1.According to the author, what causes balance in the Economics of Nature?
The flow of water, animal activity, floods, evaporation and transpirationof plants and animals, control and maintenance of water vapor in the atmosphere.
2. What is the definition of economics, given in the article? Is itdifferent to the definition given in class? How?
Economy (oikos, house, and nomos, rule) means literally the rule of conduct of a home. By extension itdenotes the art of correctly managing one's goods and, in a limited sense, of managing one's goods by avoiding useless expenses or by effectingsavings.
3. What is the economic machine?
Classic models consider the economic machine to be a closed system even though it is a system open to theenvironment and not beyond or above the rules of energy.
4. What is recession?
Recession is characterized by the slowing down of the flow of money inrelation to the flow of energy. (In terms of the preceding example, the inner wheel is braked and helps to slow down the outer one.) When the monetarysupply diminishes (analogous to reducing the number of bearings), exchange becomes more difficult; friction increases and the "viscosity" of the market israised
5. What is the role of prices in the economic machine?
Price is the expression of this value of exchange; it is a "value meter" of distinctlypractical use, since it constitutes an item of information that, while artificial, is essential in the functioning and regulation of the economic machine
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