Exam Questions - Chapter 11: Theories and Strategies for Agricultural Development
What is the theory of induced innovation, what does it imply for the nature of agricultural development if land prices grow relative to wage rates in a country over time? How do transactions costs and collective action affect the results of induced technical innovation?
Assume that as agricultural land become scarcer compared to labor over time in a country, the land price increases relative to the price of labor. Use the concept of “induced technical innovation” to describe how the agricultural sector is expected to adjust to accommodate the relative price change. Use a graph to help in your description.
Explain how a long run decline in the price of nitrogen fertilizer compared to the price of maize might “induce a technological change” in the maize sector.
What does the theory of induced innovation say about the types of agricultural technologies that will be developed in densely-populated Asian countries as land rents increase relative to labor costs, and why might transactions costs and collective action influence what happens?
(a) What is the theory of induced innovation, and what changes does it say will occur in agriculture if land prices grow over time relative to wage rates? (b) How might transactions costs and collective action affect the direction of the induced innovation? (You can but do not have to use a graph to answer this question.)
Why might new agricultural technologies: (a) benefit consumers in developing countries and (b) help producers in one region but hurt producers in another region? (c) Why do some people feel that genetically modified organisms (GMOs) are risky technologies from (i) an environmental standpoint and (ii) an economic perspective? (d) Why might the benefits of these technologies outweigh their risks, both from environmental and economic perspectives? (Be sure to answer all the parts of this question)
Assume that, over time, the price of fertilizer in a country becomes cheaper compared to the price of rice. Use the concept of induced innovation to describe what is likely to happen to the development of new rice varieties and to the use of rice varieties by farmers. Presenting a graph should help with your description.
Assume that the price of fertilizer in a country becomes cheaper over time compared to the price of rice. Drawing on the concept of induced innovation, describe what is likely to happen to the development and use of new rice varieties in that country.
The United States developed its agriculture with a relatively large number of mechanical innovations while Japan developed its agriculture with relatively more biological and chemical innovations (compared to the United States). Use the concept of “induced innovation” to describe how this difference in innovation occurred.