are of less uniform pattern, less repetitive and more variable.

    Thirdly, economists study the economic phenomena in which pressure groups such as employ­ers’ associations, trade unions, farming lobby, political parties with their different ideologies play a crucial part and their activities render it difficult to make controlled experiments in the economic world. However, in spite of these difficulties, experimental method can be used in some fields.
    Evaluation of Inductive Method:

    As has been explained above, observations of facts through collection of detailed data and the use of statistical methods to arrive at economic generalisations establishing relationship between facts are being increasingly made.

    Some of the recent researches in the field of macroeconomics, such as the nature of consumption function describing the relation between income and consump­tion, the principle of acceleration describing the factors which determine investment in the economy have been obtained through the use of mainly inductive method.

    However, it needs to be emphasised again that the use of induction or empirical method is not of much value if it is not supported by the economic hypothesis or theory developed by deductive logic. The inductive method can at best be used to empirically test the theory or hypothesis as to whether it is consistent with or refuted by facts.

    The inductive method has another limitation in that there is a great risk of conclusions being drawn from insufficient data. To obtain generalisations through inductive method, one should take care that sufficient number of observations or data has been taken into account.

    Reply
  489. Avatar Onedibe Oluebube Mercy says:
    4 years ago

    Onedibe Oluebube Mercy
    Jamb reg number:21418591HA
    Department: Business education
    Email: oluebubemercyonedibe@gmail.com

    The basic methods use by economist to analyze are Inductive and Deductive method
    Deductive method :This is a type of method that brings assumption and then arrive at conclusion by building hypothesis or theory using logical analysis,this stages include observing this issue,making hypothesis using more observation and then arrive at a conclusion.

    Inductive method:this is a type of method that bring information or fact and then move towards providing evidence using economic theory .this method uses observation, experimentation,and statistics , generalizing principles and verifying the fact so as conclusion will be drawn.

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  490. Avatar Anyanwu Chinazaekpere Mavis says:
    4 years ago

    Name:Anyanwu Chinazaekpere Mavis

    Department:Economics Education

    20156360JA

    Economic analysis involves the formulation of laws and generalizations through two methods, DEDUCTIVE and INDUCTIVE

    DEDUCTIVE METHOD:This is also called a Priori Reasoning.In this kind of reasoning we go from General to Specific .It requires stages which are

    Observation of task

    Making the hypothesis

    Testing the hypothesis. This method doesn’t involve complex software analysis,only simple deductive logic is required. This method is important for economists as it focuses upon economic reasoning which is of paramount importance. This method starts from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. This is called LOGICAL FALLACY .

    INDUCTIVE METHOD:This type of reasoning flows from facts to theory. We collect information and facts and then move towards providing evidence using economic theory and facts.This method formulates principles using the sub methods observations, experiments and statiscal methods. Data is collected about a particular economic theory and then conclusions are drawn.
    Using statiscal method and experimentation makes the process more scientific, thus , more acceptable universally rather than just depending on your own reasoning and logic .This method is time consuming and expensive as well. Collection of data is not an easy job and varies from person to person .Stages are

    Observation

    Formulation of hypothesis

    Generalizing principles

    Verifying against actual facts.

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  491. Avatar Ukachunwa Ransomed Okechukwu says:
    4 years ago

    Ukachunwa Ransomed Okechukwu
    20169033JA
    ransomedisrael@gmail.com

    The methods of Economic Analysis are:
    Deductive analysis
    Inductive analysis

    Deductive analysis: This is known as the a priori method. Here we start with certain formal data and assumptions. Then by logical reasoning we arrive at certain conclusions. We start with undisputed fundamental facts and after adding some assumptions we build up a theory. For instance, it is assumed that businessmen aim at maximum profit. It follows from this that businessmen buy the materials in the cheapest market and sell it in the dearest market.In Deductive method of Economic Analysis we proceed from the general to the particular. This is also known as an hypothetical method for some of the assumptions may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions. In economics we start with very simple premises and work up gradually or more and more complex hypotheses.
    Inductive analysis: This method, economists proceed from a practical angle to problems of science to reduce the gulf between theory and practice. Induction is done by two forms, viz. experimentation and statistical form. Facts are collected first, arranged and conclusions are drawn. Then these general conclusions are further verified with reference to actual facts.The inductive method is generally associated with the statistical form of inductions. The statistical approach has a larger field in economic investigations than the method of experimentation. Further, the method of statistical induction is indispensable for the formulation of economic policy. Malthus presented his famous theory of population only after studying the facts of population in various countries; He then used statistics to support his theory. Similarly Engel, the German statistician employed inductive method and used statistics to formulate his law of consumption.

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  492. Avatar Agu Juliet Ebube says:
    4 years ago

    Name : Agu Juliet Ebube
    Department : philosophy
    Reg no : 2020/243122

    The two methods of economic analysis are. ;
    1 . Deductive method
    2. Inductive method

    1. Deductive method I’d also called abstract ,
    analytical and a prior method and represents
    an abstract approach to the derivation of
    economic generalisation and theories .

    The principal steps in the process of deriving economic generalisation through deductive logic are :
    a . perception of the problem to be enquired
    into
    b. Defining precisely the technical terms and
    making appropriate assumptions , often
    called postulates or premises .
    c . deducing hypothesis, that is deriving
    conclusions from the premises through the
    process of logical reasoning .
    d . testing of the hypothesis deduced .

    2 . Indicative method which is also called empirical method derives economic generalisation on the basis of experience and observations . in this method detailed data are collected with regard to s certain economic phenomenon and effort is then made to arrive at certain generalisation with fellow from the observations collected .
    But it is Worth mentioning that the number of observation has to be large if it can yield a valid economic generalisation . one should not generalise on the basis of a very few observations.

    There are three ways which can be used for driving economic principles and theories through inductive method ;
    a. Experimentation
    b . observations
    c . statistical or economic method

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  493. Avatar Ezeoru Bernard Somtoo says:
    4 years ago

    In Economics we have two basic methods of economic analysis:
    <Deductive Method
    <Inductive Method

    • Deductive Method:
    This is also called a priori reasoning. Economist start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions which is the building of hypothesis or theory using logical analysis or his/her own analytical abilities. In this kind of reasoning, he/she goes from general to specifics. The stages in deductive reasoning are:

    ✓Observation of a task/ issue
    ✓Making the hypothesis
    ✓Testing the hypothesis using more observations, etc.
    This reasoning gives the Economist a hypothesis and if this hypothesis gets verified he gets general economic principles or laws.
    Economist use this method most because it's a simple method, doesn’t involve the use of any complex software analysis, etc. Only simple deductive logic is required. This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    •Inductive Method:
    This type of reasoning flows from facts to theory. First, the Economist collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods. Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    ✓Observation
    ✓Formulation of a hypothesis
    ✓Generalizing principles
    ✓Verifying against actual facts
    This method is good and efficient because since it is based on facts it is more realistic and reliable and using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.

    Reply
    • Avatar Ezeoru Bernard Somtoo says:
      4 years ago

      Reg No: 20111144HA
      Dept: Philosophy
      Faculty: Social sciences
      Name: Ezeoru Bernard Somtoo

      Reply
  494. Avatar Ezeh Amarachi Esther, 2019/243613 says:
    4 years ago

    The basic methods of analysis used by economists involves the formulation of laws and generalizations through two methods:
    I) Inductive method
    ii) Deductive method

    INDUCTIVE METHOD: This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    ADVANTANGES OF INDUCTIVE METHOD
    I) Since it is based on facts it is more realistic and reliable.
    ii) Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    III) Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    DISADVANTAGES OF INDUCTIVE METHOD
    I) If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    ii) It is a time-consuming process and thus expensive as well.
    III) The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    DEDUCTIVE METHOD: This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    * Observation of a task/ issue
    * Making the hypothesis
    * Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general eco nomic principles or laws.

    ADVANTAGES OF DEDUCTIVE METHOD
    I) It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    ii) This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    DISADVANTAGES OF DEDUCTIVE METHOD

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.
    DEDUCTIVE METHOD.
    Information
    Pattern
    Tentative hypothesis
    Theory

    INDUCTIVE METHOD
    Theory
    Hypothesis
    Observation
    Confirmation

    Reply
  495. Avatar Okafor chekwube Veronica. Reg no-2019/251602 says:
    4 years ago

    The basic method of analysis used by Economist are the Deductive and Inductive method.
    1 Deductive method_This is also called analytical or abstract method in the sense that it tells us about a hypothetical method. The assumption and results are not actually a true fact,it is not yet fully verified. The answers or facts gotten are nearly true.
    2 Inductive method_it is quite similar to the Deductive method. In this method,we make use of the econometric package,facts are collected, arranged and a conclusion is drawn. This conclusions drawn are further verified to get an actual fact. The result in this type of method are more accurate than the other.

    Reply
  496. Avatar Ezeh Amarachi Esther says:
    4 years ago

    The basic methods of analysis used by economists involves the formulation of laws and generalizations through two methods:
    I) Inductive method
    ii) Deductive method

    INDUCTIVE METHOD: This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.

    ADVANTANGES OF INDUCTIVE METHOD
    I) Since it is based on facts it is more realistic and reliable.
    ii) Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    III) Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    DISADVANTAGES OF INDUCTIVE METHOD
    I) If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    ii) It is a time-consuming process and thus expensive as well.
    III) The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    DEDUCTIVE METHOD: This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    * Observation of a task/ issue
    * Making the hypothesis
    * Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general eco nomic principles or laws.

    ADVANTAGES OF DEDUCTIVE METHOD
    I) It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    ii) This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    DISADVANTAGES OF DEDUCTIVE METHOD

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.
    DEDUCTIVE METHOD.
    Information
    Pattern
    Tentative hypothesis
    Theory

    INDUCTIVE METHOD
    Theory
    Hypothesis
    Observation
    Confirmation

    Reply
  497. Avatar Onwuachi paschal chimuanya says:
    4 years ago

    Name:onwuachi paschal chimuanya
    Reg no:2020/243306
    Department: Public administration and local Governments
    Faculty: social sciences

    Economic Analysis
    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.

    Methods of Economic Analysis

    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Deductive And Inductive Methods

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  498. Avatar NNAMANI CHIEMERIE DANIEL says:
    4 years ago

    NNAMANI CHIEMERIE DANIEL
    21676484EA
    PUBLIC ADMINISTRATION
    …
    THE BASIC METHOD OF ANALYSIS USED BY ECONOMIST ARE MAINLY:
    INDUCTIVE & DEDUCTIVE METHODS.

    INDUCTIVE METHOD: aims at developing a Theory.
    DEDUCTIVE METHOD:aims at testing an existing Theory.
    Moreover, Inductive Method deals with Observation,Generalizations,Paradigm.
    And Deductive Method deals with Experiments, Predictions.

    Reply
  499. Avatar Adeleye Samuel tolani, reg no:2173951EA (philosophy department) says:
    4 years ago

    Philosophy

    Reply
  500. Avatar Chukwuma chikamdabere Evidence says:
    4 years ago

    Methods of Economic Analysis: Deductive Method and Inductive Method.

    Some of the most important methods of economic analysis are as follows: 1. Deductive Method 2. Inductive Method.

    Economic generalisations describe the laws or statements of tendencies in various branches of economics such as production, consumption, exchange and distribution of in­come. In the view of Robbins, economic generalisations or laws are statements of uniformities which describe human behaviour in the allocation of scarce resources between alternative ends.

    The generalisations of economics like the laws of other sciences, state cause and effect relation­ships between variables and describe those economic hypotheses which have been found consistent with facts or, in other words, have been found to be true by empirical evidence. But a distinction may be drawn between a generalisation (law) and a theory.

    A law or generalisation just describes the relationship between variables; it does not provide any explanation of the described relation. On the other hand, a theory provides an explanation of the stated relation between the variables, that is, it brings out the logical basis of the generalisation. An economic theory or a model derives a generalisation through process of logical reasoning and explains the conditions under which the stated generalisation will hold true.

    1. Deductive Method:
    Generalisations in economics have been derived in two ways:

    (1) Deductive Method,

    (2) Induc­tive Method.

    ADVERTISEMENTS:

    We shall first explain the deductive method of deriving economic generalisations. The deductive method is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalisations and theories.

    The principal steps in the process of deriving economic generalisations through deductive logic are:

    (a) Perception of the problem to be enquired into;

    (b) Defining precisely the technical terms and making appropriate assumptions, often called postulates or premises;

    (c) Deducing hypotheses, that is, deriving conclu­sions from the premises through the process of logical reasoning; and

    (d) Testing of hypothesis deduced.

    (a) Perception of the Problem:
    In any scientific enquiry, the analyst or theorist must have a clear idea of the problem to be enquired into. He must know the significant variables regarding whose behaviour and interrelationship he wants to derive generalisations. The perception of the problem is by no means an easy task.

    (b) Definition of Technical Terms and Making of Assumptions:
    The next step in the process of deriving economic generalisations is to define precisely and unambiguously the various technical terms to be used in the analysis as well as to state clearly the assumptions he makes to derive generalisations.

    As mentioned above, assumptions may be behavioural pertaining to the behaviour of the economic variables or they may be technological relating to the state of technology and the factor endowments. The crucial assumptions are made on the basis of observations or introspection.

    A crucial assumption that has been taken in economics is that consumers try to maximise their satisfaction and producers try to maximise their profits. Likewise, it is assumed that investors try to minimise their risk and maximise the expected rate of their profits. Some of the assumptions are made merely to simplify the analysis and may not be quite realistic.

    The actual economic world is quite complex and full of details in which numerous factors play a part and act and interact on each other. The introduction of simplifying assumptions is quite necessary in order to bring out the importance of really significant factors having a bearing on the problem under investigation.

    Ac­cording to Prof. Boulding, economic theory represents just a ‘map’ of real world phenomenon and not a perfect picture of it. To quote him, “Just as we do not expect a map to show every tree, every blade of grass in a landscape, so we should not expect economic analysis to take into account every detail and quirk of real economic behaviour.

