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Chapter 4: Systems Thinking and Impact Analysis Quiz

Test your understanding of systems thinking, causal loop diagrams, feedback loops, and impact analysis.

1. What is a reinforcing feedback loop?

  1. A loop that stabilizes a system at a target value
  2. A loop where change in one direction creates more change in the same direction
  3. A loop that only operates during emergencies
  4. A loop that always leads to positive outcomes
Show Answer

The correct answer is B. A reinforcing feedback loop (also called positive feedback) is one where change in one direction creates more change in the same direction—growth leads to more growth, or decline leads to more decline. This can spiral upward or downward.

Concept Tested: Reinforcing Feedback Loops

See: Reinforcing Loops

2. What does a balancing feedback loop do in a system?

  1. It accelerates change exponentially
  2. It works to maintain a target or equilibrium by counteracting change
  3. It eliminates all variation in the system
  4. It creates unpredictable chaotic behavior
Show Answer

The correct answer is B. A balancing feedback loop (also called negative feedback) works to maintain a target or equilibrium. When the system moves away from the target, the loop pushes back, like a thermostat maintaining room temperature.

Concept Tested: Balancing Feedback Loops

See: Balancing Loops

3. In a causal loop diagram (CLD), what does an arrow with a "+" sign indicate?

  1. An increase in the first variable always increases the second variable
  2. Both variables change in the same direction (increase together or decrease together)
  3. The relationship is always positive for society
  4. The first variable is more important than the second
Show Answer

The correct answer is B. A "+" arrow indicates that both variables change in the same direction. If A increases, B increases. If A decreases, B decreases. It does not mean the relationship is good or that B always increases—it means they move together.

Concept Tested: Causal Loop Diagrams

See: Reading Causal Loop Diagrams

4. What is a system delay and why does it matter?

  1. A slowdown in data collection that should be eliminated
  2. The time lag between an action and its effect, which can cause overcorrection
  3. An intentional pause built into regulations
  4. The time needed to draw a causal loop diagram
Show Answer

The correct answer is B. System delays are time lags between when an action is taken and when its effects are felt. They matter because they can cause overcorrection—if you don't see immediate results, you may keep pushing harder, only to find you've overdone it when the delayed effects finally arrive.

Concept Tested: System Delays

See: System Delays

5. What are stocks and flows in systems thinking?

  1. Financial terms unrelated to systems analysis
  2. Stocks are accumulated quantities; flows are the rates at which stocks change
  3. Stocks are diagrams; flows are arrows between them
  4. Stocks are positive feedback; flows are negative feedback
Show Answer

The correct answer is B. Stocks are accumulated quantities you can measure at a point in time (like pollution in the atmosphere or wealth in an economy). Flows are the rates at which stocks change—inflows add to stocks, outflows subtract from them.

Concept Tested: Stocks and Flows

See: Stocks and Flows

6. What is an impact network in ethical analysis?

  1. A social media following that amplifies messages
  2. A map showing how an industry's harm spreads through interconnected stakeholders
  3. A professional networking group focused on ethics
  4. The financial connections between companies
Show Answer

The correct answer is B. An impact network maps how an industry's harm spreads through interconnected stakeholders. It shows primary effects (direct harm), secondary effects (harm to connected parties), and tertiary effects (broader societal impacts), revealing the full scope of harm.

Concept Tested: Impact Networks

See: Mapping Impact Networks

7. Why do interventions targeting individual elements of a system often fail?

  1. Individual elements are always protected by regulations
  2. Other elements compensate or the system adapts, negating the intended effect
  3. It's impossible to change individual elements
  4. Individual changes are always too expensive
Show Answer

The correct answer is B. Systems often resist change through compensating feedback loops. If you target one element, other elements may compensate, or the system may adapt in unexpected ways. This is why systems thinking emphasizes understanding whole system dynamics rather than isolated parts.

Concept Tested: System Resistance to Change

See: Why Systems Resist Change

8. What is the difference between first-order and second-order effects?

  1. First-order effects are ethical; second-order effects are unethical
  2. First-order effects are direct and immediate; second-order effects are indirect consequences of first-order effects
  3. First-order effects are quantitative; second-order effects are qualitative
  4. First-order effects are larger; second-order effects are smaller
Show Answer

The correct answer is B. First-order effects are the direct, immediate consequences of an action or condition. Second-order effects are indirect consequences that result from first-order effects. For example, pollution (first-order) leads to health problems (second-order) which leads to healthcare costs (third-order).

Concept Tested: Cascading Effects

See: First, Second, and Third-Order Effects

9. How do mental models affect systems?

  1. They have no effect on real-world systems
  2. The beliefs and assumptions people hold shape how they design, operate, and maintain systems
  3. Mental models only affect individual psychology, not systems
  4. They are always accurate representations of reality
Show Answer

The correct answer is B. Mental models—the beliefs, assumptions, and worldviews people hold—shape how systems are designed, operated, and maintained. A belief that "the market always knows best" leads to different system designs than a belief that "markets need regulation to function well."

Concept Tested: Mental Models

See: Mental Models and System Design

10. When analyzing a harmful industry's impact, why is it important to identify affected stakeholders?

  1. To determine who to blame for the harm
  2. To understand who experiences harm, who benefits, and who has power to create change
  3. To exclude certain groups from the analysis
  4. To simplify the analysis by focusing on one group
Show Answer

The correct answer is B. Stakeholder identification helps understand the full landscape of an industry's impact: who experiences harm (and what kind), who benefits from the current system, and who has the power and interest to create change. This is essential for designing effective interventions.

Concept Tested: Stakeholder Analysis

See: Identifying Affected Stakeholders