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SCIENTIFIC METHOD:
Answering these questions, and thousands of others, is what the scientific method is all about.
Explaining Things
It is one thing to attribute the daily movement of the sun across the sky to the efforts of a Greek god. It is quite another to explain this movement using gravity and planetary orbits.
The great thing about the ability to explain is the resulting ability to predict. Knowing that the sun's movement is guided by the law of gravity makes it possible to predict its position tomorrow, next week, or next year. This information helps when doing things like flying to the moon.
Components of the Method
Theory : The starting point, but also the end result, of doing science is the theory. A theory is a scientifically accepted, interrelated body of general principles used to explain and understand some aspect of the world. A theory creates a framework for investigating and explaining the world. It helps make sense out of what might appear to be random events. A theory offers an explanation for these events. It explains WHY things happen.
: The starting point, but also the end result, of doing science is the theory. A theory is a scientifically accepted, interrelated body of general principles used to explain and understand some aspect of the world. A theory creates a framework for investigating and explaining the world. It helps make sense out of what might appear to be random events. A theory offers an explanation for these events. It explains WHY things happen.
Principles : Principles are generally accepted, verified, fundamental laws of nature. As a house is constructed from concrete, lumber, and nails, a theory is constructed from principles. To be a fundamental law of nature, a principle must capture a cause-and-effect relation about the workings of the world. One example might be something like, "people seek the greatest benefit at the lowest cost." The scientific method is essentially the process of building theories by identifying and verifying these fundamental laws of nature.
: Principles are generally accepted, verified, fundamental laws of nature. As a house is constructed from concrete, lumber, and nails, a theory is constructed from principles. To be a fundamental law of nature, a principle must capture a cause-and-effect relation about the workings of the world. One example might be something like, "people seek the greatest benefit at the lowest cost." The scientific method is essentially the process of building theories by identifying and verifying these fundamental laws of nature.
World View : A world view contains fundamental, and unverifiable axioms, beliefs, and values about how the world works. Religious beliefs, political philosophies, and cultural conditioning are just a few of the components that go into a person's world view. These components are largely "accepted on faith" and cannot be tested or verified directly. Without a doubt, the best example of a world view component is the belief in God--a supreme, omniscient, omnipotent being. Another example is the presumption that human beings are basically good (as opposed to basically evil). These beliefs cannot be directly verified and must be accepted on faith.
: A world view contains fundamental, and unverifiable axioms, beliefs, and values about how the world works. Religious beliefs, political philosophies, and cultural conditioning are just a few of the components that go into a person's world view. These components are largely "accepted on faith" and cannot be tested or verified directly. Without a doubt, the best example of a world view component is the belief in God--a supreme, omniscient, omnipotent being. Another example is the presumption that human beings are basically good (as opposed to basically evil). These beliefs cannot be directly verified and must be accepted on faith.
Hypotheses : Principles are the end result of a long, scrutinizing process that starts with hypotheses. A hypothesis is a reasonable proposition about the workings of the world that is inspired or implied by a theory and which may or may not be true. Hypotheses are generated from informed ignorance--informed, because they are implied by a theory that has been previously subjected to a great deal of scrutiny, but ignorance, because no one yet knows if the hypothesis is right.
: Principles are the end result of a long, scrutinizing process that starts with hypotheses. A hypothesis is a reasonable proposition about the workings of the world that is inspired or implied by a theory and which may or may not be true. Hypotheses are generated from informed ignorance--informed, because they are implied by a theory that has been previously subjected to a great deal of scrutiny, but ignorance, because no one yet knows if the hypothesis is right.
Verification : This gives rise to the fifth and last part of the scientific method, verification. To know if a hypothesis is right or wrong, comparison is made with data, empirical observations drawn from the real world. The scientific method is ultimately concerned with explaining the workings of the real world. Perhaps a Greek god carries the sun across the sky. Perhaps the sun's apparent trek across the sky is caused by the rotation of the earth. Both are hypothesized relations for the perceived motion of the sun. Which is correct? The only way to know is through verification and testing--to compare the hypotheses with what actually happens in the real world.
Verifying hypotheses with real world data is the crucial step in transforming a hypothetical relation into a fundamental law of nature--a principle. A hypotheses must pass the real-world-data test to become a principle. And this is the scientific method.
More than a Subject, a Process
In fact, science is more than a subject. It is a process. The scientific method can be applied to a wide range of subjects, including things like human behavior, the economy, and, in general, society. This scientific study of society gives rise to the social sciences. That is where economics can be found. It is a social science, the scientific study of society.
Science, whether physical or social, differs only in WHAT it studies, not HOW it studies. Science is not a specific subject, but a way of viewing the world. And this process, this scientific method, is the topic of the day.
