A systematic approach to determining the optimum use of scarce resources, which includes comparison of two or more options in achieving a specific purpose, lie under the assumptions and constraints. Economic analysis takes into consideration the fundamental costs of resources in account and attempts to measure personal and social costs and the benefit of the community or the economy in monetary terms. 

The key assumptions of economics analysis are given below:

(i) On the Basis of Dependence
(a) Partial Analysis : When economic analysis is done while considering a single factor, it is called Partial Analysis. For example, the study of demand, in relation to commodity price.
(b) General Analysis : When economic analysis is done considering multiple factors, it is called General Analysis. For example, the demand of commodity in relation to its prices as well as other factors.

(ii) On the Basis of Time Element
(a) Static Analysis : When economic analysis is done on the basis of particular point of time, it is called Static Analysis.
(b) Comparative Analysis : When economic analysis is done on the basis of two points of time, it is called Comparative Analysis.
(c) Dynamic Analysis : When economic analysis is done on the basis of changes in equilibrium of services, it is called Dynamic Analysis.

(iii) On the Basis of Tools and Direction
(a) Deductive Method : When economic analysis is done on the basis of general truth or the economic analysis of a specific individual unit.
(b) Inductive Method: When economic analysis is done on the basis of reasoning (logic). We proceed in this method from reasoning to a study of facts and verifications of conclusions arrived at. The process of logic is from general to particular.