What type of economy allows for qualitative development without requiring quantitative growth?

Enhance your knowledge for the ISSP-SA exam. Study with multiple choice questions, each with hints and explanations. Prepare thoroughly for your certification!

The correct response is based on the concept of a steady-state economy, which emphasizes maintaining a balance within ecological limits while focusing on qualitative rather than quantitative growth. This type of economy aims to sustain human welfare and ecological health without the necessity for continuous expansion measured by traditional economic indicators like Gross Domestic Product (GDP).

In a steady-state economy, growth in quality can manifest through improved standards of living, better quality of goods and services, and enhanced social outcomes, all while stabilizing resource use and environmental impact. This contrasts with more conventional economic models, which often prioritize continuous quantitative growth, leading to increased consumption and ecological degradation.

A command economy, characterized by centralized control and planning, does not inherently prioritize qualitative development over quantitative growth. Capitalist and market economies, on the other hand, typically drive growth through competition and profit motives, which usually results in a focus on quantitative measures of success. Thus, while they can incorporate elements of qualitative development, they do not fundamentally operate on the principle of achieving qualitative growth without requiring quantitative expansion.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy