Basic Economic Principles – Essay Example

The paper "Basic Economic Principles" is an outstanding example of an essay on macro and microeconomics. Scientific refers to required standards or required process, which is not just any kind of object or thing. Scientific methods relate to steps and measures, involving testing, observation, and evidence-based, and requires logic for its support (Kosso, 2011). According to Gauch (2003), scientific methodology refers to combinations of specialized techniques and principles involving geology, microbiology, Psychology, astronomy, and chemistry. Fundamentally, anything scientific relies on evidence of facts, the use of hypotheses, theories, and logical thinking. Scientific methods have some elements such as observation, testing of facts, data and information, verification of facts, data and information and generalization of facts data and information (Gauch, 2003). Observation involves the collection of information data or statistics. Testing of facts, data establishes independent variables of the causes and reasons for occurrence and the consequence of the effect. Verification of facts refers to the use of the same procedures and methods previously applied by other scholars to arrive at the same explanation of similar activities. Generalization involves an application of theories to more than one social setting. Economics refers to the study of how individuals choose to use their limited resources to satisfy their unlimited economic needs. The reason behind economics is that people must make choices involving trade-offs since the resources are scarce (O'Connor & Faille, 2000). An economic principle refers to the generalization that tends to be true to most people under certain assumptions. An economic principle explains various conditions involving economic behavior, and it solves problems that are economical, and the guides in formulating economic programmes (Fajardo & Abella, 1981).  Economics as a science, involves a systematic body of knowledge, using scientific methods to gather, analyze and make a conclusion of the data collected. Facts are obtained empirically through interviewing people as well as through personal observations, and data analyzed through careful study of cause and effect relationships, and out of the analysis, economic principles and theories are formulated (Fajardo & Abella, 1981). Scientific methods relate to economic principles and law because economics uses techniques that are scientific to gather facts and formulate laws. The law of demand is the most fundamental principle of economics, which stipulates that people tend to buy more quantity of goods when the prices of products are low, and when the cost of goods rise, people less the likely tend to purchase goods, provided other things like income remains constant. Economic principal theories, same as scientific methods are represented through the table’s graphs and mathematical equations after testing and puts into action through the formulation of economic policies. Economic principles and scientific methods both encounter challenges of biases on those who make data analysis, and conclusion regarding what is desirable and what is not desirable (Fajardo & Abella, 1981).