Question : Which of the following statement is incorrect?
Option 1: Microeconomics is primarily concerned with the problem of what, how, and when to produce.
Option 2: Microeconomics is primarily concerned with the economic behavior of individual decision-making units when at equilibrium.
Option 3: Microeconomics is primarily concerned with the time, path, and process by which one equilibrium position evolves into another
Option 4: Microeconomics is primarily concerned with comparative statics rather than dynamics.
Correct Answer: Microeconomics is primarily concerned with the time, path, and process by which one equilibrium position evolves into another
Solution : The incorrect statement is (C) Microeconomics is primarily concerned with the time, path, and process by which one equilibrium position evolves into another.
Microeconomics is not primarily concerned with the time, path, and process of how one equilibrium position evolves into another. It focuses on the economic behavior of individual decision-making units (such as households and firms) and the allocation of resources in specific markets. The study of the time, path, and process of equilibrium adjustments falls more within the realm of macroeconomics.
Question : An object is in static equilibrium when it is ______.
Option 1: at rest
Option 2: moving in a circular path
Option 3: moving with uniform velocity
Option 4: acceleration at high speed
Question : Consumer equilibrium is the point at which_________
Option 1: MU < Price
Option 2: MU = Price
Option 3: MU > Price
Option 4: None of the above
Question : The market equilibrium for a commodity is determined by:
Option 1: the market supply of the commodity.
Option 2: the balancing of the force of demand and supply for the commodity.
Option 3: the intervention of the government.
Option 4: market demand of the commodity.
Question : If a consumer is in equilibrium, the consumer's marginal rate of substitution (MRS) must be equal to:
Option 1: The price of X.
Option 2: The price of Y.
Option 3: The ratio of marginal utilities.
Option 4: The ratio of prices.
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