Markets as Living Systems — Living Systems Economics examination

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

What is the dominant metaphor for markets in classical and neoclassical economics, according to the module?

The ecosystem The river The machine The organism
Which set of properties does the module use to show markets are complex adaptive systems?

Central control, fixed outputs and a stable resting equilibrium Linear cause and effect producing reliably predictable results, even if the underlying issue is left unresolved Perfect information shared equally among all participating agents Decentralised coordination, adaptation, novelty, evolution and emergence
Why does the QWERTY keyboard persist, as the module explains?

Government regulations in most countries require its continued use No alternative layout has ever been proposed Path dependence: an ecosystem co-evolved around it It is the most efficient layout ever designed
What does Suzanne Simard's 'Wood Wide Web' illustrate in the module?

Forests are best understood and managed as timber reserves, at least according to conventional wisdom Fungi are parasites that gradually weaken healthy forests Trees compete as individuals with no exchange of any resources Fungal networks share resources so the forest acts as a superorganism
Why are coral reefs so productive despite occupying a tiny share of the ocean floor?

Absence of competition between the species A steady inflow of external nutrients Mechanical efficiency of each single species, based on outward appearances alone Relational density of symbiotic partnerships
According to Jane Jacobs, as the module presents her, what makes neighbourhoods economically vibrant?

Wide roads designed to move traffic through quickly, according to how most people initially approach it Great diversity of uses, building ages and activity per block Zoning that keeps residential and commercial uses apart A single large employer anchoring the local economy
What first lesson does the living-systems view add that the machine metaphor misses?

Resilience matters as much as efficiency Equilibrium is the natural resting state Efficiency is the only measure that counts Redundancy is always a form of waste
How does the module interpret the 2008 financial crisis?

A system optimised for efficiency at resilience's expense The result of too much regulation and redundancy A failure caused by holding excessive capital buffers A random event unrelated to the design of the system
In living systems economics, how are relationships understood?

As the source of value As friction to reduce at all costs As transaction costs As outside economics
What happened to the Atlantic cod fishery off Newfoundland, and what does it illustrate?

A lasting increase in cod stocks after new fishing technology arrived A regime shift showing that exceeding carrying capacity degrades the whole system A gentle price rise as supply fell, exactly as the textbooks had predicted, without addressing what is actually driving the pattern A rapid recovery once fishing was paused for a single season
A city planner wants to boost economic life. Based on this module, which approach fits best?

Clear out small businesses to simplify planning Increase the density and diversity of mixed uses Separate every function into its own tidy zone Attract one large firm to anchor the whole local area