Question

British environmentalist Kate Humble recently made the following statement: “Everyone's going to hate me and call me a middle-class bitch but I'm past caring because I'm so incensed. Food waste is endemic but we don't value food because it's not expensive enough.” Is Humble's statement economically correct? Explain your answer in detail.

Answer 1

Statement is not economically correct and this is because food is expensive when you consider the opportunity cost as well where the cost of food when it is combined with the implicit cost where you include what you are actually sacrificing to buy food is seen over course of time then you can understand that the value of food is very high and that is the reason why Economics is not correct but maybe correct in accounting ways.

Example in a month consider your spending $500 on food and this will account to $6,000 annually spent on food and with $6,000 we can purchase lot of production this is the implied cost and that is the reason why the value of food is lot high