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.
