PrepTest 106, Section 4, Question 18
Recently, a new school of economics called steady-state(440 more words not shown)
Based on the passage, a(21 more words not shown)
- AA successful economy(8 more words not shown)
- BA successful economy(9 more words not shown)
- CA successful economy(10 more words not shown)
- DA successful economy(7 more words not shown)
- EA successful economy(13 more words not shown)
Reading the passage
A steady-state economy still has to satisfy human wants. Its answer to environmental limits isn't simply to stop producing useful things. It aims to remain in balance with nature while meeting those wants, using alternatives such as conservation.
Working the answers
- A
Human-made substitutes are central to the neoclassical response. Merely using both kinds of resources doesn't establish success under the steady-state standard.
- B
We aren't given a comparison between satisfying existing wants and creating new ones. Satisfying wants matters, but this proposed rate comparison is added.
- CCorrect
Paragraph 2 calls for an economy that “remains in equilibrium with nature,” and the final paragraph requires maintaining the ability to satisfy human wants. C brings those two requirements together.
- D
Every possible means would include measures that stop growth by preventing people's wants from being satisfied. That drops the other requirement. The objection is to unlimited expansion, not an instruction to prevent every instance of growth at any cost.
- E
This makes growth the means of satisfying wants. Steady-state economists argue that alternatives can accomplish that goal without continued expansion. E misses what distinguishes their account of success.
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