California Agriculture

Which framework best explains California’s agricultural productivity?

• Farm productivity is unrelated to infrastructure.
• Rainfall alone explains all output.
• Natural conditions interact with irrigation, capital, labor, and market access.
• Soil alone explains all output.

Why does high-value specialty-crop production increase the importance of reliable irrigation?

• Irrigation affects only low-value land.
• Crop losses can impose large economic costs per acre.
• Specialty crops require no water.
• High-value crops are grown only in oceans.

What economic concept describes competition among urban, agricultural, and environmental uses of scarce California water?

• Absolute abundance
• Zero scarcity
• Price neutrality
• Opportunity cost

How can drought influence California farm decisions?

• Through water prices, groundwater pumping, acreage changes, and crop selection
• By making water constraints irrelevant
• By eliminating all market signals
• By forcing every farm to grow the same crop