Microeconomics (2066Q1): Distinguish between inductive and deductive methods in economics. Which method, in your opinion, is more appropriate in microeconomics? Why?

The inductive and deductive methods in economics are two methods for deriving economic generalizations and economic analysis.

SN	Inductive Method	SN	Deductive Method
1	It is also called empirical method.	1	It is also called analytical, abstract or prior method.
2	It is adopted by Historical school of economists.	2	It is adopted by classical and neo-classical school of economists.
3	Data collected from a certain economic phenomenon. Then arranged systematically and general conclusions are drawn from them.	3	Conclusions are derived from general truths and few general principles.
4	This method includes steps: a.       Observation b.      Formation of hypothesis c.       Generalization d.      Verification	4	This method includes steps: a.       Perception on problem b.      Defining terms c.       Deducing hypothesis from assumptions d.      Hypothesis testing
5	Eg: In a survey, out of 100 persons, 90 persons use shampoo for washing hair while 10 persons use soaps. Then it concludes people like to use shampoo for washing hair.	5	Eg: If we assume that people are entirely motivated by self interest. Then we proceed from general to particular in order to have conclusion.

In my opinion, deductive method is better in microeconomics because it consists strong theoretical background to support the method which can assure it's reliability and correctness.