Economic+Methodology

Economic Methodology is the study of economics viewed through the scientific method. The scientific method has been observed and applied to economics using analysis, hypothesis, and application of. In essence economic methodology is a social science of economic background such that is relies on the scientific methods.

It consists of: - The observation of facts - A hypothesis with explanation of cause and effect based on the data - Proving true of false of the hypothesis through testing - Modification or change of the hypothesis based on those results - Continued testing of the hypothesis against factual data gathered through observation - Once results are favorable to the hypothesis evolves into a //theory// - Once the theory is tested multiple times and accepted throughout society is becomes a //law// or //principle//

This idea of methodology helps economists understand and explain real world situations and the various outcomes of each.

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The Scientific Method is used in Economic Methodology

QUESTION TO TEST YOUR KNOWLEDGE:

//Fill in the Blank:// A hypothesis evolves into a theory after it is proven, and a theory evolves into a ___________** **once it is tested multiple times and accepted throughout society.** (hint: there are two possible answers)


 * answer is listed below links

Economic methodology links:

-- [|Wikipedia]: explains what Economic Methodology is and gives references -- [|Paper on Economic Methodology]: this is a paper written by D. Wade Hands about the history of Economic Methodology and where it seems to be going in the future --[|European Integration of Economic Methodology]: this article is about how US economists are integrating Economic Methodology into the European economies -[|The Concise Guide to Economics]: an article by Jim Cox about Economic Methodology


 * answer: //law// or //principle//