Emergent Properties in Economic Organization — 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 Professor Elmwood's jar of settling marbles demonstrate?

That each marble follows a plan the professor set That one marble's path predicts the whole pattern, in nearly every case people describe An emergent pattern that no single marble contains That order always requires a central controller
How does the professor answer the student who asks whether we are all just marbles?

Individual choices give rise to markets and industries Individuals matter, but markets never arise from them People move at random and make no real choices at all Economies are designed from above by expert planners, regardless of the surrounding context
In the module's ecosystem picture of an economy, what role does information play?

The nutrients flowing through the system The organisms striving to survive and thrive The soil that stores the economy's wealth The nervous system, coordinating action
Rising interest rates cooling an overheating economy are an example of what?

An emergent bubble in asset markets A negative feedback loop acting as a brake Adaptive capacity within individual firms A positive loop that amplifies growth, even before any of the inner work has been done
What lesson does the module draw from a forest after a controlled burn?

Well-designed systems can learn from crises and grow stronger Forests and economies recover only if left entirely alone, even before any of the inner work has been done Every shock must be prevented, whatever the cost may be Destruction should be the main aim of any serious reform
How does the module describe regulations that protect resources and policies encouraging fair labour?

As obstacles that slow the natural growth of markets As emergent properties that nobody ever designed, according to how most people initially approach it As temporary fixes with no lasting role to play As checks and balances keeping the ecosystem healthy
With 10 rabbits, a carrying capacity of 100 and r = 0.2, how many rabbits does the logistic model give after one year?

12 rabbits 11.8 rabbits 11 rabbits 10.2 rabbits, as conventional wisdom often suggests
What does the equation ΔWealth = k × Wealth describe?

A negative loop pulling wealth to a set point Wealth being shared equally across a population A positive loop in which the rich get richer A fixed level of wealth that never changes
In ΔTemperature = k × (SetPoint − Temperature), what happens when the room is colder than the set point?

The change is zero, so nothing happens at all The change grows without any limit whatsoever The change is positive, so the room warms The change is negative, so the room cools further
Why might shifting more money towards StableFoods improve on an equal split?

An equal split always removes portfolio risk entirely It has the highest expected return of the three firms It removes any need to think about correlation Its steady returns cushion setbacks elsewhere
What does the "define your niche" step ask of you?

Know your role, as saver, investor or entrepreneur, to align with the flow Choose one single asset and disregard all of the others completely, regardless of the specific circumstances involved Copy the investment strategy of the largest firms in the market Withdraw from the financial ecosystem entirely to avoid its risks