Feedback Loops in Production and Consumption — Economic Systems as Living Systems examination

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

What does buying a peach at the farmer's market reveal, according to the module?

A simple purchase sits in a web of sun, bees, farmer and buyer A single farmer controls every step of the supply chain Local produce is always cheaper than produce in the supermarket Consumers alone decide what every farmer chooses to grow
Which three layers does the module say lie beneath the visible exchange of money?

Humans, natural systems and social institutions Banks, national governments and multinational firms Land, labour and the manufactured goods they produce Supply, demand and the price that results from them
How are stocks related to flows in this module?

Stocks and flows describe unrelated parts of an economy, regardless of how much experience you already have Stocks are fixed quantities that no flow is ever able to alter Stocks accumulate past flows and change as flows enter and leave Flows are simply stocks measured at one particular moment
Turning down an oven that is running too hot is offered as an example of what?

An emergent property of many cooks at once Coupling between two separate kitchens, regardless of the specific circumstances involved A positive loop amplifying the rising heat A negative feedback loop restoring balance
How does the module interpret businesses pivoting to online sales and remote work during the pandemic?

As a temporary distortion that fully reversed afterwards As emergence: adaptation arising from the system, not a plan As central planning directed by national governments As proof that markets cannot adapt to a sudden shock, which is the assumption most people start with
What does the image of bone growing denser under weight-bearing exercise illustrate?

That stress always weakens a system as time goes on That strength comes from rigidity rather than adaptation That systems should be shielded from all forms of stress Antifragility: some systems grow stronger under stress
The body's sweating and shivering to hold its temperature is paralleled in economics by which mechanism?

Trade barriers that cut a national economy off from its neighbours, at least in the way it is usually presented Stabilising responses such as raising interest rates against inflation Speculative bubbles that keep feeding on their own rising prices Monopolies that fix their prices whatever demand happens to be
In the model dR/dt = rR(1 − R/K) × F, what does the F term add?

The rabbits' intrinsic rate of reproduction The death rate of the foxes that hunt the rabbits, especially in the early stages Interdependence: rabbit growth depends on food supply The fixed carrying capacity of the meadow itself
After a frost cuts the Arabica harvest and its price rises, what happens in Robusta Ridge?

Farmers plant more Robusta Farmers cut Robusta output to protect their own prices Robusta prices immediately double to match Arabica Farmers abandon Robusta and switch wholly to Arabica
How does the module describe the information vendors share at the market?

As a hidden cost that pushes up prices for shoppers As a vital nutrient that helps the system adapt As a secret each vendor must guard very closely As a distraction that slows down the trading day
Which three kinds of stock does the personal protocol ask you to identify?

Natural, manufactured and intellectual capital Cash, property and company shares Income, expenses and investments Financial, human and social capital