Nobel Prize-winning economist James Meade argued that the market for honey was inefficient because pollination is a(n):
A) external benefit of honey production.
B) external cost of honey production.
C) private benefit of honey production.
D) private cost of honey production.

Question

Quizplus · Accepted Answer

Pollination is an external benefit of honey production because it benefits other crops and plants in the surrounding area that rely on bees for pollination. Therefore, the market for honey does not account for the full benefit provided by beekeepers and is therefore inefficient.

Nobel Prize-Winning Economist James Meade Argued That the Market for Honey