PrepTest 106, Section 4, Question 15
Recently, a new school of economics called steady-state(440 more words not shown)
Based on the passage, neoclassical(16 more words not shown)
- AThe environment's ability(6 more words not shown)
- BNatural resources are(5 more words not shown)
- CThe concept of(5 more words not shown)
- DWestern economies have(4 more words not shown)
- EEconomies have certain(2 more words not shown)
Reading the passage
The wording is tangled: we're looking for the one belief neoclassical economists wouldn't reject. Keep their position straight. They defend unlimited growth, and if a natural resource runs out, they think human-made resources can replace it.
What we’re looking for
Check each belief against that position rather than treating every mention of a natural limit as an automatic disagreement.
Working the answers
- ACorrect
They can accept that nature's supply is limited. Their proposed response is replacement: natural resources, “if depleted,” can be replaced by human-made ones. A finite supply of natural materials doesn't limit growth in their model because they believe substitutes can keep it going.
- B
They reject nature as an outside constraint. Paragraph 2 expressly says they treat nature as an economic component, not an external limit.
- C
They defend unlimited growth rather than treating the concept as dangerous. That warning belongs to the steady-state view, so it isn't the exception.
- D
Their view doesn't recognize the natural ceiling on which the claim of having exceeded an optimal size depends. This is the steady-state criticism they would reject.
- E
For the same reason, they don't accept a naturally determined optimal size beyond which growth becomes too costly. Their model allows growth to continue without that limit.
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