A hypothesis is:
A) an assumption about the behavior of economic agents.
B) a prediction of what will occur given certain assumptions.
C) a normative statement.
D) a forecast of future events.
E) useful only if assumptions are realistic.

Question

Quizplus · Accepted Answer

A hypothesis is a testable statement that predicts what will happen in a given situation based on certain assumptions. It is not an assumption itself, nor is it a normative statement. It is also not necessarily a forecast of future events, as it is only a prediction based on certain assumptions. The realism of the assumptions is important, but it does not determine the validity of the hypothesis.

A Hypothesis Is