That's why smaller monitors don't support high resolutions. You must establish the maximum resolution that you are comfortable with, given your applications. Too much flicker can tire you up fast and causes headaches. 70Hz is considered the start of what we call flicker-free. The higher the refresh rate, the better, so 75Hz is now considered the minimum and 85Hz ideal.
More colors require higher amounts of video RAM, which increases price.
Generally, the higher the resolution and, depending on the applications, the color depth, the better. I would prefer 1600x1200x75Hz, but it is too fuzzy, so I operate at 1280x1024x75. Components Monitor specs include the maximum horizontal and vertical frequencies, beyond which it will not operate. Graphics adapter makers publish supported screen and color resolutions and refresh rates. Unless the driver supports your desired combination with good performance, the card's potential per specs does not mean much.