Livestock Economics, Marketing and Business Management

METHODOLOGY OF ECONOMICS

• Economics has certain method for discovery of laws and theories.
• There are two methods of investigation available to economics.
  • Deductive method.
  • Inductive method.

Deductive method (Analytical or Apriori method)

• It descends from "generals" to "particulars".
• This method starts with the few indisputable facts about human nature and draw inferences about concrete individual cases.

Inductive method (Realistic or Historical)

• It goes up from "Particulars" to "generals".
• This method insists on the examination of facts and then laying down general principles.
• Modern economists use both methods and consider that induction and deduction are both needed for scientific thought as the right and left foot are needed for walking. Which of the two methods is to be used in particular situation depends upon the nature of inquiry the material on hand and stage at which inquiry has reached.
• The deductive method seems to be more suitable in the field of pure theory and inductive method for formulating practical policies.