    It, therefore, follows that each and every assumption made by a theory may not be realistic. The crucial factor in building up a valid theory is whether its predictions are corroborated by the facts in the world. A correct scientific theory or generalisation must be expressed in the form of a hypothesis that is conceivably refutable.

    As mentioned above, Professor Friedman in his now well-known article, “The Methodology of Positive Economics” has expressed the view that undue importance should not be given to the ‘realism’ of assumptions. What matters most from the viewpoint of scientific theory, according to him, is whether it enables us to predict things accurately.

    (c) Deducing Hypotheses through Logical Deduction:
    The next step in deriving generalisations through deductive logic is deducing hypotheses from the assumptions or premises taken. A hypothesis describes relationship between factors affecting a phenomenon; it establishes the cause and effect relationship between the variables having a bearing on the phenomenon.

    Then, through logical process, hypothesis is deduced from the assumptions made. This logical reasoning may be carried out verbally or it may be conducted in symbolic terms using the language of what is known as symbolic logic.

    The geometric or graphic technique is also usually employed to deduce the hypotheses about the relationship between factors. Besides, the process of logical deduction may be done with the help of more formal mathematics.

    These days in almost all branches of modern economics, mathematics as tool of analysis for deriving economic theories and generalisations is being increasingly used. The use of mathematics in economic analysis proves extremely useful where geometrical methods make the analysis more complicated to comprehend. Besides, the use of mathematical method makes the derivation of economic hypotheses more rigorous and exact.

    It is worthwhile to note that in deriving analytically sound hypotheses, one should guard against committing logical fallacy in the process of logical deduction. For instance, it is inappropriate to conclude that A must be the cause of B, if A happens to precede B.

    Further, it is logically fallacious to argue that since there exists a high degree of correlation between the two factors, say between the supply of money and the general price level, the former must be the cause of the latter, unless the causation must be logically developed.

    (d) Testing or Verification of Hypotheses:

    Hypotheses obtained above have to be verified before they are established as generalisations or principles of economics. For the verification of hypotheses, economists cannot make controlled experiments, because they have to discover unifor­mities in behaviour patterns of man.

    We cannot make experiments with man under controlled con­ditions, such as in laboratories as physical scientists make experiments with inanimate objects of nature and biologists make these with animals and plants. Therefore, economists have to rely on uncontrolled experience and observations.

    The information regarding uncontrolled experience about the behaviour patterns concerning variables about man and the economy are quite amply available. The reliance by economists on uncontrolled experiences, however, does increase the number of observations required to verify the hypotheses or to establish the generalisations.

    Besides, the need to rely on uncontrolled experiences complicates the analysis and requires that facts must be carefully interpreted to discover successfully the significant relationship between relevant economic variables. Prof. Baur rightly remarks, “The need to rely on uncontrolled experiences does, however, increase the number of observations required, and also complicates their successful analysis and interpretation, before we can discern successfully the significant uniformities and ascertain their limits.”

    It may, however, be pointed out that in spite of the complexities and difficulties involved in verifying economic hypotheses through successful analysis and proper interpretation of uncontrolled experiences and observations, several useful and significant generalisations have been established in economics.

    In the field of microeconomics, the well-established generalisations relate to the in­verse relationship between price and quantity demanded, the direct relation between price and quan­tity supplied, the tendency of the price of the product to be equal to the marginal cost under condi­tions of perfect competition, and the tendency for the wages to be equal to the value of marginal product under conditions of perfect competition and several others.

    In the field of macro-econom­ics, established generalisations relate to the determination of the level of national income by aggre­gate demand and aggregate supply in a capitalist economy, the multiple increase in income and employment as a result of a given initial increase in investment depending upon the size of marginal propensity to consume, the dependence of the amount of investment on the marginal efficiency of capital and the rate of interest and several others.

    It is worth noting that the absence of controlled experiments in economics affects the exactness of economic laws and generalisations.’ This means that the generalisations in economics are not as exact as those of physical sciences and they are therefore not universally applicable under all cir­cumstances. Because of the absence of controlled experiments economic generalisations lack in firmness, they are not easily accepted by all and even generalisations that are refuted by empirical evidence are not abandoned for good by all.

    Prof. Baur rightly points out, the absence of the vivid and dramatic evidence provided by the controlled experiments adds greatly to the difficulty of se­curing acceptance for generalisations which are amply justified by the analysis of the available evidence.” Likewise, absence of controlled experiments, according to Friedman, renders the weed­ing out of unsuccessful hypotheses slow and difficult. They are seldom downed for good and are always cropping up again.

    In regard to flaming and testing of economic generalisations, two related distinctions must be borne in mind. First, functional relationship between economic variables and a historically se­quence of events must be distinguished.

    For instance, the law of demand stating inverse relationship between price and quantity demanded does not become invalid in view of the fact that both prices and quantities sold of many commodities increase during boom periods. This is because certain other forces such as a rise in aggregate investment demand operates which causes increase in both the price and quantity sold during a boom period.

    Second, prediction of a generalisation to show its validity must be carefully differentiated from the forecasting of future events; actual events may not exactly come about as predicted by a generalisation and yet that generalisation may be correct. This is because, as mentioned above, the actual course of events is governed by several other factors assumed by a generalisation which remains constant under the qualification “other things remaining the same”.

    Thus, “even if the prediction that producers of a particular crop respond to a higher price by producing more is correct, this prediction does not enable us to forecast accurately next year’s output (still less the harvest in the more distant future) which in the event will be affected by many factors besides changes in price.”

    In the absence of controlled experiments, for the verification of their theories economists have to rely on the direct observations of events in the real world. By direct observations we mean “gathering of information personally or reliance on comparatively unprocessed material such as files of business firms and government departments, locally published reports, proceedings of representative assemblies, newspapers, advertisements, market reports, auction notices and the like.”

    In order to prove the validity of hypotheses and therefore to establish laws or generalisations, importance of direct observations cannot be underrated. Thus Prof. Baur correctly assets, “The depth and significance of economic generalisations depend on the quality of the underlying observations and analysis.”

    Testing of Economic Hypotheses through Statistical Methods:

    In recent years a very useful method to test economic hypothesis has been developed. This is the statistical method or what is now popularly called econometric method. The statistical or econometric method to verify and establish the theoretical generalisations occupies an important place because of the limited applicability of controlled experimentation in economics.

    The various statistical methods such as regression analysis have been developed to empirically test the economic hypotheses on the basis of collected economic data. The merit of econometrics is that the degree of functional relationship between relevant economic variables in precise quantitative terms is obtained by it and also the level of significance of the results can also be estimated.
    Recently, econometric method has been used to establish the precise relationships between money supply and the price level, quantity of money and the national income, consumption and income, capital accumulation and rate of economic growth and so forth.

    It may, however, be pointed out that statistical analysis or econometrics alone cannot be used to derive and establish economic principles and theories. Economic hypotheses or theories must be developed logically before we can meaningfully use statistical analysis to test and verify them.

    Indeed, a theory or hypothesis is needed beforehand for selecting the relevant facts and data regarding relevant variables which can be subjected to empirical testing through the methods of econometrics Prof. Myrdal is quite right, when he says, “theory, therefore, must always be a prior to the empirical observation of facts.

    Facts come to mean something only as ascertained and organised in the frame of a theory. Indeed, facts as part of scientific knowledge have no existence outside such a frame Questions must be asked before answers can be obtained and, in order to make sense, the questions must be part of a logical coordinated attempt to understand social reality as a whole. A non- theoretical approach is, in strict logic, unthinkable.” Principal steps followed in formulation of economic theories and generalisations through de­ductive method can be summarised as given below.

    Various Steps in Deductive Method

    Various Steps in Deductive Method

    Merits and Demerits of Deductive Method:

    The deductive approach to establish economic generalisations was extensively used by Classi­cal and Neo-Classical economists such as Ricardo, Malthus, Senior, J. S. Mill, Marx, Marshall and Pigou. It still remains popular with modem economists as it has several merits. First, useful math­ematical techniques can be employed to derive laws and theories of economics.

    With the aid of rigorous mathematical logic, economic theories can be developed through the process of deduction which can successfully explain economic phenomena. Secondly, through deductive logic useful economic theories can be derived without the tenuous and detailed collection and analysis of data which are required under the inductive method.

    Thus, as compared to inductive method, deduction is less time-consuming and less expensive. Thirdly, in view of the limited scope for controlled experimentation in economics, the method of deduction is extremely useful method of constructing economic theories. This is because several forces act simultaneously on an economic phenomenon and it is not possible to eliminate some of these by means of a controlled experiment.

    This indicates the crucial importance of deductive logic for building up economic principles or theories. Fourthly, the use of sophisticated mathematical methods in the deductive approach enables the economists to introduce accuracy and exactness in economic principles and theories.

    In spite of the above-mentioned merits, shortcomings of the deductive approach should not be overlooked. The use of deductive method in deriving economic generalisations requires the use of a high-level competence in logic and theoretical abstraction.

    A good deal of care and objectivity is needed to avoid bad logic or faulty economic reasoning. Prof. Blaug rightly opines, “It is perfectly true that economists have often deceived themselves and their readers by engaging in what Leontief once called “implicit theorising” presenting tautologies in the guise of substantive contributions to economic knowledge.”

    Besides, most economists have preconceived notions or biases on several economic issues. If sound and valid economic generalisations are to be established, economists must dissociate themselves from normative preconceptions and biases in their logical process of deducing economic generalisations.

    Further, a great demerit of deductive approach is that with it highly sophisticated theoretical models based on highly unrealistic assumptions may be developed which do not have any operational significance. Indeed, such highly irrelevant analytical models with little empirical content and incapable of being used for policy formulation have in fact been developed by economists. Such models are no more than mere “intellectual toys”. If economics is to serve as an instrument of social betterment, building of such theoretical models having no opera­tional use should be avoided.

    Lastly, in the derivation of economic hypotheses and conclusions through deductive logic, as­sumptions play a crucial role. If the assumptions made are such that when on removing them, economic hypothesis based on them is refuted, then making of these assumptions is not valid.

    Thus, one who uses deductive approach should always keep in mind to what extent the validity of generalisations derived depends on the assumptions made. For instance, the Keynesian macroeconomic analysis is based upon the assumption of a depression-ridden capitalist economy with a lot of excess productive capacity.

    Therefore, a positive harm has been done in applying the Keynesian theories in the context of developing countries such as ours where the assumptions made by Keynes do not hold good. Hence, mere “deductive arm-chair analysis” should be avoided, if the scientific character of economics is to be maintained.

    2. Inductive Method:
    The inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected.

    But, it is worth mentioning that the number of observations has to be large if it can yield a valid economic generalisation. One should not generalise on the basis of a very few observations. There are three ways which can be used for deriving economic prin­ciples and theories.

    They are:

    (a) Experimentation,

    (b) observations,

    (c) statistical or econometric method.

    As has been mentioned above, the experimentation, that is, the use of contrived experi­ments is of limited applicability in economics. First, unlike natural sciences which are concerned with analysing the behaviour of either inanimate objects or obedient animals such as rats and rabbits under the influence of chloroform, economics deals with the behaviour of man who is quite fickle, wayward and unmanageable.

    Besides, man cannot tolerate the idea of being experimented upon, either individually or collectively. Secondly, an economic phenomenon is the result of multiplicity of factors and causes acting and interacting upon each other.

    Therefore, economic phenomenon does not repeat itself in the same uniform pattern. Numerous factors acting on an economic phe­nomenon ‘disturb’ it and make its exact repetition unlikely. Thus, as compared with the natural phenomena, economic phenomena are of less uniform pattern, less repetitive and more variable.

    Thirdly, economists study the economic phenomena in which pressure groups such as employ­ers’ associations, trade unions, farming lobby, political parties with their different ideologies play a crucial part and their activities render it difficult to make controlled experiments in the economic world. However, in spite of these difficulties, experimental method can be used in some fields.

    For instance, experiments have been conducted to find out which law of production is valid, that is, whether law of diminishing returns, law of constant returns or law of increasing returns operates in the real world. Besides, public undertakings or big industrial firms often try to assess the effect of the changes in the prices of their products on the demand for it and thus find out the demand elastic­ity of their products.

    Various Steps in Inductive Method:
    Various steps are gone through in developing economic theories through inductive method. The first step, as in the deductive approach, is to identify the problem. The second step is defining technical terms and variables related to the problem.

    It is the next step which is peculiar to the inductive method, namely, the collection of data about the variables related to the problem and doing some preliminary thinking about the possible functional relationships between the relevant variables.

    The next important step in the construction of economic theories in this method is the processing of data collected and finding out what relations between the variables actually hold good. From this, a theory is developed which can be further refined and tested through statistical methods.

    Once the theory has been developed one can make predictions on its basis, as is done in the deductive approach. If predictions of theory are in agreement with the facts and actual behaviour of the economy, then a new reliable theory has been developed. If a new theory explains “how things work” better than the existing ones, it replaces them.

    However, if predictions are in conflict with actual facts and behaviour of the economy, either the theory is discarded or fresh efforts are made to modify and refine it by collecting more data and processing them. The various steps in the construction and development of economic theories through inductive method are illustrated in Figure 2.

    Various Steps in Inductive Method:

    Various Steps in Inductive Method:

    Evaluation of Inductive Method:
    As has been explained above, observations of facts through collection of detailed data and the use of statistical methods to arrive at economic generalisations establishing relationship between facts are being increasingly made.

    Some of the recent researches in the field of macroeconomics, such as the nature of consumption function describing the relation between income and consump­tion, the principle of acceleration describing the factors which determine investment in the economy have been obtained through the use of mainly inductive method.

    However, it needs to be emphasised again that the use of induction or empirical method is not of much value if it is not supported by the economic hypothesis or theory developed by deductive logic. The inductive method can at best be used to empirically test the theory or hypothesis as to whether it is consistent with or refuted by facts.

    The inductive method has another limitation in that there is a great risk of conclusions being drawn from insufficient data. To obtain generalisations through inductive method, one should take care that sufficient number of observations or data has been taken into account.

