Some underlying factors of the recent world food crisis discussed in lecture include:Question 26Select one:a.demand for biofules and rising price of oilb.declining agricultural productivityc.growing global demand for meatd.all of the answers are valid

A "food shock" isGroup of answer choicesan imagined scenario potentially affecting the livelihoods of millionsthe decrease in available livestock feeda dramatic increase in food priceanother term for panic-buying at supermarketsthe loss of food supply due to climate events or geopolitical crises

There are many global causes of food insecurity. Which of the following is a global factor that effects the amount of food available?Group of answer choicesChanging weather patternsAll answers are correctDisease outbreaksUnemployment

Food versus fuel – a classic application of opportunity costWorld food prices have been rising since 2007. The riseshave been particularly strong for vegetable oil, wheatand corn. This has resulted in civil unrest and riots inmany poor countries. In response, for example in India,exports of grain products have been banned in order tomaintain supplies in the home market. China has alsotaken steps to quell the rise in the price of cooking oil.One factor that has been driving up world food priceshas been the increased demand for biofuels which areproduced from agricultural crops traditionally used forfood and animal feed. The most important biofuel isethanol which is produced from corn and sugar cane.These crops are very important sources of biofuelproduction in the USA, Brazil and India.As global oil prices increase, there is a growing needfor the increased agricultural production of corn, soyabeans and sugar cane for conversion into biofuels. Thismay be good news for farmers producing these productsand indeed, for users of biofuels. It is not good newsfor livestock farmers who experience increased feedprices or for consumers who experience rising grain andmeat prices.Source: Adapted from S. Sexton et al, Agricultural and Resource Economics, Vol 12, No 1, 2008.Read the feature below and then answer the questions that follow.1 Use the information above to show how the conceptof opportunity cost might be used to explain thetrade-offs as they affect:■ governments■ farmers■ consumers.2 Outline the likely costs and benefits of the increasedglobal demand for biofuels.SELF-ASSESSMENT TASK 1.2China: the challenges of an ageing populationAn ageing population is one usually associated withdeveloped economies. Falling birth rates and increasedlife expectancy in many European countries and Japanhas created a situation in which younger generations arefacing the prospect of caring for an ageing population.This demographic situation is now a major problem inChina. The origin lies in China’s one-child policy whichhas restricted the number of children that most urbanfamilies could have and was originally designed to reducethe rate of growth of a booming population. There haveRead the feature below and then answer the questions that follow.16Cambridge International AS Level Economics

What is one of the ways global warming could impact our food supply? A. It has no overall impacts B. Food prices could rapidly increase C. Food prices could rapidly decrease D. Food will become more scarce

Food production must increase, but so must: