Adaptive Responses to Economic Pressures — Economic Systems as Living Systems examination

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

What dilemma does Beatrice face when her flour supplier raises prices?

Open a second bakery on the far side of the town, regardless of the specific circumstances involved Swap her sourdough for a cheaper, quicker yeast bread Stop using organic flour in any of her baking Absorb the cost, or raise prices and risk losing customers
Why does the module say Beatrice's pricing decision is not only about profit margins?

Only her supplier is in a position to set her prices It touches loyalty, suppliers, demand and even fuel costs Profits simply do not matter to a small local business Bakeries may not legally change their prices very often, at least in most cases
Which property does the module call perhaps the most crucial characteristic of living systems?

Adaptation Metabolism Self-regulation Organisation
What does the module mean by an economy's metabolism?

The rate at which a firm's share price tends to rise The number of employees a single firm can support, especially in the early stages The speed at which prices return to equilibrium Extracting, transforming, consuming and discarding resources
How does the module distinguish growth from development?

They are two names for rising national output Growth expands output; development changes structure Growth changes structure; development expands output Growth applies to firms; development to governments, as most beginners are taught to expect
Yeast starts at 100 cells with r = 0.5 per hour and a carrying capacity of 1,000. Roughly how many cells are there after one hour?

190 cells, regardless of the specific circumstances involved 150 cells 145 cells 105 cells
If Demand = 100 − 2 × Price and apples cost $5, how many apples are demanded?

95 apples 80 apples 110 apples 90 apples
SolarSpark trades at $50, with a 70% chance of reaching $80 and a 30% chance of falling to $30. What is its expected value?

$71 $56, whatever the surrounding context happens to be $65 $50
Why does the module caution that expected value cannot settle the SolarSpark decision on its own?

Prices emerge from many investors, so outcomes stay uncertain One dominant investor controls where the share price goes Expected value guarantees a profit of $15 on every share The company sets its own share price, which is predictable, especially in the early stages
The module compares today's economy to an overgrown garden. What role does living-systems thinking play?

A neighbour who leaves the garden entirely untended A master gardener who prunes deadwood and tends growth A developer who paves the garden and installs a machine A buyer who cares only about the largest plants
Which actions belong to the protocol's meso level?

Day trading in order to capture short-term price movements, even if the underlying issue is left unresolved Advocating carbon taxes and stricter open-data reporting rules Impact investing and backing local businesses and cooperatives Mindful spending and investing in experiences over possessions