Scientific theory – use and
limitation
In economic, there are lots of
issues or problems. Every theory will be developed for some critical issue or
problems and try to bring some outcomes from them. May be, these outcomes are
for single or multiple use. These theories predict the future events or
solutions for any problems. But every theory has some use and also has some
limitations.
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| Scientific theory – use and limitation |
Use of theories –
ü
These
theories provides economic tools to
short out the particular problems or multiple problems
ü
These
theories are able to explain every
economic factor or issue or phenomena. Always choose the relevant factor
for this.
ü
These
theories provide us a base on which predicts
the relevant economic events. It also helps to find out the economic issue
or problems in current time frame.
ü
These
theories also help us to judge the
economic performance and also find out the faulty factor.
ü
These
theories also help us to understand the economy and its relations with
different – 2 factor or issue or problems. It also helps us to form future policies and coordination
between different policies.
Limitation of theories –
ü
Economy
do not have accurate data to make a
better theory or policy
ü
Nobody
or any theory will not be able to predict
to future event or issue accurately
ü
Human being live in society so that all its behaviour is not rational
ü
Every
theory will be developed on the basic of assumptions but these assumptions is not real
ü
These
theories did not applicable in all
situations. Every theory will be formed for different issue or problems
because situations will not be remain same for whole times.
