Which of the following is a major economic benefit of introducing high-yield crop varieties during the Green Revolution?

• A. Decreased efficiency in resource allocation
• B. Lower producer surplus because of reduced crop yields
• C. Increased total economic surplus due to higher agricultural productivity
• D. Reduced consumer surplus by raising food prices

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of economic surplus, which includes both consumer surplus and producer surplus. Economic surplus measures the overall benefit to society from the production and consumption of goods.
2. Step 2: Recognize that introducing high-yield crop varieties increases agricultural productivity, meaning more output can be produced from the same amount of inputs.
3. Step 3: Analyze how higher productivity affects supply: an increase in supply typically lowers prices, benefiting consumers and producers by increasing total economic surplus.
4. Step 4: Evaluate the options given: decreased efficiency or lower producer surplus contradict the expected effects of higher productivity, while increased total economic surplus aligns with economic theory.
5. Step 5: Conclude that the major economic benefit of high-yield crop varieties is the increase in total economic surplus, reflecting gains for both producers and consumers due to higher output and potentially lower prices.