Chapter 1 Flashcards — The Basics
flashcards tis systems-thinking stocks flows feedback-loops
What are the three essential components of every system, in order of importance?
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- Function/Purpose (most important, least obvious) — what the system actually does. 2. Interconnections (critically important) — relationships between elements, often information flows. 3. Elements (least important) — the visible, tangible parts.
How do you determine a system’s true purpose?
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Watch the system behave over time. Actual behavior reveals real purpose — stated goals often differ from actual function. If a government proclaims environmental protection but allocates little money to it, environmental protection is not its purpose.
What is a stock?
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An accumulation of material or information built up in a system over time. It is the memory of the history of changing flows. Examples: population, bank balance, self-confidence, inventory.
What is a flow?
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A rate of change that enters or leaves a stock over time. Inflows increase stocks; outflows decrease stocks. Examples: births (inflow to population), deaths (outflow), deposits, withdrawals.
What is the Bathtub Principle?
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- Inflows > outflows → stock rises - Outflows > inflows → stock falls - Inflows = outflows → dynamic equilibrium A stock can be increased by either increasing inflows OR decreasing outflows — both are equally powerful.
Why do stocks change slowly?
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Stocks act as delays, buffers, ballast, and sources of momentum. Even abrupt changes to flows take time to change stocks. This is why populations can’t stop growing overnight and pollution accumulates for decades before damage appears.
What is a balancing feedback loop?
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A goal-seeking, stabilizing loop that opposes whatever change is imposed on the system. If a stock is pushed above a goal, a balancing loop pulls it back; if pushed below, it pushes it up. Examples: thermostat, body temperature, bank account management.
What is a reinforcing feedback loop?
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A self-amplifying loop that generates exponential growth or runaway collapse — “the more there is, the more is added.” Examples: compound interest, population growth, soil erosion cycle, arms races.
What is the Rule of 70?
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A shortcut for exponential growth: 70 ÷ growth rate (%) = years to double. Example: at 7% annual growth, a stock doubles in ~10 years.
What does “shifting dominance” mean in a system with multiple feedback loops?
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The relative strengths of competing feedback loops change over time. Whichever loop is currently stronger controls the current behavior. As conditions change, a different loop may become dominant — explaining complex behavioral transitions like S-curves and oscillations.
What is “dynamic equilibrium”?
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A state where inflows equal outflows, keeping a stock’s level steady — but it’s dynamic, not static. Material is still flowing in and out; the level just isn’t changing at that moment.
How do stocks decouple inflows and outflows?
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Stocks allow inflows and outflows to operate independently and at different rates. A gasoline tank lets drivers fill up at a different time than they drive. Banks let you earn money at a different rate than you spend it. This decoupling is why inventories, reservoirs, and savings exist.
What is the key mental shift from linear to systems thinking?
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Instead of: “A causes B” — ask: Does B also cause A? How does B reinforce or reverse itself? Move from a static world to a dynamic one. Stop looking for who to blame; start asking “What’s the system?”
Why is purpose (function) the most important yet hardest-to-see system component?
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Purpose is revealed only by observing behavior over time, not by reading mission statements or asking actors. Sub-purposes can conflict with overall purpose. The system will optimize for its actual function, not its stated one.
Total Cards: 14
Review Time: ~7 minutes
Priority: HIGH
Last Updated: 2026-05-30