    Besides, the collection of data itself is also not an easy task. And a researcher who wants to employ the inductive method to arrive at generalisations must have good knowledge of statistical methods, that is, he must know the art of collecting, processing and inter­preting data. It is obvious that as compared with the deductive method, the inductive method is time-consuming and expensive.

    Conclusion: Integration of Two Methods:
    Now, the controversy which existed among the earlier economists as to whether deductive or inductive approach is more appropriate in developing economic theories and principles has been resolved. The modem viewpoint in this regard is that both are needed for the proper development of scientific economic theories. Indeed, the two are complementary rather than competitive.

    The modern economists first derive economic hypotheses through the process of logical deduction and then empirically test them through statistical or econometric methods. Marshall rightly pointed out, “induction and deduction are both needed for scientific thought as the right and left foot are both needed for walking.”

    Empirical studies made through statistical or inductive method without a theoretical hypothesis to serve as a guide for the selection of data are quite useless. The derivation of economic generalisations through the approach of deductive logic without empirically testing them through inductive method is also not quite proper.

    Empirical studies made in inductive ap­proach also bring to light significant economic facts or phenomena which require analytical expla­nation through deductive logic. For instance. Farm Management Studies in India in the mid- fifties led to the discovery of a fact that output per acre on the small-sized farms is higher than that on large farms.

    This led to the various theoretical explanations of the phenomenon observed in the empirical studies. On the other hand, a theory or hypothesis is first developed through deductive logic from some assumptions and then predictions based on the hypothesis are tested through inductive or statistical method. If the predictions are found to be constant with facts, the hypothesis or theory stands proved and if the predictions of the theory are found to be inconsistent with facts, it stands rejected.

    Reply
  501. Avatar Chukwuemeka Precious says:
    4 years ago

    Chukwuemeka Precious Messoma
    2020/242580
    preciousmessoma@gmail.com
    Economic Analysis involves the formulation of laws and generalisation through two methods
    Deductive Method
    Inductive Method
    1) Deductive Method:- it starts from unchallenged elementary or rudimentary assumptions/facts and then arrive at a conclusion (build a hypothesis or theory) using logical analysis or one’s analytical abilities.in this reasoning it goes from general to specific.its stages are
    – observation of a task
    – making the hypothesis
    – testing the hypothesis using more observations
    This reasoning gives a hypothesis which when verified,we get a general economic principle or law.
    2)Inductive Method:-This type of reasoning flows from facts to theory. First we collect information and facts and then move towards providing evidence using economic theory and facts.this method formulate principles using the sub methods -observation,experimentation, statistical methods.Data is collected about a particular economic theory and then conclusions are drawn.the stages in this method are
    -Observation
    -Formulation of hypothesis
    -Generalising principles
    -Verifying against actual facts .

    Reply
  502. Avatar Udemezue Goodluck Uchechukwu says:
    4 years ago

    Name: Udemezue Goodluck Uchechukwu
    Reg no: 21439013IF
    Department: Public administration and local government
    Faculty: social science

    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    1.Making the hypothesis
    2.Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    1. It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    2. This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    Deductive And Inductive Methods

    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.

    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    1.Formulation of a hypothesis
    2.Generalizing principles
    3.Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
    • Avatar Ogbajie Emmanuel Chibuike says:
      4 years ago

      Ogbajie Emmanuel Chibuike
      20797342AF
      Public Administration
      …
      The method used for Economic analysis are
      1. Deductive method
      2. Inductive method
      Deductive method : it is aimed at developing an existing theory it is also known as the method of the assumption may not correspond to actual fact.
      Inductive method: it is done by two forms, experimentation and statistical form.

      Reply
  503. Avatar Iyambo Paschal Chekwubechukwu. Reg no.:20680596FF .Dept. Philosophy. Faculty of Social sciences. Level:100l says:
    4 years ago

    The basic methods of analysis used by economists are:
    1…DEDUCTIVE METHOD.
    2…INDUCTIVE METHOD.

    DEDUCTIVE METHOD
    The deductive method is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalization and theories.
    THE PRINCIPAL STEPS IN THE PROCESS OF DERIVING ECONOMIC GENERALIZATION THROUGH DEDUCTIV METHOD.
    A) Perception of the problems to be enquired into.
    B) Defining precisely the technical terms and and making appreciate assumptions, often called postulates or premises.
    C) Deducing hypothesis, that is; deriving conclusion from the premises through the process of logical reasoning.
    D) Testing or verification of hypothesis.

    INDUCTIVE METHOD
    The inductive method which is also called empirical method derives economic generalization on the basis of experience and observation. In this method, detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalization which follow from the observations collected.
    THERE ARE THREE WAYS WHICH CAN BE USED FOR DERIVING ECONOMIC PRINCIPLES AND THEORIES.
    They are:
    A) Experiments.
    B) Observations.
    C) Statistical or econometric method.

    Reply
  504. Avatar ODEZULU JULIET SOMTO. 2019/247702. PURE AND INDUSTRIAL CHEMISTRY says:
    4 years ago

    Methods of Economic Analysis Used by Economist

    Economic Analysis

    Any economic analysis involves the formulation of laws and generalizations through two methods:
    *DEDUCTIVE
    *INDUCTIVE

    Methods of Economic Analysis

    *DEDUCTIVE METHOD

    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    *Observation of a task/ issue
    *Making the hypothesis
    *Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    Disadvantages of Deductive Method

    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    INDUCTIVE METHOD

    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    a)Observation
    b)Formulation of a hypothesis
    c)Generalizing principles
    d)Verifying against actual facts.

    Advantages of Inductive Method
    *Since it is based on facts it is more realistic and reliable.
    *Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    *Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of Inductive Method
    *If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    *It is a time-consuming process and thus expensive as well.
    *The collection of all the data is not an easy job and varies from person to person.

    Reply
  505. Avatar Ikechukwu Irene Uchechi. Reg no: 2019/248482. Dept: Pure and Industrial Chemistry says:
    4 years ago

    There are two types of economic analysis according to economists, namely:
    1. Deductive method
    2. Inductive method
    Deductive method:
    Otherwise known as priori reasoning where we start from elementary facts before concluding to attain a theory or hypothesis using logical analysis or our own analytical abilities. In this kind of method, we go from general to specific. The stages in deductive method are:
    1.Observation of a task/ issue
    2. Making the hypothesis
    3.Testing the hypothesis using more observations, etc.
    This method gives us a hypothesis which when verified, gives general economic principles or laws.
    Advantages of Deductive Method
    1.It is a simple method, that doesn’t involves the use of only simple deductive logic.
    2. It focuses on economic reasoning which is of paramount importance hence it’s importance to economists.

    Disadvantages of Deductive Method
    1. Deductive method is gotten from assumptions
    and if this assumptions happen to be flawed.
    the entire process becomes faulty and so will.
    the conclusion.
    Inductive method
    This method formulates principles using the sub methods, observations,experimentations, statistical methods. As it flows from facts to theory. Data is collected about a particular economic theory before drawing conclusions.
    The stages include:
    1. Observation
    2. Hypothesis formulation
    3. Generalizing principles
    4. Verifying against actual facts

    Advantages of inductive method
    1. More reliable and realistic
    2. It is more scientific hence it’s universal acceptance rather than just depending on your own logic and reasoning
    3. Since the economic environment is dynamic relying on a more scientific method always help reach logical conclusions

    Disadvantages of inductive method
    1. It is time consuming and very expensive to run
    2. The data collection varies from person to person hence it’s difficulty
    3. Insufficient and faulty data may lead to faulty conclusions leading to an unreliable hypothesis.

    Reply
  506. Avatar Orji Chinecherem jacinta says:
    4 years ago

    Name : ORJI Chinecherem jacinta.
    Reg number:20643568EA
    Email orjichinecherem13@gmail.com
    METHOD OF ECONOMIC ANALYSIS

    1) Deductive method
    The deductive method is also called abstract analytical and a prior method and represent an abstract approach to the derivation of economic generalisation and theory.
    Steps in the process of deriving Economic generalisations through deductive logic .
    a) perception of the problem to be enquired into .
    b) defining precisely the technical terms and making appropriate assumption often called a postulates or premises .
    c) deducing hypotheses ,that is deriving conclusion from the premises through the process of logical reasoning .
    d) testing of hypothesis deduced .

    2) inductive method
    The inductive method which is also called emphrical method derives Economic generalisation on the basis of experience and observation.in this method detailed data are collected with regard to a certain Economic phenomenon, and effort is then made to arrive at a certain generalisation which follow from the observation collected .
    Ways which can be used for deriving Economic principles and theories .
    a) Experimentation
    b) observation
    c)statistical or Economeric method .

    Reply
  507. Avatar Amara marvelous Ezeilo says:
    4 years ago

    Name:Amara marvelous Ezeilo
    Reg:21981573BA
    Email, marvellousamara88@gmail.com
    METHOD OF ECONOMIC ANALYSIS

    1) deductive method
    The deductive method is also known as abstract method or analytical method ,this is based on a priori reasoning and conclusion are drawn from certain fundamental assumptions.

    2) inductive method
    Moves from a specific observation to generalisation.it was Francis bacon who advocated inductive method in specific enquiry.

    The important elements of Darwin’s deductive , inductive method .
    a) identification of a problem.
    b)formulation of hypothesis.
    c)collection , organization and analysis of data.
    d) formulation of conclusion.
    e) verification, rejection or modification of the hypothesis after testing it.

    Reply
  508. Avatar Obodo Ejike Joel says:
    4 years ago

    NAME: OBODO EJIKE JOEL
    REG NUMBER: 2020/242620
    DEPARTMENT: ECONOMICS
    EMAIL: obodoejike@gmail.com

    1. What are the basic methods of analysis used by Economists? Briefly and convincingly discuss each of them.
    Answer: The basic methods of analysis used by Economists are:
    (1) Deductive Method.
    (2) Inductive Method.

    1. Deductive/abstract/analytical method:Deductive method of Economic Analysis is also known as an hypothetical method for some of the assumptions may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions.
    Steps taken in deriving economic generalisations through deductive logic are:
    (i) Perception of the problem to be enquired.
    (ii) Defining precisely the technical terms and making appropriate assumptions, often called postulates or premises.
    (iii) Deducing hypotheses, that is, deriving conclu­sions from the premises through the process of logical reasoning; and
    (iv) Testing of hypothesis deduced.

    (i) Perception of the Problem:
    In any scientific enquiry, the analyst or theorist must have a clear idea of the problem to be enquired into. He must know the significant variables regarding whose behaviour and interrelationship he wants to derive generalisations.
    (ii) Definition of Technical Terms and Making of Assumptions:
    That is to define precisely and unambiguously the various technical terms to be used in the analysis as well as to state clearly the assumptions he makes to derive generalisations.
    (iii) Deducing Hypotheses through Logical Deduction:
    The next step in deriving generalisations through deductive logic is deducing hypotheses from the assumptions or premises taken.
    (iv) Testing or Verification of Hypotheses:
    Hypotheses obtained above have to be verified before they are established as generalisations or principles of economics. For the verification of hypotheses, economists cannot make controlled experiments, because they have to discover unifor­mities in behaviour patterns of man.

    2. Inductive/empirical Method: it derives economic generalisations on the basis of experience and observations. In this method detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at certain generalisations which follow from the observations collected. There are three ways which can be used for deriving economic prin­ciples and theories.

    (i) Experimentation
    (ii) observations,
    (iii) statistical or econometric method

    Steps involved in inductive method: The steps involved are the same with the deductive method;
    The first step, as in the deductive approach, is to identify the problem. The second step is defining technical terms and variables related to the problem.
    It is the next step which is peculiar to the inductive method, namely, the collection of data about the variables related to the problem and doing some preliminary thinking about the possible functional relationships between the relevant variables.
    The next important step in the construction of economic theories in this method is the processing of data collected and finding out what relations between the variables actually hold good. From this, a theory is developed which can be further refined and tested through statistical methods.

    Integration of Two Methods:
    Now, the controversy which existed among the earlier economists as to whether deductive or inductive approach is more appropriate in developing economic theories and principles has been resolved. The modem viewpoint in this regard is that both are needed for the proper development of scientific economic theories. Indeed, the two are complementary rather than competitive.

    Reply
  509. Avatar Okoye ogechim yegra-owo says:
    4 years ago

    Name:ogechm okoye yegra-owo
    Dept: combined social science (Economics and political science)
    Reg no:22078422HF

    They are two methods of economic analysis namely inductive and deductive method DEDUCTIVE METHOD:deductive method we proceed from the general to the particular.In deductive method economists work with generalization and theory.its also known as hypothetical method for some assumptions may not correspond to actual facts.these assumptions are called postulates

    INDUCTIVE METHOD: inductive method is quite similar to deductive method but it uses econometric packages, economists proceed from a practical angle to problems of science to reduce the gap between theory and practice.in inductive method facts are collected first ,arranged and conclusion are drawn

    Reply
  510. Avatar EZEH PRECIOUS FAVOUR says:
    4 years ago

    NAME: EZEH PRECIOUS FAVOUR
    REG NO: 21652770FA
    EMAIL ADDRESS: PRECIOUSEZEH2019@GMAIL.COM

    There are two methods of Economics Analysis which are:
    1. Deductive method
    2. Inductive method

    1. DEDUCTIVE METHOD: This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.
    ADVANTAGES OF DEDUCTIVE METHOD
    i. It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    ii. This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    DISADVANTAGED OF DEDUCTIVE METHOD
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    2. INDUCTIVE METHOD:This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts
    ADVANTAGES OF INDUCTIVE METHOD
    a. Since it is based on facts it is more realistic and reliable.
    b.Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    c.Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    DISADVANTAGES OF INDUCTIVE METHOD
    a. If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    b. It is a time-consuming process and thus expensive as well.

    Reply
  511. Avatar Igbonaju chimdiebube Ephriam. 21373029ha says:
    4 years ago

    There are two basic methods of economic analysis; 1.deductive method: this method of analysis is applied by identifying the problem, bring up innovative ideas on the problem, then test the hypothesis. 2.inductive method: this method of analysis is applied by; identifying the problem,gather data on the problem, carry out experiments, then finalise the hypothesis.

