A hypothesis in an economic model is a statement that may be either correct or incorrect about an economic variable. a. Tested b
efore it can be accepted (or not rejected).b. A statement that ma either current or incorrect about an economic variable.c. Usually about a causal relationship.d. All of the above—An economic variable is something measurable that can have different values. An economic hypothesis is usually about a causal relationship. Before accepting a hypothesis, we must test it.
The correct answer is option d. "All of the above".
Explanation:
A hypothesis is a proposed explanation, based on the evidence that is at hand, for a set of observations and looking for further investigations. A hypothesis in an economic model works under the same premise that a hypothesis in a scientific investigation. The hypothesis may be correct or incorrect, therefore it should be tested before it can accepted only if the results show that the hypothesis explains all the obtained explanations. Regarding economic model hypothesis, usually they deal with causal relationships between an observed phenomena and the origin of it.
