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Introduction to Agricultural Economics

by: Penson, John B.; Capps, Oral; Rosson, C. Parr

Introduction to Agricultural Economics

by: Penson, John B.; Capps, Oral; Rosson, C. Parr

ISBN 13:
9780139011900
ISBN 10:
0139011900
Edition: 2nd
Format: Hardcover
Copyright: 10/01/1998
Publisher: Pearson College Div
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Summary

This text presents Agribusinesss vis- -vis Production. The text presents basic concepts of economics applied to the food and fiber industry. The micro and macro focuses influencing the decisions of producers and consumers is quite detailed.

PART I INTRODUCTION

(52)

CHAPTER 1 WHAT IS AGRICULTURAL ECONOMICS?

(17)

Scope of Economics

(4)

Scarce Resources

(1)

Making Choices

(2)

Definition of Economics

(2)

Microeconomics versus Macroeconomics

(1)

Positive versus Normative Economics

(1)

Alternative Economic Systems

(1)

Definition of Agricultural Economics

(1)

What Does an Agricultural Economist Do?

(1)

Role at the Microeconomic Level

(1)

Role at the Macroeconomic Level

(1)

Marginal Analysis

(1)

What Lies Ahead?

(3)

A Review of Graphical Analysis

(5)

Constructing a Graph

(2)

Slope of a Linear Curve

(1)

Slope of a Nonlinear Curve

(2)

Exercises

(1)

CHAPTER 2 THE U.S. FOOD AND FIBER SYSTEM

(33)

Indices

(2)

What is the Food and Fiber Industry?

(3)

Employment

(1)

Output

(2)

Changing Complexion of Farming

(10)

Physical Structure

(3)

Productivity

(1)

Profitability

(3)

Financial Structure

(3)

Other Sectors in the Food and Fiber Industry

(15)

Farm Input Suppliers

(3)

Food Processors, Wholesalers, and Retailers

(2)

Value Added Process

(5)

Fiber Manufacturers

(1)

Shippers and Handlers

(1)

Importance of Export Markets

(5)

Exercises

(2)

PART II UNDERSTANDING CONSUMER BEHAVIOR

(68)

CHAPTER 3 THEORY OF CONSUMER BEHAVIOR

(19)

Utility Theory

(4)

Total Utility

(2)

Marginal Utility

(2)

Law of Diminishing Marginal Utility

(1)

Indifference Curve

(2)

Concept of Isoutility

(1)

Marginal Rate of Substitution

(1)

The Budget Constraint

(7)

Exercises

(5)

CHAPTER 4 CONSUMER EQUILIBRIUM AND MARKET DEMAND

(26)

Conditions for Consumer Equilibrium

(2)

Changes in Equilibrium

(5)

Changes in Product Price

(3)

Changes in Other Demand Determinants

(2)

The Law of Demand

(4)

Market Demand

(2)

Interpretation of Market Demand

(2)

Tastes and Preferences

(4)

Composition of the Population

(1)

Attitudes toward Nutrition and Health

(1)

Food Safety

(1)

Lifestyles

(1)

Technological Forces

(1)

Advertising

(1)

Consumer Surplus

(3)

Advanced Topics

(1)

Extension of Conceptual Framework

(1)

Exercises

(6)

CHAPTER 5 MEASUREMENT AND INTERPRETATION OF ELASTICITIES

100

(21)

Own-price Elasticity of Demand

101

(4)

Income Elasticity of Demand

105

(1)

Cross-price Elasticity of Demand

106

(1)

Other General Properties

106

(12)

Some Real-World Examples

110

(2)

Applicability of Demand Elasticities

112

(6)

Exercises

118

(3)

PART III BUSINESS BEHAVIOR AND MARKET EQUILIBRIUM

121

(146)

CHAPTER 6 ASSESSING BUSINESS PERFORMANCE

123

(18)

Annual Business Reports

126

(7)

Business Balance Sheets

126

(2)

Business Income Statements

128

(2)

Use in Business Planning

130

(3)

Cost of Doing Business

133

(2)

Explicity versus Implicit Costs

134

(1)

Costs in Short Run versus Long Run

134

(1)

Measuring Business Revenue

135

(1)

Assessing Profit

136

(2)

The Accountant versus the Economist

136

(1)

Why the Fuss over Profit?

137

(1)

What Lies Ahead?

