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Nursing sciences
Economic analysis essentially entails the evaluation of costs and benefits.It starts by ranking projects based on economic viability to
aid better allocation of resources.It aims at analysing the welfare impact of a project
It is also a process of driving economic principles from relevant economic facts.
Any economic analysis involves the formulation of laws and generalizations through two methods which includes the
1.Deductive method which can also be called the prior reasoning we start from unchallenged elementary or rudimentary assumptions then arrive at conclusions using logical analysis.
This method involves the following stages
1. Observation of a task or issue: in this stage
There must be an issue to be solved
2. Making the hypothesis: in this stage the problem to be solved is being stated and defined
3. Testing the hypothesis using more observations then when the hypothesis gets verified we get general economic principles.
The advantage of this method is that only simple deductive logic is required.
2.Then the Inductive Method: this type of reasoning flows from facts to theory it is also called the empirical method.
It derives economic generalizations on the basis of experimentation, observations and statistical methods.
In this method data is collected about a certain economic phenomenon the advantage of this method is that it is the most realistic and reliable method
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