Which of the following statements about testing an economic hypothesis is the most accurate?
A) It can be tested using empirical analysis.
B) It can be tested using normative analysis.
C) It cannot be tested since it is normative in nature.
D) It cannot be tested since it is a positive economic statement.

Question

Quizplus · Accepted Answer

Economic hypotheses can be tested using empirical analysis, which involves collecting and analyzing data to evaluate the validity of a hypothesis. Normative analysis, which involves making value judgments about the desirability of different economic outcomes, cannot be used to test hypotheses.

Which of the Following Statements About Testing an Economic Hypothesis