#19 - Specific Reference, Must be True, Subject Perspective

[Administrator]

Complete Question Explanation

The correct answer choice is (C).

Answer choice (A):

Answer choice (B):

Answer choice (C): This is the correct answer choice.

Answer choice (D):

Answer choice (E):

This explanation is still in progress. Please post any questions below!

[Sophia123]

Hi!

I selected A for this question - I thought that total amount of human wants could be considered a noneconomic constraint because if human wants are extremely high, it could limit the view of steady state economists. However, in looking again at this question, I see how the steady-state economists argue that there are alternatives to satisfy wants of producers and consumers, so this isn't seen really as a constraint. Is this the correct reason for why A is the wrong answer?

Thank you in advance!

-Sophia

[Adam Tyson]

I think even the neoclassical economists would agree that human want is not an economic constraint, Sophia. A constraint is something that limits or impinges upon something else. Human want doesn't limit an economy, but rather places demands upon it and either stimulates growth or does not stimulate it. Also, since the satisfaction of those wants is, according to the passage, what is required of an economy, one could argue that human want is an economic factor rather than a non-economic factor. I'm no economist, but that's how I read the passage anyway.

What we are looking for here is something that the neoclassical crowd says does not impact an economy from outside (because it is a closed system) but which the steady-state gang says does. They would both agree that human want exists and is a factor of the economy. It's the issue of nature that they disagree about - its ability to supply resources and to absorb waste. Steady-staters say that nature is outside the economy and is a non-economic constraint, while neoclassicists say nature is something within the economy rather than an outside constraint.

[lathlee]

Hi. the fact that D) is not correct doesn't make sense considering answer choice D) is supported by two separate places in the text.

"the solutions to problems often associated with .....further growth creates." (L 9 -13)

also in (line 30-36) neoclassical economists .... can be replaced with other elements... allow the economy to continue with its process of unlimited growth.

[Shannon Parker]

Hi. the fact that D) is not correct doesn't make sense considering answer choice D) is supported by two separate places in the text.

"the solutions to problems often associated with .....further growth creates." (L 9 -13)

also in (line 30-36) neoclassical economists .... can be replaced with other elements... allow the economy to continue with its process of unlimited growth.

In those references the problems with economic growth are not viewed as noneconomic constraints. This can be deduced by the fact that these arguments are put forth by neoclassical economists that do not believe in noneconomic constraints.

Hope this clears it up.
Shannon

[lsatquestions]

Hello, I guessed the correct answer based off the MP of the reading, but I didn't know how to confirm/eliminate choices with the reading. Do you mind explaining why the other answer choices are wrong?

Neoclassical = closed system involving circular exchange of value between producers & consumers; no noneconomic constraints

[Adam Tyson]

You bet!

A has already been discussed in this thread - human wants are economic factor and are not a constraint. Human wants don't limit (constrain) the economy.

B is incorrect because that index is just a measurement of certain factors. We are looking for something that is outside the economy (noneconomic) that constrains (limits) the economy. Picking B would be like saying that a ruler limits the size of a piece of wood you are measuring.

D describes economic problems, but we are supposed to be picking something that is noneconomic.

E is like D, describing something economic, when we are supposed to select a noneconomic contraint.

Focus on what the question asked for - a noneconomic constraint as seen by steady-state economists. Prephrase it - what is the thing that the steady-state folks say is outside the economy and which limits that economy? The answer is "nature’s limited capacity to regenerate raw material and absorb waste." Once you have that prephrase in mind, selecting the right answer should be easy. Do that research first, before going to the answer choices, and you won't have any trouble seeing the problems with the wrong answers, because none of them sounds anything like that prephrase!

[jackieb]

I think even the neoclassical economists would agree that human want is not an economic constraint, Sophia. A constraint is something that limits or impinges upon something else. Human want doesn't limit an economy, but rather places demands upon it and either stimulates growth or does not stimulate it. Also, since the satisfaction of those wants is, according to the passage, what is required of an economy, one could argue that human want is an economic factor rather than a non-economic factor. I'm no economist, but that's how I read the passage anyway.

What we are looking for here is something that the neoclassical crowd says does not impact an economy from outside (because it is a closed system) but which the steady-state gang says does. They would both agree that human want exists and is a factor of the economy. It's the issue of nature that they disagree about - its ability to supply resources and to absorb waste. Steady-staters say that nature is outside the economy and is a non-economic constraint, while neoclassicists say nature is something within the economy rather than an outside constraint.

If I just think about the question in terms of what steady-state economists believe are non-economic constraints, then I understand the answer. However, they cite to line 7 which is within the context of neoclassical perspective and also, Adam says above that we want something that the neoclassical crowd says does not impact an economy from outside. I am confused how the neoclassical perspective works with this for two reasons. 1) I don't understand what Adam is saying about how we want something the neoclassical crowd says does not impact an economy from outside. Don't we want something the neoclassical crowd says WOULD impact an economy from outside ("nonecomonic restraint")? 2) The neoclassical perspective thinks nature is part of the economic cycle and not an outside constraint (lines 31-32). So although AC B works for steady-state, neoclassical would disagree with this.

[Jeff Wren]

Hi jackie,

While the question is citing the term "noneconomic constraints" from line 7, the question is asking for what the steady-state economists would consider an example of one of these noneconomic constraints. As you correctly note, the discussion in line 7 is from the point of view of the neoclassical economists rather than the steady-state economists. What this means is that the answer to this question will be found in a different part of the passage. Keep in mind that the answer to a specific reference question is often not found in the lines that are cited (that would be too easy). Instead, these questions often test the ability to make connections between ideas found in different parts of the passage.

The neoclassical economists don't believe in noneconomic constraints, so it wouldn't make sense to look for an answer that the neoclassical economists believe constrains the economy from the outside. As the passage states in that paragraph, "According to the neoclassical model ... no noneconomic constraints impinge on the economy" (lines 4-8).

The steady-state economists do believe in noneconomic constraints, and this disagreement is the main focus of the passage. You can think of this question as basically asking "What do the steady-state economists think is an example of a noneconomic constraints, which the neoclassical economists don't believe exist or at least don't constrain the economy?"

The answer to this question is actually found in the second paragraph, which discusses the views of the steady-state economists. They believe that "the economy is dependent on nature" (lines 15-16). In other words, they believe that nature, specifically "nature's limited capacity to regenerate raw material and absorb waste" (my emphasis)(lines 20-21) is an example of a noneconomic constraint on the economy, which directly supports Answer C.