    Reply
  512. Avatar Nneji Favour chinenye says:
    4 years ago

    Didictive method is also called abstract analytical and a priori method And represents and abstract approach to the derivation of economic generalisation and theories

    Inductive method which is also called empirical method derives economic generalisations on the basis of experience and observations. In the method detailed data are collected with regard to a certain economic phenomenon are the efforts is the made to arrive at a certain generalisation which follows from the observations collected.

    Reply
  513. Avatar Umezeh Somtochukwu Lucy says:
    4 years ago

    Name: Umezeh Somtochukwu Lucy
    Matric reg no : 2020/242622
    jamb email : somtochukwulucy@gmail.com

    Basic method of economic analysis involves

    1. Deductive method can also be abstract method. The abstract method is done by deriving conclusion from facts taken and analyzed to draw conclusion from.
    Stages
    a. The analyst must have a valid and clear idea of the problem.
    b. The analyst must clearly note the technical terms.
    c. In deriving generalization,the analyst must derive hypothesis from assumptions made.
    d. Verification if hypothesis must be carried out.
    Deductive method is less time consuming and helps in economic theories.

    2. Inductive method is also called empirical method,it involves the process of reasoning from particular facts to principles. This method deals with data collected on a certain phenomenon. The stages of the method are both the same with that of deductive method.

    In conclusion, inductive and deductive methods are both used for economic analysis,we can apply any of them or both if such situation arises.

    Reply
  514. Avatar Igboanugo jacinta ugochukwu says:
    4 years ago

    Name: Igboanugo jacinta ugochukwu
    Reg no:20158488JA
    Email: jacintaugochkwu@outlook.com
    Department:Education and Economic
    Any Economic analysis involve the formation of law and generalization through two method
    1Deductive method
    2.Inductive method

    1.Deductive method this is also called a prior reasoning.we start from unchallenged elementary or rudimentary assumption/facts and then arrive at conclusion (build a hypothesis or theory) using logical analysis or our own analytical abilities .In this kind of reasoning we go from general to specific. The stage in deductive reasoning/analysing:
    1.identify the problem/observation of the task issue.
    2.make assumptions.
    3.making the hypothesis.
    3.testing the hypothesis using more observation.

    ADVANTAGE OF DEDUCTIVE METHOD
    1.it is a simple method, doesn’t involve the use of complex software analysis ETC only simple deductive logic is required.
    2.This method is important for economist as it focus upon economic reasoning which is of Paramount importance

    DISADVANTAGE OF DEDUCTIVE METHOD
    1.In this method of reasoning we start from assumption,thus,if the assumption happen to be logical flawed, the whole processes becomes faculty and would give wrong conclusion.Thus, the logical fallacy is a disadvantage of this method.

    INDUCTIVE METHOD
    This type of reasoning flows from facts totheory.first, we collect using economic theory and facts.This method formulate principles using the sub-method like observation, experimentation, statistical method.
    Data collected about a particular economic theory and then conclusion are drawn
    THE STAGES IN INDUCTIVE METHOD
    1.obervation.
    2.formulation of a hypothesis.
    3.Generalizing principles.
    4.Verify against actual facts.
    ADVANTAGES OF INDUCTIVE
    1.since It is based on facts it is more realistic and reliable.
    2.using statistical method and experimentation makes the process more scientific,thus,more acceptable universally rather than just depending on your own reasoning and logic.
    3.since the economic environment is dynamic and always changing relying upon a more scientific.
    DISADVANTAGES OF INDUCTIVE METHOD
    1.If the data using is insufficient and faulty,it would lead to faulty conclusion, making the hypothesis less reliable
    2.It is time consuming process and thus, expensive as well
    3.The collection of all the data is not an easy job and varies from person to person,as how they collect data

    Reply
  515. Avatar Enyinnaya chinedum Gabriel says:
    4 years ago

    1. Inductive Method

    In this type of reasoning we first of all collect information and facts and then try providing evidence using facts and economic theory also. In this type of method, we formulate principles using Observations, Experimentations
    Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation

    Formulation of a hypothesis

    Generalizing principles

    Verifying against actual facts.

    2. Deductive Method

    This method is also called priori reasoning. It starts from assumptions and arrive at conclusions using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue

    Making the hypothesis

    Testing the hypothesis using more observations, etc.

    Enyinnaya chinedum Gabriel
    Public administration and local government
    20865531FF

    Reply
  516. Avatar Adeleye Samuel tolani, reg no:2173951EA (philosophy department) says:
    4 years ago

    The two major methods of analysis used by economist are Deductive methods & inductive methods
    DEDUCTIVE METHODS also called analytical or abstract method approach to the derivation of economic generalisation and theories with the major process of deriving economic generalisation through
    1, perception of the problem to be inquired into, for analyst must have a clear idea of the problem to be enquired into.
    2,The clear definition of the technical terms to be used in the analysis.
    3, Deducing hypothesis, that is extraction of conclusions from the premises through local reasoning.
    4, The testing of hypothesis through statistical method commonly called econometric method, which is used to verify and build theoretical generalisations.
    INDUCTIVE METHOD also called empirical method extract it’s economic generalisation on the basis of experience and major observations. Through the use of :
    1, Experimentations which is the use of contrived experiments of limited applicability in economics as economics tends to deal with the behavioural of man who is fickle and unimaginable
    2,Observations from the experiment of limited applicability extracted
    3,Through the use of statistical method also known as econometic methods.

    Reply
    • Avatar NAME: JIDEOFOR VICTORIA EBERE.. DEPT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT.. MATRIC NUMBER: 2020/243202 says:
      4 years ago

      ECONOMIC ANALYSIS:
      THE BASIC METHODS OF ANALYSIS USED MY ECONOMISTS ARE:
      1: THE DEDUCTIVE METHOD
      2: THE INDUCTIVE METHOD..
      * DEDUCTIVE METHOD: This is also known as hypothetical, analytical, abstract or priori method. Deductive method consists in deriving new conclusions from general principles to particular facts or from truth established by other methods.
      It also involves the process of reasoning from certain laws, assumed to be true.
      Bacon described Deduction as a descending process in which we process from a general principal to it’s consequences..
      *STEEPS IN DEDUCTIVE METHOD:
      * Selecting the problem.
      * The formulation of assumptions on the basis of which the problem is to be explored.
      * The formulation of hypothesis through the process of logical reasoning whereby inferences are drawn.
      * Testing of hypothesis deduced.

      *INDUCTIVE METHOD: This is also known as empirical method. Inductive method involves drawing conclusion from a set of specific observations. It is also the process of reasoning from particular facts to general principles.
      Inductive method is also a process in which facts are collected, arranged and conclusions are drawn. The inductive method is realistic in the sense that it is based on facts and it explains them as they actually are. It also makes use of the statistical method.
      STEPS IN INDUCTIVE METHOD:
      * Identifying the problem.
      * Defining technical terms and variables related to the problem.
      * Collection of data about the variables related to the problem.
      * Processing of data collected.

      Reply
  517. Avatar NNACHO MILLICENT SOMTOOCHUKWU (2019/241770) says:
    4 years ago

    QUESTION : WHAT ARE THE BASIC METHODS OF ANALYSIS USED BY THE ECONOMISTS? BRIEFLY AND CONVINCELY DISCUSS BOTH OF THEM.

    Economic analysis can be divided into two categories. These are: Deductive Method, and Inductive Method.

    1. The Deductive Method

    The analytical abstract a priori method is also known as the deductive method. We begin with some formal facts and assumptions. Then we arrive at specific conclusions based on logical thinking. We begin with undeniable fundamental truths and then add assumptions to form a hypothesis. For example, it is considered that businesses want to make the most money possible. As a result, business people buy materials on the cheapest market and sell them on the most expensive market.

    We move from the general to the specific in the deductive technique of economic analysis.

    This method is also known as a hypothetical method since some of the assumptions may not correlate to actual facts, but are close enough to be utilized as a starting point for reasoning and drawing conclusions. In economics, we begin with very basic premises and gradually build up to more complicated theories.

    A full deductive procedure consists of three phases, namely,

    observation; deductive reasoning, and testing with additional observations.

    We get hypotheses or generalizations from deductive reasoning. We have valid economic laws if the assumptions are tested and validated in relation to facts.

    2. The Inductive Method

    In this method, economists approach scientific questions from a practical standpoint in order to bridge the gap between theory and practice. Experimentation and statistical induction are two methods for induction. The facts are gathered first, then organized, and then conclusions are drawn. Then, using actual facts, these general findings are double-checked.

    The statistical form of inductions is commonly associated with the inductive approach. In economic investigations, the statistical methodology has a bigger area than the experimentation method. In addition, statistical induction is required for the formation of economic policy.

    Reply
  518. Avatar BASSEY CHINONSO INYANG (2019/241433) says:
    4 years ago

    BASSEY CHINONSO INYANG (2019/241433)
    DEPARTMENT OF PURE AND INDUSTRIAL CHEMISTRY
    (ECO101)

    QUESTION : WHAT ARE THE BASIC METHODS OF ANALYSIS USED BY THE ECONOMISTS? BRIEFLY AND CONVINCELY DISCUSS BOTH OF THEM.

    ANSWER:

    Basically, there are two methods of Economic Analysis. These are;
    Deductive Method
    Inductive Method

    1. Deductive Method

    Deductive method is known as the analytical abstract a priori method. Here we start with certain formal data and assumptions. Then by logical reasoning we arrive at certain conclusions. We start with undisputed fundamental facts and after adding some assumptions we build up a theory. For instance, it is assumed that businessmen aim at maximum profit. It follows from this that businessmen buy the materials in the cheapest market and sell it in the dearest market.

    In the Deductive method of Economic Analysis we proceed from the general to the particular. This is also known as an hypothetical method for some of the assumptions may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions. In economics we start with very simple premises and work up gradually or more and more complex hypotheses

    A complete form of deductive method consists of three stages,

    A. observation;
    B. deductive reasoning
    C. instance and testing by means of further observations.

    Deductive reasoning provides us with hypotheses or generalizations. If the hypotheses are tested and verified with relevance to facts, we have valid economic laws.

    2. Inductive Method

    In this method, economists proceed from a practical angle to problems of science to reduce the gulf between theory and practice. Induction is done by two forms, viz. experimentation and statistical form. Facts are collected first, arranged and conclusions are drawn. Then these general conclusions are further verified with reference to actual facts

    The inductive method is generally associated with the statistical form of inductions. The statistical approach has a larger field in economic investigations than the method of experimentation. Further, the method of statistical induction is indispensable for the formulation of economic policy

    This method is highly practical and realistic as it describes things as they are. It is helpful in verifying the conclusions of the deductive method

    Reply
  519. Avatar ABONYI BLESSING CHINASA says:
    4 years ago

    ABONYI BLESSING CHINASA
    Reg no 20688916Gf
    Department philosophy
    Any economic analysis involves the formulation of law and generalizations through two methods they are
    1 Deductive Methods
    2. Inductive Methods

    Reply
  520. Avatar Rachael Iroegbu Nwangaji says:
    4 years ago

    Iroegbu Nwangaji Rachael
    21679347HA
    iroegburachael@gmail.com

    BASIC METHODS OF ANALYSIS USED BY ECONOMISTS

    1. DEDUCTIVE METHOD: This method involves making research using fundamental prepositions,and generalising on it,however the truth of this prepositions are assumed . Deductive method is mostly centered on generalisation and making theories. A very good and understandable example of Deductive method is:

    ‘Demand for milk will go up irrespective of changes in price, demand for necessity goods are not affected by changes in price. Therefore,milk is a necessity’. For Deductive reasoning to be reasonable indeed,the hypothesis must be correct. Therefore it is assumed that the above statement is true

    2. INDUCTIVE METHOD OF ANALYSIS: its quite similar to the Deductive method except that certain economic packages(software) are implemented here. Examples of this packages are E-views,STATA and SPSS. Inductive method of analysis involves gathering facts,making inferences from them and testing those inferences by other facts.
    An example of a case where Inductive method of analysis was implemented is:

    Using a small population of people, you can say; ‘all men that I know in this town own tricycles,therefore all men own tricycles’.
    It starts with a set of observations,checking for similar patterns in the observations and then forming a theory about the patterns.

    Reply
  521. Avatar Ugwuanyi Perpetual Amarachi says:
    4 years ago

    REG NO: 21286083IA
    There are two methods of economic analysis. They are:
    1. Deductive method: Is also called Abstract, Analytical or Apriori method. It represents an abstract approach to the derivation of economic generalizations and theories. The following are steps in the process of deriving economic theories through deductive method:
    A. Perception of the problem: The analyst or theorist must have a clear idea of the problem to be enquired into. He must identify the significant variables regarding whose behavior and interrelationship he wants to derive generalizations.
    B. Definition of technical terms and making of assumptions: An analyst has to define the various technical terms to be used in the analysis and state clearly the assumptions he makes. These assumptions are often called postulates or premises. It may be behavioural concerning the behavior of the economic variables or they may be technological relating to the state of the technology and the factor endowments. Important assumptions are made on the basis of observations or introspections. Some assumptions are merely to simplify the analysis and may not be realistic.
    C. Deducing hypotheses through logical deduction: This is the deduction of hypotheses from the assumptions taken. A hypothesis describes the relationship between factors affecting a phenomenon. This deduction may be carried out verbally or in symbolic terms using the language called symbolic logic. Geometric or graphic technique can also be used to deduce postulates. Formal mathematics is also a popularly used method in the process of logical deduction.
    D. Testing and verification of hypotheses: It is very important to verify hypotheses obtained before being established as theories or principles of economics. Verification can be made through experiments and observations.Analysts cannot make controlled experiment because they have to discover the uniformities in the behavioural patterns of man. Therefore they rely on controlled observations. The reliance on uncontrolled observations increases the number of observations needed to verify the hypotheses or to establish the generalization.
    Deductive method has its merits and demerits. Its merits are the use of mathematical techniques which helps derive accurate theories, theories are derived without tenuous and detailed collection and analysis of data, it’s lessd time consuming and less expensive etc. It’s demerits are it requires how gh level of competence in logic and theoritical abstractions, assumptions developedmay not have any operational significance etc
    2. Inductive method: Is also called empirical method. It derived theories on the basis of experience and observations. Detailed data are collected with regards to a particular economic phenomenon and efforts are made ti arrive at certain generalizations. There are three ways to wsys to derive economic principles through an inductive method. They are
    A. Experimentations
    B. Observations
    C. Statical or economic method
    The steps used in developing theories using inductive method are as follows: identify the problem,define the technical terms and variables related to the problem and doing some thinking about possible functional relationships between the variables, processing of data collected and finding out the relations between the variables and then a theory can be developed which can be refined and tested through statistical method. Inductive method is not of much value if it’s not supported by the theory developed by deductive logic. There is also a great risk of conclusions being drawn from insufficient data. Analysts should make sure that sufficient data has been collected which of course is time consuming and tenuous.

