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#85846
Complete Question Explanation

The correct answer choice is (C).

Answer choice (A):

Answer choice (B):

Answer choice (C): This is the correct answer choice.

Answer choice (D):

Answer choice (E):

This explanation is still in progress. Please post any questions below!
 Sophia123
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#37308
Hi!

I selected A for this question - I thought that total amount of human wants could be considered a noneconomic constraint because if human wants are extremely high, it could limit the view of steady state economists. However, in looking again at this question, I see how the steady-state economists argue that there are alternatives to satisfy wants of producers and consumers, so this isn't seen really as a constraint. Is this the correct reason for why A is the wrong answer?

Thank you in advance!

-Sophia
 Adam Tyson
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#37635
I think even the neoclassical economists would agree that human want is not an economic constraint, Sophia. A constraint is something that limits or impinges upon something else. Human want doesn't limit an economy, but rather places demands upon it and either stimulates growth or does not stimulate it. Also, since the satisfaction of those wants is, according to the passage, what is required of an economy, one could argue that human want is an economic factor rather than a non-economic factor. I'm no economist, but that's how I read the passage anyway.

What we are looking for here is something that the neoclassical crowd says does not impact an economy from outside (because it is a closed system) but which the steady-state gang says does. They would both agree that human want exists and is a factor of the economy. It's the issue of nature that they disagree about - its ability to supply resources and to absorb waste. Steady-staters say that nature is outside the economy and is a non-economic constraint, while neoclassicists say nature is something within the economy rather than an outside constraint.
 lathlee
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#44327
Hi. the fact that D) is not correct doesn't make sense considering answer choice D) is supported by two separate places in the text.

"the solutions to problems often associated with .....further growth creates." (L 9 -13)

also in (line 30-36) neoclassical economists .... can be replaced with other elements... allow the economy to continue with its process of unlimited growth.
 Shannon Parker
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#44399
lathlee wrote:Hi. the fact that D) is not correct doesn't make sense considering answer choice D) is supported by two separate places in the text.

"the solutions to problems often associated with .....further growth creates." (L 9 -13)

also in (line 30-36) neoclassical economists .... can be replaced with other elements... allow the economy to continue with its process of unlimited growth.
In those references the problems with economic growth are not viewed as noneconomic constraints. This can be deduced by the fact that these arguments are put forth by neoclassical economists that do not believe in noneconomic constraints.

Hope this clears it up.
Shannon
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#95651
Hello, I guessed the correct answer based off the MP of the reading, but I didn't know how to confirm/eliminate choices with the reading. Do you mind explaining why the other answer choices are wrong?

Neoclassical = closed system involving circular exchange of value between producers & consumers; no noneconomic constraints
 Adam Tyson
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#96042
You bet!

A has already been discussed in this thread - human wants are economic factor and are not a constraint. Human wants don't limit (constrain) the economy.

B is incorrect because that index is just a measurement of certain factors. We are looking for something that is outside the economy (noneconomic) that constrains (limits) the economy. Picking B would be like saying that a ruler limits the size of a piece of wood you are measuring.

D describes economic problems, but we are supposed to be picking something that is noneconomic.

E is like D, describing something economic, when we are supposed to select a noneconomic contraint.

Focus on what the question asked for - a noneconomic constraint as seen by steady-state economists. Prephrase it - what is the thing that the steady-state folks say is outside the economy and which limits that economy? The answer is "nature’s limited capacity to regenerate raw material and absorb waste." Once you have that prephrase in mind, selecting the right answer should be easy. Do that research first, before going to the answer choices, and you won't have any trouble seeing the problems with the wrong answers, because none of them sounds anything like that prephrase!

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