Economic Systems as Interconnected Networks — Economic Systems as Living Systems examination

Eleven questions. Nine of eleven passes, and you can take it again as often as you like.

In the opening story, what does Beatrice's café mainly illustrate?

How economic systems work as interconnected living webs How a business thrives by relying on as few suppliers as possible How small cafés can beat large chains on price alone Why knowing regular customers by name slows down service
Why does the module say analysing individual transactions in isolation falls short?

Transactions are private and cannot be studied responsibly Only government policy truly shapes economic outcomes in the end Single transactions are too small to measure with any accuracy Like one cell in a body, it misses the dynamic whole
Which image of an economy does this module prefer?

A pyramid directed by one central authority A forest of interacting, adapting life A fixed photograph of supply meeting demand A precision machine of cogs and levers
Demand for a product rises, its price climbs, producers make more, and supply meets demand again. What kind of loop is this?

A positive loop that keeps amplifying the first change it meets A coupling failure that spreads disruption across the whole web A negative, balancing loop that holds the system near equilibrium An emergent crisis that arises with no identifiable cause at all
Which example does the module give of a positive feedback loop?

A household cutting its spending after a sudden fall in its income, under ordinary, everyday circumstances Musicians listening closely to one another so they can stay in tune Prices easing after vendors produce more of a product that was scarce Early adoption of a technology drawing investment that spreads it further
What does the module mean by coupling?

The pairing of every buyer with exactly one seller in a market The merger of two separate firms into one single company, based on outward appearances alone Linked parts, so a disruption in one ripples through the whole A long contract binding one supplier to a single retailer
How does the module describe antifragility?

Resisting every shock without changing in any way at all, regardless of scale Growing stronger from shocks, as a forest renews after fire Avoiding shocks by cutting ties with the wider system Breaking apart quickly so that resources can be reused
In the orchestra analogy, how does an economy differ from a traditional orchestra?

It has no conductor; order emerges from many actors acting locally It depends on one dominant player who sets the tempo for all It follows a written score that fixes every player's exact part It has several conductors who compete to control the music, regardless of the specific circumstances involved
Using dX/dt = rX(1 − X/K) with K = 500, r = 0.2 and X = 100, how fast is the rabbit population growing?

80 rabbits per year 16 rabbits per year 100 rabbits per year 20 rabbits per year
In the logistic equation, what happens to growth as the population approaches its carrying capacity?

The population collapses to zero almost straight away Growth holds steady at the intrinsic rate r throughout Growth speeds up because there are more individuals breeding Growth slows towards zero and the population settles
In the bathtub picture of an economy, what does the water level represent?

The number of purchases made in a year The interest rate set by the central bank The stock of money currently circulating The rate at which money is being spent