Economics class video: Food and fuel compete for farmland

This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.

Specification:

• Opportunity cost, demand and supply, externalities, government intervention

Click to watch the short video below and then answer the questions:

• Explain the concept of opportunity cost using the case study provided

• How is the price mechanism working to persuade more farmers to grow food rather than crops for biofuel?

• Explain how imperfect information is creating problems when deciding whether biofuel is good for the environment

• Explain how government intervention is distorting price signals when it comes to resource allocation

Gavin Simpson and Pete Clift, Economics In Ten podcast