INTRO TO AG ECONOMICS
INTRO TO AG ECONOMICS AGEC 105
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This 18 page Class Notes was uploaded by Clifford Mertz on Wednesday October 21, 2015. The Class Notes belongs to AGEC 105 at Texas A&M University taught by Ariun Ishdorj in Fall. Since its upload, it has received 55 views. For similar materials see /class/225915/agec-105-texas-a-m-university in Agricultural & Resource Econ at Texas A&M University.
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Date Created: 10/21/15
AGEC 105 Introduction to Agricultural Economics Ariun Ishdorj Agricultural Economics j agecontamuedu Introduction gt IMPORTANT DATES gt Friday September 3 last day to adddrop courses gt Quiz on Friday September 10 gt CLASS WEB SITE gt httpelearningtamuedu gt SYLLABUS gt CHAPTER 1 gt Graphs and Their Meaning pages 1012 gt What is Agricultural Economics Graphs and Their Meaning J Advertising and Sales at Len amp Harry s Sales 100076 per 73 quotI F Advertising Sales Month 61 I 10005 per Month 10005 per Month IIIIIIIIIquot D I 1 58 C 2 46 a a s 49 46 i 6 58 i 1 61 1 5 11 73 E 12 76 l i l 1 123456789101112 Advertising 1000 per Month Graphs and Their Meaning Measuring the Slope of a Curve IThe slope of this curve at point B Sales I D tSthe Slope ofthe per 53 I C I straight line tangent to Month l i the curve at point B 39 39 39 quot 39 t IB 39 i w l I 46 I A I I I I I I I 43 l I l I H I I 40 I I I I 3 Along the tangent line 4 saIeS increase from z when advertisIng increases 43 I0 49 unIIs A y 5 I I I I from O to 3 units A X 3 So the curve39s slope at point I I I BS Z 39 I i i 39 I I I I I I I I I 12456789101112 Advertising 1000 per Month Graphs and Their Meaning J Straight Lines with Different Slopes and Vertical Intercepts a Graphs and Their Meaning J Shifts in the Graph of Advertising and Sales Sales 1000 per Month 64 58 September i 6 Advertising 1000 per Month Graphs and Their Meaning J Shifts of Curved Lines and Straight Lines An increase in Z causes an increase in Va any value of X b V C h 7 n F i An inueasa in ZL u e a decrease In Vat any value 0 X Topics of Discussion gtSCOPE OF ECONOMICS gt Scarce Resources gtMaking Choices gtDEFINITION OF ECONOMICS gtMicroeconomics versus Macroeconomics gtPositive versus Normative Economics gtAlternative Economic Systems gtDefmition of Agricultural Economics gt GRAPHS AND THEIR MEANING Scarce Resources gt Natural and biological resources gt Natural land mineral and oil deposits and water resources gt 35 million square miles of land surface gt 954 million acres of land in farms gt Biological livestock crops forests gt Human resources gt Labor gt 1411 million people in US civilian labor force gt Manufactured resources gt Tools machinery equipment factory storage transportation gt 4 million miles of highways gt 600000 bridges gt 1214 million tons of steel making capacity Are cars scarce in Houston and Los Angeles during rush hour Scarcity I Houston Los Angel Making Choices gt Resource scarcity limited resources but unlimited wants gt Opportunity Cost an implicit cost associated with economic decisions gt Specialization comparative advantage and the basis for trade Opportunity Cost gt The implicit cost associated with the next best alternative in a set of choices available to decisionmakers gt What is your opportunity cost of pursuing a degree at Texas AampM University gt Bill Gates Mark Zuckerberg Oprah Winfrey and Alex Rodriguez KANSAS Surplus of wheat Shortage of oranges Shortage of potatoes o9 O 0 395 8 A o o 0 6 90 Q Q lt IDAHO FLORIDA Surplus of potatoes Surplus of oranges Shortage of wheat Petatoes Shortage of wheat lt Orangeslt Shortage of oranges Shortage of potatoes Specializatin Each state specializes in What it does best and trades with other state gt Specialization in production provides the basis for trade among producers and consumers gt Relative strength of Kansas wheat gt Relative strength of Idaho potatoes gt Relative strength of Florida oranges Definition of Economics gt Microeconomics versus Macroeconomics gt Micro individuals or groups of individuals gt Macro broad aggregates at economy level gt Positive versus Normative Economics gt Positive What is or What would happen ii gt Normative What should be gt Alternation Economic Systems gt Capitalism and socialism Definition of Economics a social science that deals with how consumers producers and societies choose among the alternative uses of scarce resources in the process of producing exchanging and Consuming g00ds and services What is Agriculture l I ll 11 s l r 39 39 44 Farm Supply First Handler Food Commodities Food Products Processor Distributor Retailer 39 quot 39 7 What is Agricultural Economics an applied social science that deals With how producers consumers and societies use scarce resources in the production processing marketing and consumption of food and fiber products Summary gt Economics is about making choices concerning scarce resources because of unlimited wants gt Agricultural Economics concerned with food ber natural resource sectors gt Aggregate vs individual firm market levels gt Know Chapter 1 key terms questions graphical analysis appendix
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