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
21.
The passage suggests which one ██ ███ █████████ █████ ████████████ ███████████
a
They assume that ███████ █████████ ███ ██████████ ██████████
Anti-supported. Actually, the neoclassical economists
b
They assume that ██████████ █████████ ███ ██████████ ██████████
This is supported at the end of P2. The neoclassical economists think that human-made resources can support the economy towards
c
They assume that ████████████ ██ █████████ ██████ ██ █████ █████ ██ ███████
Anti-supported. The neoclassical economists think that natural resources can be
d
They assume that █████████ ██████████ ██ █████████ ██ █████████ ██ ███████
Unsupported. The passage does not mention efficient resource management in the context of the neoclassical economists’ view.
e
They assume that ██████████ █████████ ███ ██████████ ██ ███████ ██████████
Unsupported. We only know that the neoclassical economists believe that human resources can