Chapter 1.3, Problem 5R

To determine

To select: The statement that can be a hypothesis.

Answer to Problem 5R

(a)

Explanation of Solution

Explanation for correct option:

(a) Thisis a guess by economists and involves two variables i.e. a teenager will spend more on food than saving. Therefore, (a) is the correct option.

Explanation for incorrect option:

(b) This is a statement while hypothesis is a guess by the economists which is further tested for its validity. Therefore, (b) is an incorrect option.

(c) This is a guess by economists but involves only one variable while hypothesis involve two or more variables to test and validate later. Therefore, (c) is an incorrect option.

Economics Concept Introduction

Hypothesis is a guess that has been made by the economist. It is an assumption considering two or more variables that are tested for their validity.