    Reply
  522. Avatar Dike Akuoma Promise says:
    4 years ago

    NAME: DIKE AKUOMA PROMISE
    FACULTY: SOCIAL SCIENCES
    DEPARTMENT: ECONOMICS

    MAJOR METHODS OF ANALYSIS IN ECONOMICS:
    DEDUCTIVE METHOD
    INDUCTIVE METHOD

    Deductive Method
    In this method, we go from unchallenged assumptions or thinkings to building conclusions thereby creating what we call “Hypothesis” through economic analysis or our very own analysing of our assumptions. In this process,the hypothesis can either be flawed or verified, and once it is verified it becomes an economic principle or law.

    Inductive Method
    Here,we flow from facts to theory. We start with findings and collection of information,then move towards providing evidence or proofs to back up our information using economic theory and facts. This method usually involves observation, experimentation, etc.

    Reply
  523. Avatar Okorie Lucy mmesoma says:
    4 years ago

    The basic methods of analysis used by economist are:
    1 Inductive reasoning
    2 Deductive reasoning

    – Inductive theory; is a kind of reasoning where we collect facts and information and then move towards providing evidence using economic theory and facts. This method formulates principles using sub-methods observations, experimentation, statistical methods

    – Deductive reasoning;is a reasoning where we start from unchallenged elementary or rudimentary assumption/facts and then arrive at conclusion using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific

    Reply
  524. Avatar Uchegbu Kenneth Uchenna. 2019/241791 says:
    4 years ago

    There are two approaches in economics for economic analysis which are: Deductive and Inductive methods.
    Deductive method also known as abstract or priori method focuses on an abstract approach to the derivation of economic generalizations and theories. It’s approach to economic analysis involves four steps which are: perception of the problem to be enquired into; defining precisely the technical terms and making appropriate assumptions often called postulates; deducing hypothesis from the postulates through the process of logical reasoning; and testing of hypothesis deduced.
    Inductive method also known as empirical method depends on the observations and experience. It is the opposite of the deductive approach to economic analysis. The inductive method uses three approaches to economic analysis which are: Experimentation ( This is not accepted in economics as they believe that unlike animals man cannot tolerate being experimented upon and for economics being a subject that deals with the behaviour of man this does not work); observations; and statistical or econometric method.

    Reply
  525. Avatar OMEKE HILLARY NNAMDI says:
    4 years ago

    Methods of Economic Analysis
    Like any other science, Economics adopts two important methods in its investigations and formulation of laws and principles. The two methods are

    Deductive Methods and
    Inductive Methods.
    Let us discuss the importance of these two methods.

    Methods of Economic Analysis
    Methods of Economic Analysis – Deductive Method and Inductive Method

    Deductive Method of Economic Analysis
    Deductive method is known as the analytical abstract a priori method. Here we start with certain formal data and assumptions. Then by logical reasoning we arrive at certain conclusions. We start with undisputed fundamental facts and after adding some assumptions we build up a theory. For instance, it is assumed that businessmen aim at maximum profit. It follows from this that businessmen buy the materials in the cheapest market and sell it in the dearest market.

    In Deductive method of Economic Analysis we proceed from the general to the particular. This is also known as an hypothetical method for some of the assumptions may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions. In economics we start with very simple premises and work up gradually or more and more complex hypotheses.

    A complete form of deductive method consists of three stages, viz.,

    observation;
    deductive reasoning and
    instance and testing by means of further observations.
    Deductive reasoning provides us with hypotheses or generalizations. If the hypotheses are tested and verified with relevance to facts, we have valid economic laws.

    Advantages of Deductive Method of Economic Analysis
    Deductive method has the following ‘merits’

    1. Deductive method is exceedingly simple. For example, the law that the utility derived by an individual from a commodity goes on diminishing with every successive addition is a self-evident truth from which we may draw many logical conclusions, viz., larger the stock of money, the lower shall be the utility of money; rich persons have lesser marginal utility of money than the poor people; so taxes should not be levied on proportional basis. If taxes are levied proportionately, the sacrifice of the poor will be larger than the rich. This is against the Canon of equity, etc. Thus the principle of progressive taxation is derived from the law of diminishing utility through deductive reasoning.

    2. Deductive method obviates the necessity of experimentation. Economics being a social science, experimentation may not be available as in the case of physics or chemistry. So, the next best alternative to experiment is deductive reasoning. According to Boulding this method of deductive reasoning is the method of intellectual experiment.

    3. The deductive method results in accuracy and exactness in generalization, because of logical reasoning. The method gives a very high standard of precision in abstract economic reasoning.

    Disadvantages of Deductive Method of Economic Analysis
    Deductive method has its drawbacks also:

    1. Deduction is based mainly on assumptions which are perfectly valid. If assumptions are wrong, generalizations made on the basis of wrong assumptions will be imperfect and invalid. All economic laws are based on too many assumptions where there are more scope for committing errors through wrong hypotheses.

    2. In deduction there is too much of abstraction and economists by means of their intellectual exercises produce only “intellectual toys” having little connection with reality.

    3. Deductive generalizations started on wrong premises will be dangerous when such generalization claim universal validity. Then such faulty generalizations are made use of in framing government policies, the results would be nothing but disastrous. For example, J.B.Say, claimed universal validity for his ‘Law of Markets’ in which he maintained that supply creates its own demand and there will not be over-production in the market. But this celebrated ‘Law of Market’ was torn to pieces when critics proved that Say’s Law was wrong and overproduction would be possible.

    Inductive Method of Economic Analysis
    In this method, economists proceed from a practical angle to problems of science to reduce the gulf between theory and practice. Induction is done by two forms, viz. experimentation and statistical form. Facts are collected first, arranged and conclusions are drawn. Then these general conclusions are further verified with reference to actual facts.

    The inductive method is generally associated with the statistical form of inductions. The statistical approach has a larger field in economic investigations than the method of experimentation. Further, the method of statistical induction is indispensable for the formulation of economic policy. Malthus presented his famous theory of population only after studying the facts of population in various countries; He then used statistics to support his theory. Similarly Engel, the German statistician employed inductive method and used statistics to formulate his law of consumption.

    Advantages of Inductive Method of Economic Analysis
    Inductive method has the following merits:

    1. It is highly practical add realistic as it describes things as they are.

    2. It is helpful in verifying the conclusions of the deductive method.

    3. Economic laws under this method are not universal but valid only under certain conditions.

    Disadvantages of Inductive Method of Economic Analysis
    Inductive method has the following limitations:

    1. When the investigators lack a balanced judgement there is the risk of drawing hurried conclusions based on inadequate and irrelevant facts and data.

    2. Collection of facts in the inductive process is a highly complex and complicated job warranting extraordinary understanding to alienate economic from non-economic factors.

    3. Mere induction alone will not deliver goods unless it is supplemented by means of deductive reasoning. Without deduction, the inductive method would result in producing only a mass of unrelated and unconnected facts.

    Deductive or Inductive?
    From the above discussion, we can infer that there is no point in pleading one method against the other. The two methods have to be made use of or blended to achieve the required objective. The two methods, deductive and inductive, are not competitive, but complementary in nature helping the investigator.

    Induction and deduction are both needed for scientific thought, as the right foot and the left foot are both needed for walking.

    Just, like any other matter, the issue, whether deductive method is to be preferred to inductive method or vice versa, became a raging controversy in the last century. The classical school of Britain represented by David Ricardo, Malthus, J.S.Mill, N.Senior, etc., strongly advocated deduction and affirmed their support in deductive methodology. On the contrary the Historical School in Germany represented by Carl Knies, Roscher, Hildebrand, etc., affirmed faith in inductive method. The controversy over methodology went on till Alfred Marshall brought about a compromise.

    NAME: OMEKE HILLARY NNAMDI
    DEPT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT
    REG NUMBER: 20684661GA
    MATRIC NUMBER: 2020/243238
    EMAIL: omekehillarynnamdi@gmail.com

    Reply
  526. Avatar uchechukwu chiamaka blessing says:
    4 years ago

    uchechukwu chiamaka blessing
    20153446DA
    chiamakab130@gmail.com
    matric numb;- 2020/243245
    DISCUSS 2 METHODS OF ECONOMIC ANALYSIS
    Any economic analysis involves the formulating of laws and generalization through 2 methods called the DEDUCTIVE AND INDUCTIVE METHODS.
    DEDUCTIVE METHOD; This is also called of priori reasoning. we start from unchallenged elementary or UDIMENTARY ASSUMPTIONS [ build a hypothesis or theory] using logical analysis or using our own analytical abilities, deductive method also known as the analytical abstract a priori method . here we start at a formal data and assumptions, then by logical reasoning we arrive at a certain conclusions, we start with the undisputed fundamental facts and after adding some assumptions we build up a theory. for instance it’s assumed that a business man buys the materials in cheapest market and sell in the dearst market.
    in this kind of reasoning we go from general to specific.
    THE STAGES IN DEDUCTIVE REASONING ARE;-
    1- observation of a task /issues
    2- making the hypothesis
    3- testing the hypothesis using more observation etc.
    This reasoning gives us ahypothesis and if this hypothesis get verified we get general economic principles and laws. so with this , in the deductive method of economic method analysis we proced to general to the particular is also known as the HYPOTHETICAL METHOD.
    ADVANTAGES OF DEDUCTIVE METHOD
    1- Its a simple method, dose not involve theb use of any complex software analysis etc. only simple logic is required.
    2- The method is important for the economist as it focuses upon economic reasoningwhich is of paramount impotance.
    DISADVANTAGES OF DEDUCTIVE METHOD
    1- IN this method of reasoning we start with aassumptions,thus, if the assumption happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. thus, the logical fallacy is a disadvantage of this method.
    INDUCTIVE METHOD;- This type of reasoning flows from facts to theory.first we collect information and facts then move toward providing evidence using economic theory and facts.
    this method formulates principles using sub-methods-observation,experimentation statistical methods. bData collection about a particular economic theory and then conclusions are drawn.
    THE STAGES ON INDUCTIVE METHOD ARE;-
    1- Observation
    2- Formulating hypothesis
    3- generalizing principles
    4- Verifying against actual facts
    ADVANTAGES OF INDUCTIVE METHOD
    1- Since its based on facts its more realistic and realiable
    2- using statistical methods and experimentation makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    3- Since the economic environment is dynamic and always changing relying upon a more scientific method always helps reach logical conclusions.
    DISADVANTAGES OF INDUCTIVE METHOD
    1- If the data use is insufficent and faulty, it will lead yo faulty conclusion making the hypothesis less realiable.
    2- Its a time consuming process and its expensive as well.
    3- The collection of all data is not aan easy job and varies from person to person[ as to how they collect data

    Reply
  527. Avatar Chigozie Chidera Jennifer says:
    4 years ago

    Name: Chigozie Chidera Jennifer
    Department: Economics
    Reg no: 2020/242579

    Types of Economic analysis

    1.) Deductive method: Here, we work with generalizations and theories. It involves the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of facts. It represents an abstract aproach to the derivation of economic theories.
    In Deductive method of Economic Analysis we proceed from the general to the particular.

    2.) Inductive method: it derives economic generalization on the basis of experience and observations. Here, detailed data is used to approach economic phenomenon and effort is made to arrive at certain generalizations.

    Reply
  528. Avatar Utomi Emmanuelella Onyinyechukwu. 2020/243257. Public administration and local government says:
    4 years ago

    Some of the most important methods of economic analysis are as follows:

    1. Deductive method: The deductive method is also called abstract, analytical and a priori method and represents an abstract approach to the derivation of economic generalisations and theories.
    The principal steps in the process of deriving economic generalisations through deductive logic are;
    a) perception of the problem to be enquired into;
    b) defining precisely the technical terms and making appropriate assumptions.
    c) deducing hypotheses, I.e, deriving conclusions from the process of logical reasoning.
    d) testing of hypothesis deduced.

    2. Inductive method: It is also called empirical method, derives economic generalisations on the basis of experience and observations. In this method, detailed data are collected with regard to a certain economic phenomenon and effort is then made to arrive at a certain generalisation which follows from the observations collected.

    Reply
  529. Avatar Enechukwu Ebube felicitas says:
    4 years ago

    Name: Enechukwu Ebube felicitas
    Reg no:29814432DF
    Department: Economics
    The basic methods of analysis used by economists are::
    Deductive and Inductive reasoning
    Deductive Method:
    Deductive means reasoning or inference from the general to the particular or from the universal to the individual. The deductive method derives new conclusions from the fundamental assumptions or from truth brought about by other methods. It involves the process of reasoning from certain laws or principles which are assumed to be true.
    Mill characterised deductive reasoning as a priority method,while others called it abstract and analytical .
    Deductive involves four steps
    1) Selecting the problem
    2) Formulation of assumption
    3) Formulation of hypothesis
    4)Testing, verifying the hypothesis

    Inductive Method
    Inductive is the process of reasoning from the part to the whole. Bacon defined it as an ascending process in which facts are collected,arranged and then conclusions are drawn.
    The historical or Inductive method expects the economist to be primarily an economic historian who should first collect material draw generalisation and verify the conclusions by applying them to subsequent events ,for this it uses statistical method. Expenditure and the malthusian theory of population was derived from Inductive reasoning
    Inductive follows these steps
    1) The problem
    2) Data
    3) Observation
    4) Generalisation

    Reply
  530. Avatar Onyeneke Amarachi Prisca says:
    4 years ago

    1) Inductive reasoning used by an economists which is also called EMPIRICAL method its a method of reasoning in which the premises are viewed as supplying some Evidence, but not full Assurance of the conclusion.
    eg : the Coin i pulled d from the bag is a penny therefore, all the coin bag are pennies. ”
    Even if all the premises are True in a statement inductive reasoning allows the conclusion to be false.

