Disruptions and Interdependence in Economic Networks — 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 the subway delay caused by a third-rail fault illustrate?

Delays carry no real economic consequences at all Public transport is less reliable than private cars Passengers alone determine how well a system performs One malfunction can ripple through an entire network
Why does the module say economists struggle to build perfectly accurate models?

Markets change far too slowly to be measured well Economic actors always behave with perfect rationality Economists lack enough historical data to work from Economies are nonlinear, so small changes can cascade
A surge in demand for electric cars raises employment, and workers' spending fuels more activity. What is this?

An isolated event with no wider effects at all, under ordinary, everyday circumstances A positive feedback loop that amplifies growth A negative feedback loop that dampens activity A carrying-capacity limit on car production
How does the module characterise a sudden rise in oil prices?

Feedback that lifts costs and inflation and dampens spending The emergence of new cooperative networks among businesses Antifragility that immediately makes the economy stronger, even before any of the inner work has been done Feedback that encourages consumers to spend much more freely
What does the living-systems view offer that snapshots such as GDP do not?

A single number that replaces every other indicator Proof that economies are static and fully controllable A view of how economies evolve and adapt over time The exact timing of each coming recession in advance
A startup has 100 users and a market of 1 million. Why is its early growth almost exactly rX?

X is tiny next to K, so the brake term is close to one The carrying capacity of the market has already been reached Its intrinsic growth rate is effectively zero at this stage Logistic growth ignores the size of the current population
In SunSprout's pricing model P = a − bQ + cS, what does S represent?

The subsidy the government pays per panel The supply of silicon available to the firm The number of rival sellers in the market Sentiment: public opinion on solar energy
SunSprout sources from several suppliers and explores alternative materials. What does the module compare this to?

A single cell dividing again and again to grow fast A plant turning steadily towards the afternoon sun An organism developing redundant organs as a safety net A predator singling out the weakest prey in the herd, as long as the surface behaviour looks right
SunSprout spreads its investment across research, manufacturing, marketing and bonds. What is this likened to?

A herd migrating behind one single leader An organism's varied defences against disease A monoculture maximising the yield of one crop A machine running at its full rated efficiency
What kind of policy does the protocol recommend for policymakers?

Removing policy entirely so markets run unaided Policies that favour the largest firms for stability Fixed rules that never change once they are set Adaptive policies that evolve as conditions change
How does the Luminous Lens describe prosperity in this module?

A fixed pool of wealth to be shared out fairly A contest where one gain means another's loss A symphony, not a zero-sum game A mechanical output measured by GDP alone