PrepTest 106, Section 4, Question 21
Recently, a new school of economics called steady-state(440 more words not shown)
The passage suggests which one(6 more words not shown)
- AThey assume that(5 more words not shown)
- BThey assume that(5 more words not shown)
- CThey assume that(9 more words not shown)
- DThey assume that(8 more words not shown)
- EThey assume that(7 more words not shown)
Reading the passage
Neoclassical economists say depleted natural resources can be replaced with human-made ones, allowing unlimited growth. What does that require? Follow the substitution claim rather than assuming their commitment to growth means they deny that natural materials can run out.
Working the answers
- A
They explicitly allow depletion. Their answer is to replace natural resources, not to claim that nature supplies them infinitely.
- BCorrect
If human-made replacements also ran into an ultimate supply limit, they wouldn't sustain the unlimited growth described in paragraph 2. The model therefore assumes that those replacements will remain available as needed. That's the implication of invoking them to remove the natural constraint.
This doesn't mean every particular manufactured resource already exists in an infinite quantity. It concerns the assumed continuing availability of human-made resources in the model.
- C
An upper limit from resource availability is the steady-state position. Neoclassical economists invoke replacements precisely to avoid that limit.
- D
We aren't told that they regard efficient management as necessary to growth. The conservation discussion belongs to the steady-state response.
- E
A resource can serve as a replacement without being preferable. The text says human-made resources can keep growth going if natural ones are depleted, not that they are better.
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