New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

AEC 2713, Intro to Food and Resource Economics

by: Taylor Baker

AEC 2713, Intro to Food and Resource Economics 2713

Marketplace > Mississippi State University > agricultural economics > 2713 > AEC 2713 Intro to Food and Resource Economics
Taylor Baker
View Full Document for 0 Karma

View Full Document


Unlock These Notes for FREE

Enter your email below and we will instantly email you these Notes for Intro to Food & Resource Econ

(Limited time offer)

Unlock Notes

Already have a StudySoup account? Login here

Unlock FREE Class Notes

Enter your email below to receive Intro to Food & Resource Econ notes

Everyone needs better class notes. Enter your email and we will send you notes for this class for free.

Unlock FREE notes

About this Document

Week one notes (August 16-19, 2016); all of chapter 1; partial chapter 2.
Intro to Food & Resource Econ
Danny Barefield
Class Notes
Microeconomic, Microeconomics, Economics, chapternotes




Popular in Intro to Food & Resource Econ

Popular in agricultural economics

This 8 page Class Notes was uploaded by Taylor Baker on Monday July 25, 2016. The Class Notes belongs to 2713 at Mississippi State University taught by Danny Barefield in Fall 2016. Since its upload, it has received 124 views. For similar materials see Intro to Food & Resource Econ in agricultural economics at Mississippi State University.


Reviews for AEC 2713, Intro to Food and Resource Economics


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 07/25/16
Intro to Food and Resource  Economics Thursday, August 18, 2016 1:45 PM Day 1: August 16, 2016   The definition of economics: • The science which studies human behavior as a relationship between the ends and scarce  means which have alternative uses.   Chapter 1: The Ten Principles of Economics   What is economics? • Persons, households, companies or societies  must make many decisions regarding what goods and services are to be consumed.   Goods ­  tangible items such as food, gasoline,  etc. Services ­ intangibles such as haircuts,  banking, etc.   "We must make decisions or "trade­offs" because  these goods and services are scarce."   Scarcity: • Formal definition: the limited nature of  society's resources.   Principle 1: People face trade­offs • Personal or family trade­offs ◦ food vs. clothing vs. healthcare vs.  vacation   • Societal trade­offs ◦ guns vs. butter (defense vs. domestic aid programs) ◦ clean environment vs. high level of  income ◦ efficient allocation vs. equitable  allocation • efficiency ­  society getting the  most it can from        resources • equity ­ distributing economic prosperity  uniformly among     society's members (treating  everyone equally) • with government policies these two goals  often conflict   Principle 2: The cost of something is  what you give up to get it • Benefits of college ◦ hopes of a better job with a higher  income and quality of life ◦ intellectual enhancement ◦ pleasing your parents   • Costs of college ◦ some would say the money spent on  tuition, room, board, and books ◦ they would be wrong ­ your time and the  value of that time may be         the largest cost   • Opportunity cost: whatever must be given up  in order to obtain some good of service.   • In the case of college, the opportunity cost  would be the earnings that you could have  made.   Principle 3: Rational people think at the margin • Rational people ­ people who purposefully do  the best they can to achieve their  objectives.   • Margin or marginal change ­ a small or  incremental adjustment to a plan of action.   Principle 4: People respond to incentives • Incentive ­ something that induces a person  to act.   • Gas taxes tend to induce people to drive more fuel efficient cars.   • Government regulations often include  incentives, but in many cases have unintended consequences. ◦ example ­ law requiring seat belts on  cars   Principle 5: Trade can make everyone  better off • Without trade, you would have to grow your  own food, make your own clothes, etc.   • With trade, you can concentrate on the things you do best   • Without trade, we wouldn’t have bananas,  coffee, etc.   • 45% of crude oil processed in the U.S.  refineries was imported in 2014.   Principle 6: Markets are usually a good  way to organize economic activity • Planned economy ­ an economy that allocates  scarce resources through a centralized  planning process.   • Market economy ­ an economy that allocates  resources through the decentralized decisions of many firms and households as they interact in markets for goods and services. ◦ An unusual characteristic of a market  economy is that no one looks out for  societal well­being as a whole   Principle 7: Government can sometimes  improve market outcomes • Government is needed to enforce the rules and intuitions that enable a market economy to  work.   • A key role is the enforcement of property  rights or the ability of an individual to own and exercise control over scarce resources.   • Another example of justified government  interference is in the case of a market  failure. ◦ Market failure ­ a situation in which a  market left on its own fails to allocate  resources efficiently.   • Market failures can have various causes: ◦ Externalities are the impacts of one  entity's actions on the well­beings of  other entities. ◦ Market power is the ability of a single  economic entity (monopoly or monopsony)  or small group of economic entities  (oligopoly or oligopoly) to have a  substantial influence on market prices. ◦ Efficient outcomes can lead to sizable  disparities in economic well­being that  can have unforeseen consequences.   Principle 8: A country's standard of  living depends on its ability to produce  goods and services • Standards of living  vary greatly between  countries. This variation is almost caused by a country's productivity or the quantity of  goods and services produced from each unit of labor. ◦ The U.S. standard of living has increased due to increasing productivity over time ◦ Rapidly rising productivity rates in  Japan in the 1970s and 1980s resulted in  a slowing of income growth in the U.S.   • A key question (but not the only one) for  policy makers is how a proposed policy will  affect productivity.   • Keys to increasing productivity: ◦ Well educated workers ◦ Obtain the needed tools or factors of  production ◦ Access the best available technology   Principle 9: Prices rise when the  government prints too much money • "Too many dollars chasing too few goods"  leads to inflation. ◦ Inflation is an increase in the overall  level of prices in the economy (no such  thing as meat inflation or gas inflation) ◦ German example: in January 1921, a  newspaper cost 0.30 marks. In November  1922, that newspaper cost 70,000,000  marks. ◦ Growth in the quantity of money causes  inflation.   Principle 10: society faces a short­run  trade­off between inflation and  unemployment • Short term effects of injecting money in the  economy ◦ Increasing the amount of money stimulates spending and the demand for goods and  services.   Chapter 2: Thinking like an  economist • What is economics? ◦ The science of decision making between  producers and consumers   • Roles of the economist: ◦ Scientist: • Utilize the scientific method to  observe natural (and sometimes  manmade) experiments in the world • Utilize assumptions to simplify the  analysis • Develop models to explain economic  reality ▪ A model is used to represent  reality, but is not reality. ▪ A basic economic model is the  circular flow diagram. ▪ A circular flow diagram looks at  the way money, goods, and  services move throughout the  economy.   • Production possibilities frontier: ◦ A graph or equation that shows the  combinations of two (or more) goods that  the economy can produce given its  resources.


Buy Material

Are you sure you want to buy this material for

0 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Jennifer McGill UCSF Med School

"Selling my MCAT study guides and notes has been a great source of side revenue while I'm in school. Some months I'm making over $500! Plus, it makes me happy knowing that I'm helping future med students with their MCAT."

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.