Question

Which of the following most accurately represents the relationship between externalities and agricultural economics?

externalities, like ecological services, are considered to be “free” and of no economic concern to the grower

externalities are a net positive to communities due to the extra employment that results from the need to remediate them

there is increasing pressure on growers to reduce their production costs by using methods that increase externalities

there is increasing pressure to include the cost of externalities in evaluations of the economy of agriculture

Answer 1

D. There is increasing pressure to include the cost of externalities in evaluations of the economy of agriculture

Step-by-step explanation:

You want to know an accurate representation of the relationship between externalities and agricultural economics.

Externalities

Externalities are costs or benefits that accrue to third parties not involved in the production or use of products of agriculture. They include impacts on natural resources, wildlife and ecosystem biodiversity, and human health, among others. A 2004 study estimated the costs in these areas in the US to be between $29 and $96 per hectare of cropland.

These costs are borne by society at large, and are rarely charged back to farmers or agricultural supply companies.

Awareness

As public awareness increases regarding these costs, pressure tends to be put on growers and livestock suppliers, and their suppliers, to reduce the adverse effects of their operations. That is ...

... there is increasing pressure to include the cost of externalities in evaluations of the economy of agriculture