Lime Is Used in Farming to Reduce the Acidity of the Soil

question 102

True/False

Lime is used in farming to reduce the acidity of the soil. The chemical name for lime is calcium oxide. When water in the soil reacts with lime, the formula of the base formed is Ca(OH)₂.

---

Definitions:

Positive Externality

A benefit gained by a third party not directly involved in a transaction or activity, where the social or economic gain is not reflected in the market price.

Social Planner

A theoretical decision-maker in economics who aims to achieve optimal outcomes for society by considering the allocation of resources and distribution of goods and services.

Subsidy

A payment made by the government to a firm, industry, or individual, usually to encourage the production of a certain good or service or to reduce its price for consumers.

Output

The quantity of goods or services produced in a given time period, by a firm, industry, or country.