The economic perspective examines issues related to production, distribution, and consumption of goods and services within a society. It focuses on factors such as costs, benefits, supply and demand dynamics, market structures, and overall efficiency.
Related terms
Externalities: Externalities are unintended consequences resulting from economic activities that affect third parties not involved in the transaction. For example, pollution generated by industrial agriculture affects surrounding communities' health without them directly benefitting from the agricultural products.
Cost-benefit analysis: Cost-benefit analysis is an economic tool used to assess whether the benefits gained from a particular action or policy outweigh the costs associated with it. For industrial agriculture, this analysis may involve evaluating the economic benefits of increased crop yields against the costs of environmental damage and health impacts.
Market failure: Market failure occurs when the free market fails to allocate resources efficiently, resulting in an inefficient allocation of goods and services. In the case of industrial agriculture, market failures can arise due to externalities, inadequate information, and unequal distribution of power among market participants.