Answer
Key elements of the scientific method are:
*Observing outcomes and behaviours in the real world
* Creating a hypothesis based on these observations
* Testing the hypothesis
* Accepting or rejecting the hypothesis
Work Step by Step
There are economic theories and principals that predict the actions of individuals and firms. These principles contain generalizations and assumptions to make them more simplified, and can be expressed graphically. This is very similar to the scientific method of testing hypotheses.
