Question

More developed countries tend to have greater access to agricultural technology and government-supported loans used to purchase computerized farm equipment. Which of the following best explains the significance of access to these resources?Government financing and improved technology lead to an increase in the number of small, family-owned farms.Option A,Government financing and improved technology lead to an increase in the number of small, family-owned farms.Government financing and improved technology lead to a reduced risk of environmental pollution and fewer environmental regulations.Option B,Government financing and improved technology lead to a reduced risk of environmental pollution and fewer environmental regulations.Government financing and improved technology lead to larger economies of scale and improved efficiency.Option C,Government financing and improved technology lead to larger economies of scale and improved efficiency.Government financing and improved technology lead to higher consumer prices for government-subsidized agricultural products.Option D,Government financing and improved technology lead to higher consumer prices for government-subsidized agricultural products.Government financing and improved technology lead to a reduction in the use of pesticide and fertilizer.

Answer 1

The best explanation of the significance of access to agricultural technology and government-supported loans is:

Option C: Government financing and improved technology lead to larger economies of scale and improved efficiency.

This option highlights how access to advanced agricultural technology and financial support allows farms, particularly larger operations, to function more efficiently, thereby increasing productivity and reducing costs. This trend typically results in economies of scale, where the average cost of production decreases as the scale of production increases. In contrast, the other options either misinterpret the effects of technology and financing or present less relevant outcomes.