Economic Issues with Food Production

Question 1

What is public good?

Answer 1

A good which when supplied to one individual is immediately available to others at no charge

Example - Animal welfare

Question 2

What is a negative externality?

Answer 2

A cost that is suffered by a third party as a consequence of an economic transaction
(spillover effect/external cost)

Example - Animal suffering

Question 3

What was the green revolution?

Answer 3

Modernisation/industrialisation of agriculture industry
Increased crop productivity

Question 4

Economics and Animal Welfare

Answer 4

EU Treaty of Amsterdam (1999)
* Animals are sentient beings
Animal Welfare Act (2006) - Duty of care
* Minimum standard - ‘a life worth living’

5 freedoms

Question 5

Consumers definition of animal welfare

Answer 5

How natural an environment is for an animal

Question 6

Vet/economists view of animal welfare

Answer 6

Physical fitness and health of animals