An economic hypothesis:

Question

Quizplus · Accepted Answer

Economic hypotheses can be tested using empirical analysis, which involves collecting and analyzing data to assess the validity of the hypothesis. Normative analysis, on the other hand, involves making value judgments about what should be done, rather than testing hypotheses about what is. Therefore, choice B is incorrect. Similarly, economic hypotheses are positive statements that describe what is, rather than what should be, so choice D is incorrect. While some economic hypotheses may be normative in nature, as they may relate to policies or ethical considerations, not all hypotheses are normative. Therefore, choice C is incorrect. Finally, while some economic hypotheses may be difficult to test due to data limitations or other challenges, the nature of the hypothesis itself does not determine whether it can be tested empirically. Therefore, choice E is incorrect.

An Economic Hypothesis