Question 9
Tools of Economic AnalysisWhen a generalization is made based on observed facts, it is known as
- A.deductive reasoning
- B.inductive reasoning
- C.theoretical reasoning
- D.normative reasoning
Show the answer and explanation
Answer: B (inductive reasoning)
Explanation
Inductive reasoning moves from observed facts to a general rule; deductive reasoning starts from a general assumption and reasons down to particular cases.