AP Economics - Micro

Introduction to Types of Reasoning

Chaos - Randomness - Uncertainty: All the same thing

• Laws can define chaos. They give us order and explanations.
• The way to deal with uncertainty is probability (somewhere between 0% to 100%).

Types of Reasoning

1. Deductive/Deduction

   1. Is it fair to say if you act one way, this is how you will act for the rest on the time?

      One case, One Moment –prediction–> Many cases, Many moments

   2. Accuracy is low, Possibility of Error is high.

   3. People use deductive reasoning for fear.

      If you get bit by a small dog once, you may be scarred for life by dogs.

2. Inductive/Induction

   1. A group of people acting one way, can act the same way a different day.

      Many cases, Many moments –> Many moments, Many cases

   2. Accuracy is high, Possibility of Error is low.

3. Abductive

   1. Many cases, Many moments from the past explain the present <– One moment now –> Many cases, Many moments in the future

      Such as a review of a past court case or imprisonment that was wrongfully convicted.