Merits of Deduction are as follows:
1. It is a simple and easy method which is not time-consuming and expensive.
2. This method leads to accuracy and precision in generalization because it makes use of logic, and mathematical tools of analysis. If the premises are true, we can easily get a true conclusion.
3. In a social science, like economics, where there is limited scope for experimentation, this method becomes the only available method for the development of the subject.