Deductive Vs Inductive methods
* Deductive method is also known as analytical, abstract & a priori method. This method was advocated by the Classical school of Britain. Inductive method is also called empirical, historical & a posteriori method. Inductive method was was used by historical school of Germany.
* Deductive method proceeds from General to Particular . We start from a few indisputable facts about human nature and draw inferences from them about concrete individual cases. Inductive method proceeds from Particular to general . It is a process where facts are collected, arranged & general conclusions are drawn.
* The important steps in deductive method are 1. Selection of problem, 2.Formulating assumptions, 3.Formulating hypothesis & 4.Verifying hypothesis. The important steps in inductive method are 1.selection of problem, 2.Collection of data, 3.Observation & 4.Generalisation.
* Example for Deductive method: Law of DMU states that as the stock of a good increases the MU from it decreases. The principle of progressive taxation is derived from this law.
Example for Inductive method: From the practical experience of several farmers Law of Diminishing returns emerged.
