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Mental Models

Feedback Loops & Systems Thinking

Final Exam: Feedback Loops & Systems Thinking

A graded, one-way final exam on systems thinking — stocks and flows, reinforcing and balancing loops, delays and oscillation, and leverage points. Pass mark 70%.

20 min Updated Jun 27, 2026

This is the final exam for Feedback Loops & Systems Thinking. It pulls together the whole course: stocks and the flows that fill and drain them, reinforcing loops that make “more beget more,” balancing loops that hunt a goal and resist change, the delays that turn those balancers into oscillators, and the leverage points where a small push can move a whole system. Several questions look easy until you notice that a stock is masquerading as a flow, or a reinforcing loop is wearing a balancing disguise. Reason each one through.

Warning:

How this exam works

Read carefully — this exam is final. Each question appears one at a time. Once you submit an answer it is locked for good: there’s no going back, no retry, and no restart. Your score is hidden until the end, where you’ll see a pass/fail verdict. The pass mark is 70%. A few questions ask you to select all correct answers.

Question 1 of 28

What is the cleanest distinction between a stock and a flow?

Select an answer to continue.

Course Recap

Big picture

Feedback loops & systems thinking, in one picture

  • Feedback Loops & Systems Thinking
    • Stocks & flows
      • Stock = accumulated level; flow = the rate that fills/drains it. Never confuse CO2 (stock) with emissions (flow). Stocks create inertia.
    • Reinforcing loops
      • "More begets more" — exponential growth/collapse; virtuous & vicious share one structure; always hits a limit eventually.
    • Balancing loops
      • Sense the gap to a goal and shrink it — "more leads to less"; thermostats, homeostasis; they resist change (policy resistance).
    • Delays & oscillation
      • A balancing loop + delay overshoots and oscillates (acting on stale data) — the scalding shower, the bullwhip. Fix: shorten the delay or ease off.
    • Leverage points
      • Numbers → buffers → loop structure → information → rules/incentives → goals & paradigms. The obvious lever is the weak one.
Success:

Key takeaways

Systems thinking is the habit of seeing the loops beneath the events. Start by separating stocks (accumulated levels) from the flows that fill and drain them — confusing the two is the cardinal error (emissions can fall while CO2 still rises). Learn the two engines: reinforcing loops that make more beget more (compounding, bubbles, bank runs — always racing toward a limit), and balancing loops that hunt a goal and resist change (thermostats, homeostasis, policy resistance). Add a delay to a balancing loop and it stops gliding and starts oscillating — the scalding shower, the supply-chain bullwhip — so the fix is to shorten the delay or ease off the correction rather than chase stale data. And when you want to change a system, climb the leverage ladder: numbers and buffers are weak; rules, incentives, goals, and paradigms are strong. Above all, beat the recurring pitfall — linear thinking — which blinds you to both exponential growth and delayed oscillation. Stop fighting the symptoms; find the loop.

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