    2) Deductive reasoning used by an economists is the process of reasoning from one or more Statement to reach a logical conclusion .
    Its Also a type of deduction used in science and in life. Its is when you take two True Statement, or premises to form a conclusion for example, if X is equal to y. Y is also equal to Z.

    Reply
  531. Avatar Onyeneke Amarachi Prisca says:
    4 years ago

    1) Inductive reasoning used by an economists which is also called EMPIRICAL method its a method of reasoning in which the premises are viewed as supplying some Evidence, but not full Assurance of the conclusion.
    The best example of inductive reasoning in economics is the formulation of generalisation. of diminishing returns
    eg : the Coin i pulled d from the bag is a penny therefore, all the coins in d bag are pennies. ”
    Even if all the premises are True in a statement inductive reasoning allows the conclusion to be false.

    2) Deductive reasoning used by an economists is the process of reasoning from one or more Statement to reach a logical conclusion .
    Its Also a type of deduction used in science and in life. Its is when you take two True Statement, or premises to form a conclusion for example, if X is equal to y. Y is also equal to Z.

    Reply
  532. Avatar Ezechinwoye fredrick Nmesoma says:
    4 years ago

    Ezechinwoye fredrick Nmesoma
    REG NO- 2020/242614
    Economic 100level.
    Manwudikefred@gmail.com

    Some of the most important methods of economic analysis are as follows
    A) Deductive method and inductive method. The inductive. Economic genralizaions describe the laws or statments of tendencies in various branch of economics such as production,consumptions,exchange and disribution of income.

    Reply
  533. Avatar Nnamchi chisom Cynthia says:
    4 years ago

    Name: NNAMCHI CHISOM CYNTHIA
    Department: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT
    Reg No: 20635190DF
    Email address: nnamchichisom947@yahoo.com

    1) METHODS OF ECONOMIC ANALYSIS
    Any economic analysis involves the formulation of laws and generalizations through two methods:
    A) DEDUCTIVE and
    B) INDUCTIVE

    *DEDUCTIVE METHOD : This method starts from unchallenged elementary or rudimentary assumptions and then arrive at conclusions (build a hypothesis or theory) using logical analysis. This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    *INDUCTIVE METHOD: This type of reasoning flows from facts to theory. First we collect informations and facts and then move towards providing evidence using economic theory and facts; and since this method is based on facts, it is said to be more realistic and reliable and can also be a time consuming process and thus expensive as well.

    Reply
  534. Avatar NDUKWE JAMES JOHN says:
    4 years ago

    NAME: NDUKWE JAMES JOHN

    REG NO: 2020/242889

    DEPARTMENT: COMBINED SOCIAL SCIENCES (ECONOMICS AND POLITICAL SCIENCE).

    EMAIL: oziljohn12@gmail.com

    METHODS OF ECONOMIC ANALYSIS.

    There are two methods of economic analysis, they are DEDUCTIVE AND INDUCTIVE METHOD.

    DEDUCTIVE METHOD derkbes new conclusion from fundamentals assumptions established by other methods. Deductive methods involves four steps:

    1. Selecting the problem.

    2. The formulation of assumption.

    3. Hypothesis through the process of logical reasoning.

    4. Verifying the hypothesis.

    Deductive methods also involves the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of facts. MATHEMATICAL ANALYSIS are mostly used in deductive methods.

    2. INDUCTIVE METHOD is the process of reasoning in which facts are collected, arranged, and then general conclusions are drawn. STATISTICAL ANALYSIS are used in inductive method.

    Reply
  535. Avatar Ukwuoma Justice Tobechukwu says:
    4 years ago

    Name: Ukwuoma Justice Tobechukwu

    Dept.: Combined Social Science

    Faculty: Economics/Sociology and anthropology

    E-mail: juperun494@gmail.com

    Methods of Economic Analysis
    1. Deductive Method
    2. Inductive Method
    Economics methods are methods through which the economist Conducts his experiments.
    Deductive method is known as the analytical abstract a priori method.

    In Deductive method of Economic Analysis we proceed from the general to the particular.

    Principal steps in the process of deriving economics generalizations through deductive method.
    a). Perception of the problem to be inquired into: this is the process through which the analyst or thoryst acknowledges or has a clear idea of the problem to be inquired into.

    b.) Defining precisely the technical terms and making appropriate assumptions. Assumptions may be behavioral pertaining to the behavior of the economic variables or they may be technical relating to the state of technology. This could be said to be the process of finding out the main economic problem and looking for possible solutions to solving it.

    c.) Deducing hypothesis i.e deriving conclusions from the premises through the process of logical reasoning now through logical reasoning hypothesis is deduced from the assumptions made and possible solutions are are being formulated.

    d.) Testing hypothesis deduced. Hypothesis deduced have to be verified before they are established as generalization or principles of Economics

    Reply
  536. Avatar UKANWA PATRICK CHIBUIKE says:
    4 years ago

    As a matter of fact, deduction and induction are the two forms of logic that help to establish the truth.

    THE DEDUCTIVE METHOD:
    Deduction Means reasoning or inference from the general to the particular or from the universal to the individual. The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of facts.

    Then inferences are drawn which are verified against observed facts. Bacon described deduction as a “descending process” in which we proceed from a general principle to its consequences. Mill characterised it as a prior method, while others called it abstract and analytical.

    Deduction involves four steps:
    (1) Selecting the problem.
    (2) The formulation of assumptions on the basis of which the problem is to be explored.
    (3) The formulation of hypothesis through the process of logical reasoning whereby inferences are drawn.
    (4) Verifying the hypothesis.

    INDUCTION METHOD
    Induction “is the process of reasoning from a part to the whole, from particulars to generals or from the individual to the universal.” Bacon described it as “an ascending process” in which facts are collected, arranged and then general conclusions are drawn.

    The inductive method was employed in economics by the German Historical School which sought to develop economics wholly from historical research. The historical or inductive method expects the economist to be primarily an economic historian who should first collect material, draw generalizations, and verify the conclusions by applying them to subsequent events. For this, it uses statistical methods. The Engel’s Law of Family Expenditure and the Malthusian Theory of Population have been derived from inductive reasoning.

    DIFFERENCE
    The deductive method involves reasoning from a few fundamental propositions, the truth of which is assumed. The inductive method involves collection of facts, drawing conclusions from them and testing the conclusions by other facts.

    Reply
    • Avatar UKANWA PATRICK CHIBUIKE 2019/243105 says:
      4 years ago

      As a matter of fact, deduction and induction are the two forms of logic that help to establish the truth.

      THE DEDUCTIVE METHOD:
      Deduction Means reasoning or inference from the general to the particular or from the universal to the individual. The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods. It involves the process of reasoning from certain laws or principles, which are assumed to be true, to the analysis of facts.

      Then inferences are drawn which are verified against observed facts. Bacon described deduction as a “descending process” in which we proceed from a general principle to its consequences. Mill characterised it as a prior method, while others called it abstract and analytical.

      Deduction involves four steps:
      (1) Selecting the problem.
      (2) The formulation of assumptions on the basis of which the problem is to be explored.
      (3) The formulation of hypothesis through the process of logical reasoning whereby inferences are drawn.
      (4) Verifying the hypothesis.

      INDUCTION METHOD
      Induction “is the process of reasoning from a part to the whole, from particulars to generals or from the individual to the universal.” Bacon described it as “an ascending process” in which facts are collected, arranged and then general conclusions are drawn.

      The inductive method was employed in economics by the German Historical School which sought to develop economics wholly from historical research. The historical or inductive method expects the economist to be primarily an economic historian who should first collect material, draw generalizations, and verify the conclusions by applying them to subsequent events. For this, it uses statistical methods. The Engel’s Law of Family Expenditure and the Malthusian Theory of Population have been derived from inductive reasoning.

      DIFFERENCE
      The deductive method involves reasoning from a few fundamental propositions, the truth of which is assumed. The inductive method involves collection of facts, drawing conclusions from them and testing the conclusions by other facts.

      Reply
  537. Avatar Anyika Collins Chibuikem says:
    4 years ago

    1);Formulation of the problem: In any scientific study, the analyst must have a clear idea of the nature of the problem to be investigated (or enquired into). It is absolutely essential for the analyst or theorist to acquire knowledge of the relevant variables — variables about whose behaviour and interrelationship he wants to make generalisations. The perception of the problem is in most cases a complex exercise.

    2);Definition of Terms and Formulation of Assumptions:
    Since every subject has its own language, it is necessary to define certain technical terms associated with the analysis as the second step. It is also necessary to make assumptions. The assumptions maybe of different types, viz., technological, relating to the state of technology and factor endowments, or behavioural, relating to the actions of economic agents like consumers, factor owners, and producers.
    3):Formation of Hypothesis:
    The third step in making generalisations through process of logical deduction is to form a hypothesis on the basis of the assumptions made. A hypothesis is a provisional statement the truth of which is not known to us. A hypothesis just describes the relationship among factors affecting a particular phenomenon.
    4);Hypothesis Testing:
    The final step involved in the deductive method is hypothesis testing. Hypothesis testing refers to the development and use of statistical criteria to aid decision making about the validity of a hypothesis in uncertain conditions. In any decision about the validity of a hypothesis there is always a chance of making a correct choice and a risk of making a wrong choice.

    Hypothesis testing is concerned with evaluating these chances and suggesting criteria that minimise the likelihood of making wrong decisions. Therefore, hypotheses deduced through a process of logical reasoning have to be verified. Otherwise, it is not possible to establish them as generalisations or principles of economic science.

    NB:Two major problems crop up as a result of uncontrolled experiments.
    Firstly, they have to make more and more observations to verify the hypothesis or derive the generalisations. Secondly, the compul­sion of relying on uncontrolled experimentations makes the analysis very complicated. Moreover, it becomes absolutely essential to interpret the facts carefully so as to be able to discern the significant relationship among the relevant economic variables.

    Reply
  538. Avatar Chukwu precious munachi says:
    4 years ago

    Matric No.2020/242984

    METHODS OF ECONOMIC ANALYSIS
    1. DEDUCTIVE METHOD: This is a method that derives new conclusions from fundamental assumptions or from truth established by other methods.
    It involves the process of reasoning from certain laws or principles which are assumed to be true,to the analysis of facts.
    Then inferences are drawn which are clarified against observed facts.

    2. INDUCTIVE METHOD: This method is used to derive economic generalisations on the basis of experience and observations.
    Detailed data are collected with regard to a certain economic phenomenon and effort is made to arrive at certain generalisations which follow from the observations collected.

    Reply
  539. Avatar UDEH CHIKAMSO CHRISTIAN says:
    4 years ago

    UDEH CHIKAMSO CHRISTIAN
    20630411IF
    udehchistian2020@gmail.com

    The 2 methods of economic analysis include; The deductive and inductive reasoning or methods of economic analysis.

    1. DEDUCTIVE REASONING
    Deductive method of economic analysis is known as the analytical abstract a priori method. Here we start with certain formal data and assumptions. Then by logical reasoning we arrive at certain conclusions. We start with undisputed fundamental facts and after adding some assumptions we build up a theory.
    In Deductive method of Economic Analysis we proceed from the general to the particular. This is also known as an hypothetical method for some of the assumptions may not correspond to actual facts, but very near actual facts which may be used as premise for starting, reasoning and drawing conclusions. In economics we start with very simple premises and work up gradually or more and more complex hypotheses.

    2. INDUCTIVE REASONING
    In this method, economists proceed from a practical angle to problems of science to reduce the gulf between theory and practice. Induction is done by two forms, viz. experimentation and statistical form. Facts are collected first, arranged and conclusions are drawn. Then these general conclusions are further verified with reference to actual facts.
    The inductive method is generally associated with the statistical form of inductions. The statistical approach has a larger field in economic investigations than the method of experimentation. Further, the method of statistical induction is indispensable for the formulation of economic policy.

    Reply
    • Avatar NEBO CHIGOZIE JOSEPH says:
      4 years ago

      The Two Methods Analysis Used by The Economist Includes:
      Deductive methods:This implies deriving conclusions from general truths,takes few general principles and applies them to draw conclusion.For instance,we can accept the proposition that man is entirely motivated by self-interest.In applying the deductive method of economic analysis,we proceed from general to particular.
      Steps OF Deductive Methods :
      Perception of the problem to be inquired .
      Defining of the terms.
      Deducing hypothesis from the assumptions.
      Testing of hypothesis.
      Merits Of Deductive Method:
      It’s less time consuming and less expensive.
      The method facilitates in deriving economic theories.
      The method is simple because it is analytical.
      Demerits Of Deductive Method:
      The method is highly abstract.it requires a great deal of care to avoid bad logic or faulty economic reasoning.
      The method is not applicable universally.
      Some of it assumptions turns out to be based on half truths or have no relation to reality.
      Inductive Method:This is also called empirical method.It involves the process of reasoning from particular facts to general principle.In this method,data is collected about a certain phenomenon . This are systematically arranged and the general conclusions are drawn from them.
      Steps Of Inductive method:
      Experimentations, Observation and Statistical methods.
      Merits Of Inductive method:
      It is based on facts and realistic.
      It helps in future investigations.
      The method is dynamic.The changing economic phenomenon are analyzed and on the basis of collected data , conclusions are drawn from them.
      Demerits Of Inductive method:
      If conclusions drawn from insufficient data, the generalizations obtained may be faulty.
      The collection data itself is not an easy task.
      The Inductive method is time- consuming and expensive.

