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NREM Chapter 11
Technology and Environmental Study
Terms in this set (13)
What are the two main crops in the US?
corn and wheat
Describe Typical Input/Output Response Curve
Output level increases at increasing rate at low input levels then increase at decreasing rate at higher inputs, and finally decreases at higher levels. (caused by one input being a limit)
Affects of new technology on curve
Innovation shifts curve up. More output can be achieved with same input levels. New technology allows more goods and services to be produced with same amount of inputs.
Affect of technology on supply curve
Shifts right when food producers can get more output from same level of input. Supply more at the same price or the same amount at a lower price. Quantity increases and price decreases. Producers supply more and market price decreases while equilibrium increases
What is an example of an input saving?
Tractor. Allowed farmers to grow the same amount of crops with less labor and fewer draft animals. Used less labor and animals while increasing food production and outputs. (inputs used for other sources)
Other possible effect of technology shift. (Hybrid)
Shifts upward and to right. More responsive at high levels of application where traditional used for lower levels of technology use.
Costs of technology?
direct cost of research, development, and education. Increased levels of water and chemical associated with new technology.
Are technologies independent or packaged deals?
Technology is a package. Using a technology requires other sources being used, which affects multiple parts. (Using hybrid plants that require more water and nutrients)
Affects of Externalities on Technology
Shifts from S to Sp. Social Supply with technology left of private. More food produced and price is lower than socially best price because not all costs borne by farmer. Negative externality is between Sp and Ss.
Affect of technology to decrease externalities
Center pivot irrigation accomplished using less water.
Technology's relation to resource depletion
More water required for a technology leads to more depletion. When common property is used, will go to Qc. With new technology, ANB1 shifts rights and ANB2 shifts left.
Three components of output increasing technology
1.Private supply curve for agricultural products shifted to the right.
2. Negative externalities result in divergence or greater divergence between private and social costs of supply new land. It can lead to an improvement or destruction.
3.Difference in water use may bring issues of nonrenewable resources and common property resources
What is one key problem with technology?
Knowledge. It may not know the true cost or damage of technology until it's too late.
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