Self-study
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
17.
A steady-state economist would be █████ ██████ ██ ███████ █████ ███ ██ ███ █████████ ██ █ █████ ██ ███████ █ ████████████ ███████ ██████ ██████ ███████ ████████████ ███ ███████ ██ ███████ █████ ██████
a
a manufacturer's commitment ██ ███████ ███ ███████ █████████
This is an example of using conservation in manufacturing through recycling, so the steady-state economists would endorse this.
b
a manufacturer's decision ██ ███ █ ████ █████████ ████ ██ ███ ██████████ ███████
This scenario shows an improvement in cost efficiency, not conservation or a more efficient use of resources, so it does not align with the methods highlighted by the steady-state economists.
c
a manufacturer's implementation ██ █ ███████████████ ███████ ██ ██████ ███ ██████ ██ █████████ ████████
This is an example of conservation through reducing defective outputs, so the steady-state economists would endorse this.
d
a manufacturer's conversion ████ ███ ████ ██ ██████████ ███████ ██ ███████ ████ ███████ ████ ██████████
This is an example of improving resource management by using a more efficient fuel, so the steady-state economists would endorse this.
e
a manufacturer's reduction ██ ██████ ██ █████ ██ █████████ ██ ██████████████ ███████
This is an example of using conservation methods to reduce overproduction, so the steady-state economists would endorse this.