Explanation
Scientific methods are characterized by observations made on the data by experimentations and deriving a relation or hypothesis from it to ensure its validity. The major components are observation of data by gathering data through primary or secondary sources, creating hypotheses or relations from the data observed, and testing the data derived to ensure the correctness of the hypothesis or ensuring its validity. Repeated tests ensure the validity of the inference made about the data to arrive at a particular hypothesis. Economists use scientific methods to ensure economic laws or economic principles for predicting the behavior of individuals.

Verified Answer
The essential components are observations from the data, creation of hypothesis, and testing the hypothesis to check the validity of the data. The laws of economics anticipate the behavior of institutions or individuals.