lathlee wrote:Hi. I was greatly confused by the question's meaning(What question is asking), I basically interpreted the question as state-economists are not wrong that Neoclassical economists would also agree with. I do not understand why b) is correct since it, b) says natural resources are an external constraint on economies which in an RC passage, steady-school economists see it as valuable resources that there is a limitation to regenerate raw material (Line 19-30). (which BTW the text doesn't really say steady state school believes external constrain) which Neoclassical school says nature can be simply replaceable resource always which according to neoclassical school, nature CANNOT be an external constraint (L 30-36)
Here we have a must be true, except question.
The best way to look at what this question is asking is what is not a steady state economist belief that neoclassical economists would believe to be wrong, or what is a belief of the steady state economists that neoclassical economists would agree with.
All of the incorrect answer choices will present beliefs of the steady state economists that the neoclassical economists will disagree with, while the correct answer choice will present a belief that both schools will agree with.
Here answer choice A is the correct answer because the passage states neoclassical economists also believe that the environment's ability to yield raw material is limited. See lines 34-35. "natural resources, if depleted, can be replaces with other elements--i.e., human made resources." Since the neoclassical economists agree, they would not hold the steady state economists to be wrong.
Hope this helps.
