JKSSB Written 2024
Answer & Explanation
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Correct Answer:
Option D —
When economists study a market's price, their main goal is to figure out why the price is what it is and how it might change
In economics, the primary goal of studying market prices is to understand the underlying mechanisms of supply and demand. Economists analyze how various factors—such as consumer preferences, production costs, and external shocks—determine the current price and predict how future shifts will cause that price to adjust.Why the other options are incorrect:
A is incorrect: Microeconomics focuses on individual actors (households and firms), while Macroeconomics is concerned with the overall economy.
B is incorrect: Individual markets are the focus of Microeconomics. Macroeconomics deals with aggregate variables like GDP, inflation, and unemployment.
C is incorrect: Governments frequently influence market prices through tools like taxes, subsidies, price ceilings (maximum prices), and price floors (minimum prices).
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.