[Solved] Which one of the following is NOT a basic principle of Micro (2024)

FAQs

Which of the following is not a focus of microeconomics? ›

Microeconomics does not use aggregate economic variables, such as the unemployment rate, GDP, and inflation rates. The aggregate economic variables are studied in macroeconomics.

Expert-Verified Answer. The item that is not typically studied under microeconomics is A. Economic output. Microeconomics focuses on the behavior and decision-making of individual agents, such as consumers, firms, and households.

Consumer behaviour, profit maximization, market mechanism all come under the study of microeconomics.

Answer and Explanation:

The central or fundamental questions of economics are: what to produce, how to produce, and for whom to produce. So, the effect of any addition or subtraction on the on-going situation is not a fundamental question.

The three primary microeconomics concepts include demand supply, incentives, and costs and benefits. Additionally, production, resource allocation, price, consumption, and scarcity are taken into consideration.

Unemployment is studied under Macroeconomics. Hence Option 4 is Correct. Microeconomics is the study of individuals and business decisions, while macroeconomics looks at the decisions of countries and governments.

In other words, microeconomics tries to understand human choices, decisions, and the allocation of resources. Having said that, microeconomics does not try to answer or explain what forces should take place in a market. Rather, it tries to explain what happens when there are changes in certain conditions.

Macroeconomic concepts include inflation, unemployment, economic growth, nation output, and so on, but it does not include studies related to a particular market, individual, or firm. Therefore, the correct option is C. How to maintain or improve the profits of a particular firm.

Price theory studies competitive equilibrium in markets to yield testable hypotheses that can be rejected. Price theory is not the same as microeconomics.

Microeconomics is the study of what is likely to happen—also known as tendencies—when individuals make choices in response to changes in incentives, prices, resources, or methods of production. Individual actors are often grouped into microeconomic subgroups, such as buyers, sellers, and business owners.

Which of the following is an example of microeconomics? ›

Here are some examples of microeconomics: How a local business decides to allocate their funds. How a city decides to spend a government surplus. The housing market of a particular city/neighborhood.

Microeconomics is the branch of economics that concerned with the study of individual units in the economy comprising of individuals and firms and help them maximize their utility and profitability respectively.

c. Where to produce? is not one of the primary economic questions. The basic economic questions ensure that scarce resources are used well.

Therefore, the the problem of 'When to produce? ' is not regarded as a central problem of the economy.

Free economy is not one of the three broad types of economic systems.

What is microeconomics? Focused on individual actions and behaviors, microeconomics determines how people, their families (and the businesses they lead) make decisions amid scarce resources or other constraints.

Macroeconomic concepts include inflation, unemployment, economic growth, nation output, and so on, but it does not include studies related to a particular market, individual, or firm. Therefore, the correct option is C. How to maintain or improve the profits of a particular firm.

In other words, microeconomics tries to understand human choices, decisions, and the allocation of resources. Having said that, microeconomics does not try to answer or explain what forces should take place in a market. Rather, it tries to explain what happens when there are changes in certain conditions.

The three main concepts are supply and demand, consumer behavior, and income levels. These concepts are the most studied to track microeconomic data.