138

(2)

Exercises

140

(1)

CHAPTER 7 INTRODUCTION TO PRODUCTION AND RESOURCE USE

141

(31)

Conditions for Perfect Competition

142

(1)

Classification of Inputs

143

(1)

Land

143

(1)

Labor

143

(1)

Capital

143

(1)

Management

144

(1)

Important Production Relationships

144

(7)

The Production Function

144

(1)

Total Physical Product Curve

145

(1)

Marginal Physical Product Curve

146

(2)

Average Physical Product Curve

148

(1)

Stages of Production

149

(2)

Assessing Short-run Business Costs

151

(4)

Total Costs and the TPP Curve

151

(3)

Average Costs and the APP Curve

154

(1)

Marginal Costs and the MPP Curve

154

(1)

Economics of Short-run Decisions

155

(7)

Marginal and Average Revenue

155

(1)

Level of Output: MC = MR

156

(3)

Level of Resource Use: MVP = MIC

159

(1)

A Real-World Application

160

(2)

What Lies Ahead?

162

(5)

Exercies

167

(5)

CHAPTER 8 ECONOMICS OF INPUT SUBSTITUTION

172

(25)

Concept and Measurement of Isoquants

173

(4)

Rate of Technical Substitution

174

(2)

A Case Example

176

(1)

The Iso-cost Line

177

(2)

Least-cost Use of Inputs for a Given Output

179

(3)

Short-run Least-cost Input Use

179

(2)

Effects of Input Price Changes

181

(1)

Least-cost Input Use for a Given Budget

182

(1)

Long-run Expansion of Input Use

183

(4)

Long-run Average Costs

184

(1)

The Long-run Planning Curve

185

(2)

Economics of a Business Expansion

187

(3)

Capital Variable in the Long Run

189

(1)

Expansion Path Through Isoquants

190

(2)

Advanced Topic

192

(2)

Exercises

194

(3)

CHAPTER 9 ECONOMICS OF PRODUCT SUBSTITUTION

197

(15)

Concept and Measurement of the Production Possibilities Frontier

198

(3)

Production Possibilities Frontier

198

(1)

Product Substitution

198

(3)

Concept and Measurement of the Iso-revenue Line

201

(2)

Profit-maximizing Combination of Products

203

(3)

Choice of Products in the Short Run

204

(1)

Effects of Change in Product Prices

205

(1)

Long-run Expansion of Production

206

(3)

Capital Variable in the Long Run

206

(1)

Expansion of Production Possibilities Frontier

207

(2)

Exercises

209

(3)

CHAPTER 10 MARKET EQUILIBRIUM AND PRODUCT PRICE: PERFECT COMPETITION

212

(19)

Derivation of the Market Supply Curve

213

(3)

Firm Supply Curve

213

(1)

Market Supply Curve

214

(1)

Own-price Elasticity of Supply

215

(1)

Producer Surplus

216

(1)

Market Equilibrium under Perfect Competition

216

(6)

Market Equilibrium

217

(2)

Total Economic Surplus

219

(2)

Applicability to Policy Analysis

221

(1)

Adjustments to Market Equilibrium

222

(5)

Market Disequilibrium

222

(1)

Length of Adjustment Period

223

(1)

Cobweb Adjustment Cycle

224

(3)

Exercises

227

(4)

CHAPTER 11 MARKET EQUILIBRIUM AND PRODUCT PRICE: IMPERFECT COMPETITION

231

(36)

Market Structure Characteristics

232

(3)

Number of Firms and Size Distribution

232

(1)

Product Differentiation

233

(1)

Barriers to Entry

233

(1)

Economic Environment

234

(1)

Classification of Firms

235

(1)

Imperfect Competition in Selling

235

(13)

Monopolistic Competition

236

(5)

Oligopoly

241

(3)

Monopoly

244

(2)

Comparison of Alternative Market Structures

246

(1)

Welfare Effects of Imperfect Competition

246

(2)

Imperfect Competition in Buying

248

(4)

Monopsony

248

(3)

Oligopsony and Monopsonistic Competition

251

(1)

Market Structures in Livestock Industry

252

(2)

Governmental Regulatory Measures

254

(8)

Legislative Acts

254

(3)

Ceiling Price

257

(1)

Lump-sum Tax

258

(1)

Minimum Price

259

(3)

Exercises

262

(5)

PART IV GOVERNMENT IN THE FOOD AND FIBER INDUSTRY

267

(50)

CHAPTER 12 GOVERNMENT INTERVENTION IN AGRICULTURE

269

(23)