      Reply
  540. Avatar Chukwudi Gabriel chibuzor says:
    4 years ago

    1. Inductive Method

    In this type of reasoning we first of all collect information and facts and then try providing evidence using facts and economic theory also. In this type of method, we formulate principles using Observations, Experimentations
    Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:

    Observation

    Formulation of a hypothesis

    Generalizing principles

    Verifying against actual facts.

    1. Deductive Method

    This method is also called priori reasoning. It starts from assumptions and arrive at conclusions using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    Observation of a task/ issue

    Making the hypothesis

    Testing the hypothesis using more observations, etc.

    Chukwudi Gabriel chibuzor.
    Public administration and local government.
    21533383AF

    Reply
  541. Avatar FALETI SEGUN says:
    4 years ago

    FALETI SEGUN TOBI
    REG NO: 2020/242563
    E-MAIL: faletisegunoye@gmail.com

    DEDUCTIVE METHOD
    It can be define as making of generalization based on observation from few fundamental proposition. It requires collection of fact either through primary or secondary source and taking observation. After which an assumption is now deduced from available facts using logical system. Moreover, hypothesis are created and tested to check accuracy of the theory, if found accurate and exact, then generalization can be made, but if it conflict with present economic situation, it will be modified or nullified. Deductive method is easy and less stressful to conduct. It is the major method used in economics to conduct theories.

    INDUCTIVE METHOD
    Inductive method is also known as statistical method, it uses Econometric system for making economics theory. It can also be referred to the use of statistic method i.e collecting, analyzing, summarizing and interpreting of data to make and test economic theory. Inductive method is stressful and requires much data and it’s also expensive to conduct. Economic theory under inductive method must be backed up with good statistic proof such as regression. Regression weigh the relationship between independent variable and dependent variable. The process after identifying a particular problem to work on involve, recognizing technical terms and variables involve then collection of data showing relationship between the variables; this is what makes inductive method distinct from deductive method. The next step is construction of economic theory after data collected have been processed. Once this is done, one can now make prediction on its basis and test it using statistical method. Deductive method is said to be suitable for making theory while statistical method is used to test the accuracy.

    Reply
  542. Avatar Onah Angela Chinemerem 20684187FF says:
    4 years ago

    What are the basic methods of analysis used by economists: Inductive method and Deductive method
    INDUCTIVE METHOD
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts.
    DEDUCTIVE METHOD
    This is also called a priori reasoning. We short from unchallenged elementary or rudimentary assumptions/facts and then arrive at conclusions( build a hypothesis or theory) using logical analysis or our own analytical abilities.

    Reply
  543. Avatar Ugwu Clara Nnedimma says:
    4 years ago

    Deductive analysis: They are method of economic analysis which deals with identification (perception of problem), finding the technical test and explaining them, making assumptions, hypothesis and testing the hypothesis
    Inductive analysis: They are similar to that of Deductive analysis but they use econometric package to run their economy.

    Reply
  544. Avatar Olieh angel chisom says:
    4 years ago

    The basic methods are
    1)deductive methods
    2)inductive methods
    (Deductive method)
    Deductive method also called abstract, or analytical represent an abstract approach to the derivation of economic generalization and theories.
    The process of making generalization using deductive method include:
    1)perception of problem acquired Into first
    And economist deduct to turn generalization into theory.
    2)define precisely the technical terms and then based on explanation make realistic assumption which are also called postulate.
    3)deduce hypothesis which is getting conclusion from those realistic assumption.

    Inductive method
    This is quite similar to deductive method but we use econometric packages to run our experiment. Inductive method is also called empirical method.it derives economic generalization on the basis of experiment and observation. In inductive method detailed data are collected and made to arrive at certain generalization which follow from the observation made.
    The three ways for deriving economic principles and theories are.
    1) experimentation
    2) observation
    3) statistical or econometric method.

    Olieh angel chisom
    Public administration and local government
    2020/240243

    Reply
  545. Avatar Ukeje Favour Chinemerem says:
    4 years ago

    Economic analysis in most cases involves the formulation of laws and this can be achieved by these methods – Deductive and Inductive method.
    DEDUCTIVE REASONING also known as priori reasoning, involves the observation of issues, making and testing hypothesis using more observation and if generally accepted becomes an Economic law. This method is simple as only simple deduction is needed and boosts economic reasoning. Sometimes wrong hypothesis made may result to wrong conclusion.
    In INDUCTIVE REASONING, facts, information and theories are gathered and tested on through thorough observation and experiment and obtained result may or may not be verified. This method is more reliable since it is based on facts and statistical methods are used in this approach. It is time consuming and expensive and can be affected by limited data sources.

    Reply
    • Avatar UKEJE FAVOUR CHINEMEREM says:
      4 years ago

      NAME: UKEJE FAVOUR CHINEMEREM
      REG.NO:2019/245555
      EMAIL: ukejefavour22@gmail.com
      DEPARTMENT OF PURE AND INDUSTRIAL CHEMISTRY

      Reply
  546. Avatar Okorie Emmanuel Chimereucheya 20637413DF says:
    4 years ago

    WHAT ARE THE BASIC METHOD OF ANALYSIS USED BY ECONOMISTS:
    (1) Deductive Method
    (2) Inductive Method

    BRIEFLY AND CONVICEINGLY DISCUSS EACH OF THEM
    (1) DEDUCTIVE METHOD: This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific.
    (2) INDUCTIVE METHOD: This type of reasoning flows from fact you theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods observation,experimental, statisitical methods.

    Reply
  547. Avatar Onuah precious onyinyechukwu says:
    4 years ago

    NAME: ONUAH PRECIOUS ONYINYECHUKWU
    FACULTY: SOCIAL SCIENCE
    DEPT: ECONOMICS
    REG NO: 20184874CA

    There are two methods of economic analysis this includes:
    1.) Inductive Method
    2.) Deductive Method
    I will exapanciate on the above listed Methods starting with the former inductive Method.
    *Inductive Method of economic analysis is also referred to as emperical method this derives Economic generalization on the basis of observation and experience. In this method number of observations has to be large for it to yield a valid Economic generalization. This method does not operate on the basis of few observations. Observations, statistical or economic method and experimentation are the three ways which can be used to derive Economic principles and theories.
    They are various steps in inductive Method of economic analysis. First is to identify the problem then you define technical terms and variables related to the problem. Thirdly construct Economic theories, predictions are made in respect to the behavior of the economy.
    If for any reason the predictions are in conflict with the actual facts the theory is discarded but if the predictions are in agreement with the actual facts and behavior of the economy then a new and trustful theory has been developed.
    *Deductive Method of economic analysis is referred to as analytical or abstract method. This serves as an abstract approach to the derivation of economic generalization and theories. The steps involved in this method is to identify the problem to be solved then define clearly the technical terms and making logical assumptions.Hypothesis is derived from the premises. The hypothesis is then tested to determine the factuality of the assumptions.

    Conclusively both deductive and inductive Method is complimentary rather than competitive. They are both required to develop better Economic theories this notion is backed up by marshall when he pointed out that right and left foot are both needed for walking.
    Which means the derivation of economic generalization through the approach of deductive logic without emperically testing them through inductive method is not proper.

    Reply
  548. Avatar ASOGWA CHIMEZIE HENRY says:
    4 years ago

    ASOGWA CHIMEZIE HENRY Faculty: social science Department: economics Reg number: 20748585CA Email: chimeziehenry841@gmail.com

    Method of economic analysis
    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.

    Deductive Method
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    1-It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    2-This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method
    1-In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    2_Inductive Method

    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    1 Observation
    2 Formulation of a hypothesis
    3 Generalizing principles
    4 Verifying against actual facts.

    Advantages of Inductive Method

    1 Since it is based on facts it is more realistic and reliable.
    2 Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    3 Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantages of Inductive Method

    * If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    * It is a time-consuming process and thus expensive as well.
    * The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  549. Avatar Onuah precious onyinyechukwu says:
    4 years ago

    There are two methods of economic analysis this includes:
    1.) Inductive Method
    2.) Deductive Method
    I will exapanciate on the above listed Methods starting with the former inductive Method.
    *Inductive Method of economic analysis is also referred to as emperical method this derives Economic generalization on the basis of observation and experience. In this method number of observations has to be large for it to yield a valid Economic generalization. This method does not operate on the basis of few observations. Observations, statistical or economic method and experimentation are the three ways which can be used to derive Economic principles and theories.
    They are various steps in inductive Method of economic analysis. First is to identify the problem then you define technical terms and variables related to the problem. Thirdly construct Economic theories, predictions are made in respect to the behavior of the economy.
    If for any reason the predictions are in conflict with the actual facts the theory is discarded but if the predictions are in agreement with the actual facts and behavior of the economy then a new and trustful theory has been developed.
    *Deductive Method of economic analysis is referred to as analytical or abstract method. This serves as an abstract approach to the derivation of economic generalization and theories. The steps involved in this method is to identify the problem to be solved then define clearly the technical terms and making logical assumptions.Hypothesis is derived from the premises. The hypothesis is then tested to determine the factuality of the assumptions.

    Conclusively both deductive and inductive Method is complimentary rather than competitive. They are both required to develop better Economic theories this notion is backed up by marshall when he pointed out that right and left foot are both needed for walking.
    Which means the derivation of economic generalization through the approach of deductive logic without emperically testing them through inductive method is not proper.

    Reply
  550. Avatar Izukanne Chibuzor Abigail says:
    4 years ago

    NAME: Izukanne Chibuzor Abigail
    REG NO: 2020/242981
    EMAIL : abiglove2017@gmail.com
    There are two basic methods of analysis used by Economist. They are ;
    Deductive and Inductive Method.
    1) Deductive Method: which is also called abstract or analytical method, represents an abstract approach to the derivation of economic generalizations and theories.
    There are four steps in the process of making economic generalizations through deductive method ;
    a) Perception of the Problem: the analyst must have a clear idea of the problem he wants to enquire into.
    b) Definition of Technical Terms and Making of Assumptions: it is to define clearly and precisely the various technical terms to be used in the analysis as well as to state the assumptions the analyst makes to derive the generalization.
    c) Deducing Hypothesis Through Logical Deduction: Hypothesis is deduced from assumptions made through logical processes. This process may be done with the help of formal mathematics.
    d) Testing or Verification of Hypothesis : The reliance of Economist on uncontrolled experience increases the number of observations required to verify the hypothesis or establish generalizations.
    2) Inductive Method: is also called empirical method, derives generalizations on the basis of experiments and observations.
    The various ways which we can use in deriving economic generalizations and theories are;
    a) Identify the Problem.
    b) Defining Technical Terms and Variables Related to the Problem.
    c) Collection of data about the variables related to the possible functional relationships between variables.
    d) Processing of data collected and finding out What relationship between the variables hold true.
    e) Making of Predictions.
    In conclusion, both the deductive and inductive method goes hand-in-hand. They are both needed in order to derive economic generalizations.

    Reply
  551. Avatar ASOGWA CHIMEZIE HENRY says:
    4 years ago

    ASOGWA CHIMEZIE HENRY
    Eco 101
    Department: Economics
    Email: chimeziehenry841@gmail.com
    Reg number: 20748585CA

    Question: method of economic analysis
    Answer:
    Any economic analysis involves the formulation of laws and generalizations through two methods- deductive and inductive.

    Deductive method:
    This is also called a priori reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific. The stages in deductive reasoning are:

    _ Observation of a task/ issue
    _ Making the hypothesis
    _ Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantage of deductive method
    1_ It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    2_ This method is important for economists as it focuses upon economic reasoning which is of paramount importance.

    Disadvantage of duductive method
    1- In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.

    2 INDUCTIVE METHOD
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.Data is collected about a particular economic theory and then conclusions are drawn. The stages in this method are:
    * Observation
    * Formulation of a hypothesis
    * Generalizing principles
    * Verifying against actual facts.

    Advantage of inductive method.
    #- Since it is based on facts it is more realistic and reliable.
    #- Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    # Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.

    Disadvantage of inductive method
    _ If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    _ It is a time-consuming process and thus expensive as well.
    _ The collection of all the data is not an easy job and varies from person to person. As to how they collect data.

    Reply
  552. Avatar Umezeh Somtochukwu Lucy says:
    4 years ago

    Name : Umezeh Somtochukwu Lucy
    Matric reg no: 2020/ 242622
    Jamb email : somtochukwulucy@gmail.com

    The basic method of economic analysis are:

    1. Deductive method can also be called abstract method. The abstract method is done by deriving conclusion from facts taken and analyzed to draw conclusions.
    Stages :
    a. The analyst must have a valid and clear idea of the problem
    b. The analyst must clearly note the technical terms
    c. In deriving generalization,the analyst must derive hypothesis from assumptions made.
    d. Verification of hypothesis must be carried out
    Deductive method is less time consuming and helps in economic theories.

    2. Inductive method is also called empirical method. It involves the process of reasoning from particular facts to principles. This method deals with data collected on a certain phenomenon. For example; there are 50 students in a school store,45 buy from the first hand book,out of the 5 remaining,4 buy second hand books,while the fifth though poor buys from the same bookstore with those who bought first hand books. From this,we can say that pupils like to buy the books they could afford,while some student have to use his/ her common sense to make decisions. The stages of both methods are same.

    In conclusion,both methods are needed for economic analysis,we can apply any of them or both if such situation arises.

    Reply
  553. Avatar ASOGWA CHIMEZIE HENRY says:
    4 years ago

    ASOGWA CHIMEZIE HENRY
    Faculty: social science
    Department: economics
    Reg number: 20748585CA
    Email: chimeziehenry841@gmail.com
    Eco 121
    Types of Accounting

    Financial accounting
    Governmental accounting
    Public accounting
    Cost accounting
    Forensic accounting
    Management accounting
    Tax accounting
    Auditing

    1- Auditing: While Auditing involves the tracking and reporting of all financial activity for a business, auditing is designed to provide an independent analysis of that financial activity to ensure that a business is recording transactions following the acceptable rules and standards that apply.

