PrepTest 106, Section 4, Question 14
Recently, a new school of economics called steady-state(440 more words not shown)
Which one of the following(11 more words not shown)
- ANeoclassical economists, who,(40 more words not shown)
- BSome neoclassical economists,(36 more words not shown)
- CSome steady-state economists,(34 more words not shown)
- DSome steady-state economists,(41 more words not shown)
- ESteady-state and neoclassical(39 more words not shown)
Reading the passage
We've already predicted the main point: steady-state economists challenge unlimited growth and offer other ways to satisfy human wants. Nature supplies the resources and absorbs the waste, so its limits matter. Conservation is their proposed way to meet people's needs without continually using more.
What we’re looking for
Look for that challenge and response. An accurate description of the neoclassical position alone won't capture the discussion's point.
Working the answers
- A
This accurately describes the neoclassical view of nature and substitutes. But it leaves out the steady-state challenge and the alternative developed in the final paragraph.
- B
Some neoclassical economists do argue that further growth supplies capital to address problems. That's a view introduced in paragraph 1, not the central point about the new school's challenge.
- C
The conservation language is promising, but “even if” it leads to stagnation changes the position. Steady-state economists respond to that objection by saying alternatives can still satisfy human wants. They aren't simply accepting the alleged cost.
- DCorrect
This combines the natural limits with the proposed alternative: conservation can allow wants to be satisfied without continued growth. The ending explicitly makes success depend on implementing alternatives “without sacrificing” that ability. That's the important difference from C.
- E
The schools don't share a goal of guaranteeing unimpeded increases. Steady-state economists challenge that commitment. A steady state isn't a steady increase.
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