DISCUSSION: You don’t need to look at line seven. That’s just where the steady-state economists give the view mentioned in the question.
We need a reason something that steady-state economists think will prevent the economy from growing. It should be something outside the economy.
The wrong answers are all things within the economy. They are things that can result from growth or lack of growth, but they don’t cause lack of growth.
___________
- We’re never told what determines human wants. And human wants aren’t a constraint on the size of the economy. If anything, they help grow it by demanding more production.
- An index just measures growth. It can’t slow or grow the economy.
- CORRECT. See lines 19-22.
- This is vague. Are these problems of resources use, or some other problem, such an income inequality?
- Stagnation doesn’t cause the economy to stop growing – it’s what can happen when the economy stops growing.
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