by ohthatpatrick Sun Nov 11, 2012 12:04 am
I think we might predict or be intuitively drawn to this answer if, when we read the passage, we saw it as a fundamental debate between two schools of thought:
neoclassical economics
&
steady-state economics
You might be thinking to yourself, "OF COURSE I knew it was neoclassical vs. steady state."
It's not enough, of course, to just know that these are the names of the opposing sides. We gotta figure out a simple, easy way of remembering what the difference is between them.
Here's what I probably would have retained/reinforced/remembered after my first read:
neoclassical = no external limits on an economy (line 7) ... perpetual growth is the solution to economic problems
vs.
steady-state = nature sets an external limit to an economy ... perpetual growth would be unsustainable and would turn into an economic problem
So when Q19 asks me what steady-state thought was a noneconomic constraint, I would reread line 7 to understand the context ... "Oh, right. Neoclassicists think that the economy is a closed system with no external constraints. Steady-staters thought there WAS an external (noneconomic) constraint: nature."
So I would want the answer choice to reinforce nature's finite budget of resources.
And, scanning for that, naturally, I would find (C).
I got the impression from the tone of your question that you thought this detail was a "needle in a haystack" detail, i.e. really obscure and not important to the big picture.
But this actually is the big picture. This is the fundamental way that steady-state differs from neoclassical.
I think this question is hard mainly because the wording of the question stem doesn't make it obvious that they're asking, "What's the difference between steady-state and neoclassical?"
We have to see that 'constraint' in line 7 refers to the big picture question of "Is an economy unlimited, as the neoclassicists believe, or limited, as the steady-staters believe."
Hope this helps.