In the context of economics, assumptions
A)are stated or unstated value judgments, definitions and interpretations made without supporting evidence.
B)are logical conclusions reached in the first step of economic analysis and used consistently from thereon.
C)must be based on the evidence at hand but do not need to be explicitly stated
D)are different for every person and thus have no role in unbiased policy analysis

Question

Quizplus · Accepted Answer

Assumptions are usually value judgments or interpretations made without supporting evidence. They are used as the starting point for economic analysis, but they are not based on empirical evidence. They are often unstated, but their influence can be seen in economic models and policy recommendations.

In the Context of Economics, Assumptions