what are the five steps of economic analysis?

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Answer : Economic analysis means to provide information about how market operate and provide future market behaviour in respect to event, trend and cycle. It is step to solve problems of distribution of scarce resources.

Step1 : Observation : First step is observe all resources available in an economy. Scare resources should properly observed and check the utilisation of the resources in best possible manner.

Step 2 : Problem definition : Problem should properly study and reason for occurring of the problem has been discussed in detail. Problem should properly identify with allocation of resources in best possible manner.

Step 3: Formulation of hypothesis : Hypothesis has been created by using different economic model. It has helpful in application of economic model in hypothetical situation.

Step 4 : Experimentation : Proper analysis of the experiment of the model and resources should allocated in systematic and logical manner.

Step 5 : Verification : It means that the model which has been applied in the market provide logical result. Resources should properly utilised in best possible manner as hypothesis. Market is able to produce efficient result.

Rahul Sunny answered 1 year ago

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