Complexity Science and Economic Networks — Living Systems Economics examination

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

What was Philip Anderson's argument in 'More is different'?

New properties emerge at each level that cannot be reduced to the level below Physics, in principle, can fully explain everything that happens in economics Complex systems can always be predicted from their smallest components Larger systems are always more efficient than smaller ones of the same kind, in the majority of common situations
Why, according to the module, did equilibrium models fail to predict crises such as 2008?

Economists had not yet adopted mathematical models, at least according to popular belief What mattered emerged from interactions between agents The models lacked data on individual preferences Financial crises are purely random and unpredictable
How does complexity economics model economies?

As a closed machine resting in equilibrium As a fixed matrix of industry outputs As a single, perfectly representative rational agent As adaptive systems of diverse, learning agents
What drives economic clusters such as Silicon Valley or Bordeaux, in complexity terms?

Central government planning Positive feedback loops Low taxes and subsidies Random chance alone
What development policy follows from treating vitality as an emergent property of networks?

Reduce the number of small and medium enterprises Cultivate relational density rather than chase individual firms Concentrate all investment in one flagship industry, without addressing what is actually driving the pattern Offer larger tax incentives to attract big employers
How does the module frame economic inequality from a complexity perspective?

As a necessary precondition for continued innovation As a purely moral issue with no systemic consequences As irrelevant to how resilient an economy turns out to be, at least according to popular belief As systemic risk, since concentrated networks are fragile
What common thread links the Irish Potato Famine, the 2008 crisis and Rust Belt decline?

Each was caused by over-regulation Each came from too many local ties Each was a monoculture catastrophe Each was a planned policy experiment
What network architecture does the module describe as the sweet spot?

Maximum connectivity between every node A single hub linking every other node Dense local networks loosely linked together Minimal connections so as to prevent any contagion
According to the module, what is the highest-leverage economic investment?

Fertiliser rather than the health of the soil, particularly when the pressure is highest Policing in preference to building social trust Corporate tax cuts that attract mobile capital The substrate: education, infrastructure, trust, ecology
In Youngstown, what did the community mapping project reveal?

The city was network-poor, not resource-poor Only a big employer could revive the city Most residents were unwilling to volunteer their time The city had few useful skills remaining
A regional official shifts their role from 'business attraction' to 'ecosystem cultivation'. Which question from the module are they now asking?

How do we cultivate the conditions from which vitality emerges? How do we outbid neighbouring regions for a major new firm? How do we allocate scarce resources as efficiently as possible?, which is how it is often framed by default How do we maximise measured output within this financial year?