What are induction and deduction, and which does economics use?
Question: Can you tell me what the difference is between inductive and deductive theories are? When an economist talks about the rise in interest rates is that inductive or deductive? Would a scientist who studies specific creatures on the ocean floor to have an understanding of ocean life be using inductive or deductive reasoning? Answer: Induction and deduction are different types of logical reasoning. Induction looks at specific facts and tries to derive general rules. Thus, it works from the specific to the general. Here is an example of induction: 1. This apple is red. 2. Another apple is red. 3. Still another apple is red. Therefore, all apples are red. Deduction takes one or more general rules, sometimes puts them together with specific facts, and tries to derive more specific facts. Thus, it works from the general to the specific. Here is an example of deduction: 1. All economists are popular. 2. Milton Friedman is an economist. Therefore, Milton Friedman is popular. Economics
