Question

True False: If the statement is false, make an argument why.

5. Since the market systems allocates natural resources in the best long-run interest of society, there is no need for government internention

6. The primary motivator of farmers decision on the use of natural resources is self-interest

8 Current water policy discourages waste and encourages efficient use of water.

9 Agricultural has no potential to produce energy.

Answer 1

5. False:

Market failures are instances where the market systems either cannot, or will not, act as efficient agents of allocaton of natural resources, even though society may demand (i.e., be willing to pay for) these goods and services.

6. True

8. True

9. False

Biomass energy has the potential to supply a significant portion of America's energy needs, while revitalizing rural economies, increasing energy independence, and reducing pollution.

Crops grown for energy could be produced in large quantities, just as food crops are. While corn is currently the most widely used energy crop, native trees and grasses are likely to become the most popular in the future.

Rural communities could become entirely self-sufficient when it comes to energy, using locally grown crops and residues to fuel cars and tractors and to heat and power homes and buildings.