Introduction To Micro-Economics — Economics STD 11 — Question

There are two types of methods used in economics.
i. Deductive Method :

1. It is also named as an analytical or abstract method.
2. It is a process in logic facilitating or arriving at an inference, moving from general to particular.
3. It consists of deriving conclusions from general truths.

ii. Inductive method :
The inductive method is also called as empirical method. It involves the process of reasoning from particular facts to the general principles. In this method, economic generalizations are derived based on

1. Experimentations
2. Observations
3. Statistical methods

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”