    2- public accounting: Public accounting firms provide accounting services to a variety of clients, including service businesses, manufacturers, retailers, nonprofit organizations, governmental organizations, and individuals. Public accounting focuses on auditing, tax preparation, tax advisory, and consulting activity, including financial statement preparation and analysis.

    3_ financial accounting:The primary purpose of financial accounting is to track, record, and ultimately report on financial transactions by generating financial statements.

    This must be done using the standardized guidelines found in Generally Accepted Accounting Principles (GAAP) rules. These rules are set by the Financial Accounting Standards Board (FASB) and are designed to promote consistency in the reporting process, so Company A will use the same reporting methodology as Company B. There are three types of financial accounting
    1-balance sheet
    2_income statement
    3- statement of cash flow.

    4_management:Management accounting is a form of accounting used in businesses worldwide. Management accounting is designed to provide management with the information necessary to make high-level decisions for the business.
    Management accounting information is shared exclusively with others in an organization. However when comparing managerial and financial accounting, the latter is designed to inform shareholders, investors, and financial institutes about the performance of a business for a specified period of time.
    In addition, management accounting is forward-looking, devising ways to operate more efficiently while providing management with the tools and resources to form sound policies and procedures.
    Three common types of management accounting are used:
    Strategic management
    Performance management
    Risk management

    Reply
    • Avatar Tony Orji says:
      4 years ago

      You have not submitted this assignment well so no score for you until you submit it under Eco.121. Do you understand?

      Reply
  554. Avatar AJAEGBUEZE BONAVENTURE says:
    4 years ago

    NAME:AJAEGBUEZE BONAVENTURE
    DEPARTMENT: ECONOMICS
    MATRIC NUMBER:2020/242570
    EMAIL: ajaegbuezebonaventure4@gmail.com
    (1)Deductive method:is method of derivation of economic generalisations and theories, which entails perception of the problem to be enquired.Defining precisely the technical terms and making appropriate assumptions is also a process.Deducing hypothesis and testing the hypothesis is also a process followed in the Deductive method process.

    (2) Inductive method:it involves deriving economic generalisation in the basis of experience and observation.They are three ways of getting theories here example Experimentation, Observation and Statistical or Econometric method.

    Reply
  555. Avatar Orji Chinecherem jacinta says:
    4 years ago

    Name : ORJI Chinecherem jacinta.
    Reg number:20643568EA

    METHOD OF ECONOMIC ANALYSIS

    1) Deductive method
    The deductive method is also called abstract analytical and a prior method and represent an abstract approach to the derivation of economic generalisation and theory.
    Steps in the process of deriving Economic generalisations through deductive logic .
    a) perception of the problem to be enquired into .
    b) defining precisely the technical terms and making appropriate assumption often called a postulates or premises .
    c) deducing hypotheses ,that is deriving conclusion from the premises through the process of logical reasoning .
    d) testing of hypothesis deduced .

    2) inductive method
    The inductive method which is also called emphrical method derives Economic generalisation on the basis of experience and observation.in this method detailed data are collected with regard to a certain Economic phenomenon, and effort is then made to arrive at a certain generalisation which follow from the observation collected .
    Ways which can be used for deriving Economic principles and theories .
    a) Experimentation
    b) observation
    c)statistical or Economeric method .

    Reply
  556. Avatar Onyemalu Belinda Chinyere says:
    4 years ago

    Name: Onyemalu Belinda Chinyere
    Reg No: 2020/242633
    Email Address: Belindachinyere2003@gmail.com

    Question
    Methods of Economic Analysis
    Any economic analysis involves the formulation of laws and generalization through two methods which are; deductive and inductive
    Deductive methods: It is also called abstract, analytical or priori methods and represents an abstract approach to the derivation of economic generalizations and theories. The principal steps in the process of deriving economic generalizations through deductive methods are:
    a. Perception of the problem to be inquired.
    b. Defining precisely the technical terms and making appropriate assumptions.
    c. Deducing hypothesis that is deriving conclusions from the process of logical reasoning.
    d. Testing of hypothesis deduced.
    2. Inductive method: It is also called empirical method. It derives economic generalizations on the basis of experience and observations. In this method, detailed data are collected with regard to a certain economic phenomenon and effort is made to arrive at certain generalization which follow from the observations collected. One should not generalise on the basis of a very few observation. We can use the experimentation, observations and econometric methods to derive economic principles.

    Reply
  557. Avatar NWANOSIKE CHINONSO AMOS says:
    4 years ago

    NAME: NWANOSIKE CHINONSO AMOS
    MATRIC NUMBER: 2020/242603
    DEPARTMENT: ECONOMICS
    COURSE CODE: ECO 121
    COURSE TITLE: INTRODUCTION TO ACCOUNTING

    TYPES OF ACCOUNTING
    (1) FINANCIAL ACCOUNTING
    Financial accounting is the process of compiling financial report for external use.

    (2) MANAGERIAL ACCOUNTING
    This type of accounting documents , monitors and assist in the financial planning of an organization.This is typically meant for internal stakeholders rather than external.

    (3) COST ACCOUNTING
    This is a sub category of managerial accounting, cost accountants are responsible for documenting,presenting and reviewing manufacturing cost of a company.

    (4) AUDITING
    This is divided into two parts; namely the internal and the external auditing
    •The Internal auditing _ determines the effectiveness of the internal accounting process he or she reviews the employee department, responsibility management, policies and approval of procedures on related projects.
    •External Auditing _ is the action of a company providing a financial statement to a third-party for financial feedback.

    (5) TAX ACCOUNTING
    Tax accounting helps business to stay in compliance with annual tax codes which they file each year.

    (6) ACCOUNTING INFORMATION SYSTEM (AIS)
    This manage the improvement of successful accounting procedures,they make decisions in coalition with Industrial training department to instill continuity with the technological process.

    (7) FIDUCIARY ACCOUNTING
    Fiduciary accounting is the procedure of trusting one individual to handle financial accounts, they are obligated to serve on behalf of the clients,for account tied to be real estate,trust funds etc…

    (8) FORENSIC ACCOUNTING
    Forensic accounting requires accountants to reconfigure a company’s financial information when some information is Missing or not available to review.

    (9) PUBLIC ACCOUNTING
    Public accounting refers to a business that provides accounting advice to clients based on their needs.
    Public accounting can work in auditing, assist with tax returns and consult on procedures tailored to the installation of technology

    (10) GOVERNMENT ACCOUNTING
    This accountants manages the financial planning and allocation of resources to departments within local ,state and federal government.

    Reply
    • Avatar Success says:
      4 years ago

      UGWOKE SUCCESS CHINASA
      MATRIC NO: 2020/243250
      JAMB REG. NO: 20684868HA

      METHOD OF ECONOMIC ANALYSIS
      Any economic analysis deals with formulation of laws and generalizations through two methods. Namely Deductive and inductive methods this two are the most important methods of economic .
      Economic Generalization
      This describes the law or statements of tendencies in various branches of economic such as production, consumption and exchange and also the distribution of income.
      The generalization of economics like the law of other sciences has been found to be true by empirical evidence.
      Deductive Method
      This is also known as abstract, analytical and a prior, method and represents an abstract approach to the derivation of economic generalization and theories
      Steps in the process of deriving economic generalization through deductive logic are;
      Perception of the problem to be enquired into
      Defining precisely the technical terms and making appropriate assumptions often called postulates of premises
      A low or generalization just describes the relationship between variables. It does not provide any explanation of the described relation on the other hand. A theory provides an explanation of stated relation between the variables, which is it brings out the logical basis of the generalization through process of logical reasoning and explain the stated generalization will hold true.
      Deductive method;
      Generalization in economics have been derived in two ways which are
      Deductive method and
      Inductive method
      Deductive method is also called abstract analytical and a prior method and represents an abstract approach to the derivation of economic generalization and theories
      The principle steps in the process of deriving economic generalizations through deductive logic are;
      Perception of the problem to be enquired into.
      Defining precisely the technical terms and making appropriate assumptions often called postulate or premises.
      Perception of the problem
      In any scientific enquiry, the analyst or theorist must have a clear idea of the problem to be enquired into.
      Definition of Technical terms and making of assumptions. Assumptions are made on the basis of observations.
      There are three ways which can be used for deriving economic principles and theories:
      Experimentation
      Observations
      Statistical or Econometric method
      INDUCTIVE METHOD
      The inductive method is also called empirical method which derives economic generalization on the basic of experience and observations.
      There are three ways which can be used for deriving economic principles and theories: they are:
      Experimentation
      Observations
      Statistical or economic method

      Steps in Inductive method
      To identify the problem
      Defining technical terms and variables related to the problem
      Finding out what relations between the variables actually hold good. from this, a theory is developed which can be further refined and tested through statistical method.
      Ones the theory has been developed, one can make predictions on it basic as done in the deductive approach.

      Reply
    • Avatar Tony Orji says:
      4 years ago

      You have not submitted this assignment well, so no score for you until you submit it under Eco. 121 column. Do you understand?

      Reply
      • Avatar Nwakuche Amarachi Goodness says:
        4 years ago

        NAME: NWAKUCHE AMARACHI GOODNESS
        REG NO: 20708146FF
        DEPARTMENT: NURSING SCIENCES
        COURSE CODE: ECO 101
        COURSE TITLE: PRINCIPLES OF ECONOMICS
        EMAIL: amarachi.nwakuche.247174@unn.edu.ng

        The two main methods of analysis used by economists are:
        1) Inductive method: this method is empirical. In this method, economic generalisations or theories are made based on real experiments and observations which entail the collection of data, analysis of data collected and arrival of generalisation(s) which follow from the observations collected.

        2) Deductive method: this method is purely abstract. It is not based on experiments. Here, one is expected to theoretically perceive a phenomenon, use terms to explain such phenomenon, make assumptions and deduce logical generalisation(s) from the phenomenon.

        Reply
  558. Avatar Onyemalu Belinda Chinyere says:
    4 years ago

    Name: Onyemalu Belinda Chinyere
    Reg No: 20730634JF
    Email Address: Belindachinyere2003@gmail.com

    Question
    Methods of Economic Analysis
    Any economic analysis involves the formulation of laws and generalization through two methods which are; deductive and inductive methods.
    1. Deductive method: It is also called abstract, analytical and priori methods and represents an abstract approach to the derivation of economic generalizations and theories. The principal steps in the process of economic generalizations through deductive methods are:
    a. Perception of the problem to be inquired
    b. Defining precisely the technical terms and making appropriate assumptions.
    c. Deducing hypothesis that is deriving conclusions from the process of logical reasoning.
    d. Testing of hypothesis deduced.

    2. Inductive methods: It is also called empirical methods. It derives economic generalizations on the basis of experience and observations. In this method, detailed data are collected with regard to a certain economic phenomenon and effort is made to arrive at certain generalization which follow from the observation collected. One should not generalise on the basis of a very few observation. We can use the experimentation, observation and econometric methods to derive economic principles.

    Reply
  559. Avatar NWANOSIKE CHINONSO AMOS says:
    4 years ago

    NAME: NWANOSIKE CHINONSO AMOS
    MATRIC NUMBER:2020/242603
    DEPARTMENT: ECONOMICS
    COURSE CODE: ECO 101
    COURSE TITLE: PRINCIPLES OF ECONOMICS

    TWO WAY OF ECONOMIC ANALYSIS
    (1) DEDUCTIVE METHOD: This works from the more general to the more approach which is sometimes called informally as “top down” approach.
    Which might begin with thinking up a theory about a particular topic of interest,then narrow it down into a more specific hypotheses that can be tested,or it can still be narrowed further to collect observation to address the hypotheses, this will ultimately make it to be tested with a specific data _ A confirmation of the original theory.
    (2) INDUCTIVE METHOD:
    This works on the otherway moving a specific observation to broader generalization and theories. This can also be called informally as “bottom up” approach
    Inductive method began specific observations and measures; began to detect patterns and regularities.formulate some tentative hypotheses that we can explore and finally end up developing some general conclusions or theories.

    Reply
  560. Avatar Odeh Dorathy Oluebube says:
    4 years ago

    Deductive reasoning
    This is also called a prior reasoning. We start from unchallenged elementary or rudimentary assumptions/ facts and then arrive at conclusions(build a hypothesis or theory) using logical analysis or our own analytical abilities. In this kind of reasoning, we go from general to specific.
    The stages in deductive reasoning are:
    Observation of a task/ issue
    Making the hypothesis
    Testing the hypothesis using more observations, etc.
    This reasoning gives us a hypothesis and if this hypothesis gets verified we get general economic principles or laws.

    Advantages of Deductive Method
    It is a simple method, doesn’t involve the use of any complex software analysis, etc. only simple deductive logic is required.
    This method is important for economists as it focuses upon economic reasoning which is of paramount importance.
    Disadvantages of Deductive Method
    In this method of reasoning we start from assumptions, thus, if the assumptions happen to be logically flawed the whole process becomes faulty and would give wrong conclusions. Thus, the logical fallacy is a disadvantage of this method.
    Inductive Method
    This type of reasoning flows from facts to theory. First, we collect information and facts and then move towards providing evidence using economic theory and facts. This method formulates principles using the sub-methods- Observations, Experimentations, Statistical methods.
    Data is collected about a particular economic theory and then conclusions are drawn.
    The stages in this method are:
    Observation
    Formulation of a hypothesis
    Generalizing principles
    Verifying against actual facts.
    Advantages of Inductive Method
    Since it is based on facts it is more realistic and reliable.
    Using statistical methods and experimentations makes the process more scientific, thus, more acceptable universally rather than just depending on your own reasoning and logic.
    Since the economic environment is dynamic and always changing, relying upon a more scientific method always helps reach logical conclusions.
    Disadvantages of Inductive Method
    If the data used is insufficient and faulty it would lead to faulty conclusions, making the hypothesis less reliable.
    It is a time-consuming process and thus expensive as well.
    The collection of all the data is not an easy job and varies from person to person. As to how they collect data.
    Name: Odeh Dorathy Oluebube
    Reg no:2019/241043
    Department: Pure and Industrial chemistry

    Reply

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