An economic hypothesis
A) has the same meaning as an economic principle or economic law.
B) is usually a normative statement.
C) is a possible explanation of cause and effect.
D) is a stronger generalization than an economic law.

Question

Quizplus · Accepted Answer

An economic hypothesis is a possible explanation of cause and effect. It is a statement that suggests a relationship between two economic variables and proposes how one variable may affect the other. It is not the same as an economic principle or law, which are more established and widely accepted. A hypothesis can be either positive (descriptive) or normative (prescriptive), but it is not necessarily stronger than an economic law.

An Economic Hypothesis