Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 1 - Limits, Alternatives, and Choices - Questions: 4

Answer

The scientific method consists of several steps that regulate how research is done and hypotheses are formed. The scientific method begins with (1) observation; observing the real world and it's behaviors and outcomes. Then, there is (2) forming a hypothesis based on the previous outcomes. From there you must (3) test your hypothesis by comparing outcomes from research to the predicted outcome. Based on the outcomes and if they match your hypothesis you then (4) accept, reject, or modify your original hypothesis. Once these steps are done you are left with (5) continuing to test your hypothesis; if you receive favorable results the hypothesis then becomes a theory. This relates to economic policy and economics as a whole because this process is used to determine economic laws or principles. Once economic theories are widely tested and widely approved they become said laws or principles which are then worked into models. These models are simplified versions of how something works.

Work Step by Step

1) Observation - Observing the real world and recording the results 2) Form a hypothesis - Based on your results, form a hypothesis about what would happen in a specific event 3) Test your hypothesis - Take your hypothesis and test it in said specific event. Compare the outcome to your prediction. 4) Accept, Reject, and Modify - Take original hypothesis and compare to outcome. If it matches accept the hypothesis, if it does not reject the hypothesis. Either way you can modify your hypothesis 5) Continue - Continue to test your hypothesis, if it receives favorable results then it becomes a theory.
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