What characterizes a steady-state economy?

A steady-state economy is characterized by a system in which the inflows and outflows of resources maintain a relative balance, allowing the economy to stabilize rather than continuously grow. This approach emphasizes sustainability, aiming to balance resource consumption and regeneration without depleting the available natural capital over time. The idea is to prevent the negative consequences of unchecked growth, such as environmental degradation and resource scarcity.

In this context, fluctuating inflows and outflows refer to the varying amounts of resources entering and leaving the economy, which can happen due to market demands or ecological factors. However, despite these fluctuations, the overall balance ensures that the economy does not exceed its ecological limits, thus maintaining a steady state.

Other options refer to different economic concepts. For instance, constant growth focuses on monetary expansion, which is not characteristic of a steady-state economy. Static population and resource levels imply no growth or change, which is more rigid than the dynamics of a steady-state system. Similarly, dependence solely on quantitative growth metrics overlooks qualitative aspects of sustainability and well-being, which are crucial in a steady-state perspective.