Methods of Economics

Deductive Method:

It is from generalized statement to a conclusion. Example: Man is mortal is a generalized statement.
A. John is a man. Through deductive method we can conclude that A. John will die.

Inductive Method:

It is from a specific statement to generalization. Example: A. John died. A. Doe died. As A. John and A. Doe are human beings. Therefore, we can conclude through inductive method that man is mortal.