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passage 3
P1
Recently, a new school of economics called steady-state economics has seriously challenged neoclassical economics, the reigning school in Western economic decision making. ███
Intro topic ·
Steady-state economics (new view) vs. neoclassical economics (traditional view)
Neoclassical view ·
Economy is closed system between producers and consumers
Growth is necessary and unlimited
P2
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Steady-state view ·
Economy is open system dependent on nature
Neoclassical view is wrong; not a closed system. Resources enter system, waste leaves.
Implications ·
of steady-state view
Growth is neither necessary nor unlimited. Economy has optimal size in theory. Too much growth is dangerous because it depletes resources and creates waste.
Neoclassical rebuttal ·
Natural resources can be replaced if depleted
P3
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problem ·
according to steady-state view
Western economies have exceeded optimal size
Solution ·
according to steady-state view
Meet human wants without growth, e.g. by using resources more efficiently
Passage Style
Critique or debate
15.
Based on the passage, neoclassical ██████████ █████ ██████ ████ ████ ████████████ ██████████ ███ █████ ██ ███████ ████ ██ ███ █████████ ███████
a
The environment's ability ██ █████ ███ ████████ ██ ████████
b
Natural resources are ██ ████████ ██████████ ██ ██████████
c
The concept of █████████ ████████ ██████ ██ ██████████
d
Western economies have ████████ █████ ███████ █████
e
Economies have certain ███████ ██████