Here are 10 absolutely foolproof reasons for studying economics. As an economist, you can make a living from predicting future economic events.
Inductive method and deductive method.
Economics is one of the very important discipline in the world. Since every countries are trying to attain both the growth and development it is become more significant.
Because economics systematically explain how to determine the problem of society especially economic related. Further it also suggests the way for how to utilize the resources of a country in an maximum and optimum manner as possible.
The modern theories of economics is built based on the reality. It can prove by analyzing and understanding of the modern theory after the Keynesian revolution in economics. Any how economists studying economics on the basis of considering many things. Actually economists are researching the solution for an economy or a country.
To solve or find out solution they should follow a good scientific method. The methodology means the way of studying problems by economists. Generally the economists follows two major methodologies. That is deductive method and inductive method. Each of them are briefly described in the coming paragraphs….
Deductive method Deductive method is the way of reasoning from general view to particular or from common to individual.
The economists solve a problem in this method by building economic models. Models may be in the form of variables, graphs etc.
Since in this method the problem is analyzing by individual units they will be micro economic model. This method is also known as analytical method or priory method. Inductive model It is just opposite method of deductive method. Where the economists reasoning from particular to general.
So, macro economic models are built by inductive method. Because macro economic variables are dealing with the general view or general outlook. This method is also known as empirical method or realistic method.Economic methodology is the study of methods, especially the scientific method, in relation to economics, including principles underlying economic reasoning.
In contemporary English, 'methodology' may reference theoretical or systematic aspects of a method (or several methods). Success in the economics major is good preparation for a variety of careers.
Studying economics will develop habits of careful thought, the application of mathematics, and practice in clear writing. Economists engage the world of current affairs.
Studying economics includes learning to use statistics and to read critically. A study of infant feeding practices was carried out on a sample of mother and infant pairs. The results revealed that only 20% of mothers in the study currently exclusively breastfeed their babies.
Methods of Study in Economics In economics, there are two methods of deriving the generalizations or laws and they are called as deductive method and inductive method.
Chapter One The Nature and Method of Economics CHAPTER OVERVIEW This chapter begins with a discussion of the meaning and importance of economics. In this first chapter, however, we will not plunge into problems and issues; instead we consider some important preliminaries.
this article saying about two methods used by economists for studying economics.
Inductive method and deductive method. Economics is one of the very important discipline in the world. every day the significant and the scope of economics .