A Word About Values
What are the Methods of Economics?
Methods of Economics: First, Definition of Economics as; The social science concerned with the efficient use of limited or scarce resources to achieve maximum satisfaction of human materials wants. This article explains the Methods of Economics; Economic methodology is the study of methods, especially the scientific method, about economics, including principles underlying economic reasoning. The deductive and inductive method involves reasoning from a few fundamental propositions, the truth of which is assumed. Human wants are unlimited, but the means to satisfy the wants are limited. Also learn, What are the Fundamentals of Economics?
Here are explaining and learn, What are the Methods of Economics?
The following Methods of Economics below are;
The Economic Perspective:
Scarcity and choice: Resources can only use for one purpose at a time. Scarcity requires that choices make. The cost of any good, service, or activity is the value of what must give up to obtain it. As well as, How to explain the Nature of Business Economics?
Resources can only use for one purpose at a time. Scarcity requires that choices make. The cost of any good, service, or activity is the value of what must give up to obtain it. As well as, Rational Behavior: Rational self-interest entails making decisions to achieve maximum fulfillment of goals. Different preferences and circumstances lead to different choices. Rational self-interest is not the same as selfishness.
Rational self-interest entails making decisions to achieve maximum fulfillment of goals. Different preferences and circumstances lead to different choices. Rational self-interest is not the same as selfishness. Marginalism – benefits, and costs: Most decisions concern a change in current conditions; therefore the economic perspective is largely focusing on marginal analysis. Each option considered weighs the marginal benefit against the marginal cost. Whether the decision is personal or one made by business or government, the principle is the same. The marginal cost of action should not exceed its marginal benefits. There is “no free lunch” and there can be “too much of a good thing.”
Why Study Economics?
The below are;
Economics of citizenship: Most political problems have an economic aspect, whether it is balancing the budget, fighting over the tax structure, welfare reform, international trade, or concern for the environment. Both the voters and the elected officials can fulfill their role more effectively if they have an understanding of economic principles.
Most political problems have an economic aspect, whether it is balancing the budget, fighting over the tax structure, welfare reform, international trade, or concern for the environment. Both the voters and the elected officials can fulfill their role more effectively if they have an understanding of economic principles. Professional and personal applications: The study of economics helps to develop an individual’s analytical skills and allows students to better predict the logical consequences of their actions. Economic principles enable business managers to make more intelligent decisions. Economics can help individuals make better buying decisions, better employment choices, and better financial investments. Economics is, however, mainly an academic, not a vocational subject. Its primary objective is to examine problems and decisions from a social rather than a personal point of view. It is not a series of “how to make money” examples.
Methods of Economics:
Some of the most important methods of economic analysis are as follows:
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. In the view of Robbins, economic generalizations or laws are statements of uniformities that 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, are true by empirical evidence. But a distinction may draw 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 explains the stated relation between the variables, that is, it brings out the logical basis of the generalization. Economic theory or a model derives a generalization through the process of logical reasoning and explains the conditions under which the stated generalization will hold.
The 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 them in the dearest market.
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 that may not correspond to facts, but very near facts which may use as the 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.
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 collecting first, arrange and conclusions are drawn. Then these general conclusions are further verified concerning facts.
The inductive method is generally associating 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 the population in various countries; He then used statistics to support his theory. Similarly, Engel, the German statistician employed the inductive method and used statistics to formulate his law of consumption.
The Inductive method can apply in two distinct ways:
The experimental method, and. Statistical method.
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 make use of or blended to achieve the required objective. The two methods, deductive and inductive, are not competitive, but complementary helping the investigator. Explain are Economics is a Science and Art?
Just, like any other matter, the issue, whether the deductive method is to refer to the 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 an inductive method. The controversy over methodology went on until Alfred Marshall brought about a compromise.
EC346: Research Methods in Economics
Principal Aims
This is a final year research project which requires students to apply their knowledge of economics to a chosen area.
Principal Learning Outcomes
Subject knowledge and understanding: (i) understand how economists approach questions, in particular, how they construct hypotheses and use data to discriminate between alternate explanations for events or patterns.
Independent research skills: students will develop organisation and time management skills required to produce their own research analysis
Written communication skills: students will develop skills in writing on a specialised economics subject, clearly communicating technical economics material succinctly
Oral communication skills: students will have an opportunity to present their research to a tutor and other students
Syllabus
The module will typically cover the following topics: research methods; guidance on choosing a topic, developing a research question, searching the literature, guide to economic data sources, overview of useful techniques for applied economic analysis.
Context
Pre or Co-requisites Modules: EC204-30 and (EC203-30 or EC226-30)
Assessment