10 Questions
What is the duration of the CBSE Class 11 Economics exam for the academic year 2023-24?
3 Hours
What is the marks distribution for the theory portion of CBSE Class 11 Economics Syllabus 2023-24?
80 Marks
When was the CBSE Syllabus for Class 11 Economics 2023-24 released?
Not specified in the text
Where can students download the CBSE Syllabus for Class 11 Economics 2023-24?
Directly from the provided page
What does the CBSE Class 11 Economics Syllabus primarily aim to provide?
An extensive range of concepts and an introduction to the subject
What is the primary objective of general equilibrium theory in economics?
To explain the interaction of supply, demand, and prices in a whole economy
How does general equilibrium theory differ from partial equilibrium theory?
Partial equilibrium theory considers the interaction of demand and supply in one market.
What are constant influences considered to be in general equilibrium theory?
Noneconomic factors beyond the scope of economic analysis
The prediction accuracy of an equilibrium model may depend on what?
The independence of economic factors from noneconomic ones
What does general equilibrium theory seek to determine regarding its own assumptions?
In which circumstances the assumptions of general equilibrium will hold
Study Notes
General Equilibrium Theory
- Attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets
- Seeks to prove that the interaction of demand and supply will result in an overall general equilibrium
Contrast with Partial Equilibrium Theory
- General equilibrium theory contrasts with partial equilibrium theory, which analyzes a specific part of an economy
- In partial equilibrium theory, other factors are held constant, whereas in general equilibrium theory, constant influences are considered noneconomic
Noneconomic Influences
- Constant influences are considered to be noneconomic, or beyond the scope of economic analysis
- Noneconomic influences may change given changes in economic factors
- Prediction accuracy of an equilibrium model may depend on the independence of economic factors from noneconomic ones
General Equilibrium Model
- Studies economies using the model of equilibrium pricing
- Seeks to determine in which circumstances the assumptions of general equilibrium will hold
Test your knowledge of general equilibrium theory in economics, which seeks to explain the behavior of supply, demand, and prices in a whole economy with several interacting markets. Contrast it with the theory of partial equilibrium and understand the constant influences considered in general equilibrium.
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