Hypotheses derived from economic analysis can be validated through empirical analysis, but hardly ever with absolute certainty.

Question

Quizplus · Accepted Answer

Economic hypotheses are typically based on assumptions and simplifying assumptions that allow for mathematical and theoretical analysis. Empirical analysis involves testing these hypotheses against real-world data. While empirical analysis can support or refute economic hypotheses, there is always some degree of uncertainty involved, as economic data can be complex and subject to various interpretations. Therefore, hypotheses derived from economic analysis can be validated through empirical analysis, but not with absolute certainty.

Hypotheses Derived from Economic Analysis Can Be Validated Through Empirical