Concept:An economic hypothesis can be built from reasoning rather than data collection; this is linked to deductive reasoning.
Explanation:Deduction is the method that starts from general principles or assumptions and uses logic to arrive at a specific hypothesis.
It allows an economist to develop a hypothesis through intuition, insight, or logical thought before testing it with data.
For instance, from the general idea that higher prices reduce demand, a deduction gives the specific hypothesis that a rise in the price of a particular good will lower its demand.
Induction, however, moves from individual observations and facts to a general conclusion, so it relies on evidence rather than pure logic.
Policy economics and normative economics are concerned with policy recommendations and value judgments, not with logically developing a hypothesis.
Therefore, the description matches the deductive method.
Answer:Deduction (Option A).