Rationale for Government Intervention

270

(1)

Farm Economic Issues

271

(6)

Defining the Farm Problem

271

(3)

Forms of Government Intervention

274

(2)

Food Safety

276

(1)

Consumer Issues

277

(3)

Adequate and Cheap Food Supply

277

(1)

Nutrition and Health

278

(1)

Food Subsidies

278

(1)

Rural Communities

279

(1)

Resource Issues

280

(4)

Soil Erosion and Land Use

281

(1)

Adequacy of Water Supply

281

(2)

Hired Farm Labor

283

(1)

Energy

284

(1)

International Issues

284

(4)

Adequacy of World Food Supply

285

(1)

Movement toward Free Trade

286

(2)

What Lies Ahead?

288

(4)

CHAPTER 13 SUPPORTING FARM PRICES AND INCOMES

292

(25)

Price and Income Support Mechanisms

294

(9)

Loan Rate Mechanism

294

(2)

Set-Aside Mechanism

296

(3)

Target Price Mechanism

299

(1)

Conservation Reserve Mechanism

300

(1)

Commodities Covered by Government Programs

301

(2)

Phasing Out of Supply Management

303

(1)

Domestic Demand Expansion Programs

304

(2)

Importance of Export Demand

306

(8)

Calculating Total Demand Elasticity

307

(1)

Impact of Rising Export Demand

308

(1)

Impact on Farm Revenue of Wheat Producers

309

(2)

Implications for Policy

311

(3)

Exercises

314

(3)

PART V MACROECONOMICS OF AGRICULTURE

317

(128)

CHAPTER 14 PRODUCT MARKETS AND NATIONAL OUTPUT

319

(28)

Circular Flow of Payments

320

(3)

Barter Economy

320

(1)

Monetary Economy

321

(2)

Composition and Measurement of Gross Domestic Product

323

(3)

Consumption, Savings, and Investment

326

(10)

Determinants of Planned Consumption

327

(3)

Determinants of Planned Saving

330

(2)

Determinants of Planned Investment

332

(4)

Equilibrium National Income and Output

336

(6)

Aggregate Expenditures

336

(1)

The keynesian Cross

337

(1)

Deriving Aggregate Demand Curve

337

(1)

Aggregate Supply and Full Employment

338

(3)

Recessionary and Inflationary Gaps

341

(1)

What Lies Ahead?

342

(4)

Exercises

346

(1)

CHAPTER 15 CONSEQUENCES OF BUSINESS FLUCTUATIONS

347

(23)

Fluctuations in Business Activity

348

(3)

Nature of Business Fluctuations

348

(1)

Indicators of Economic Activity

349

(2)

Consequences of Business Fluctuations

351

(10)

Unemployment

351

(2)

Inflation

353

(7)

Short-run Phillips Curve

360

(1)

Macroeconomic Policy Options

361

(7)

Laissez-faire Macroeconomic Policy

362

(1)

Demand-oriented Macroeconomic Policy

362

(2)

Supply-oriented Macroeconomic Policy

364

(4)

Exercises

368

(2)

CHAPTER 16 MONEY, MONEY MARKETS, AND MONETARY POLICY

370

(25)

Characteristics of Money

371

(2)

Functions of Money

371

(1)

Money versus Near Monies

372

(1)

Backing of Money

372

(1)

Federal Reserve System

373

(5)

Organization of the Federal Reserve System

373

(2)

Functions of the Federal Reserve System

375

(2)

Monetary Policy Instruments

377

(1)

Changing the Money Supply

378

(6)

Creation of Deposits

378

(4)

Monetary Policy and the Money Supply

382

(2)

Money Market Equilibrium

384

(2)

Demand for Money

384

(1)

Equilibrium Conditions

385

(1)

Effects of Monetary Policy on the Economy

386

(7)

Transmission of Policy

386

(1)

Combating Recessionary Gaps

387

(1)

Combating Inflationary Gaps

388

(1)

Combating Stagflation

389

(1)

Microeconomic Perspectives

389

(1)

Potential Problems in Policy Implementation

390

(3)

Exercises

393

(2)

CHAPTER 17 FISCAL POLICY AND BUDGET DEFICITS

395

(23)

The Federal Budget

396

(4)

Federal Expenditures

396

(2)

Federal Receipts

398

(1)

Budget Deficit

398

(2)

The National Debt

400

(5)

National Debt and GDP

401

(1)

Interest Payments and GDP

402

(1)

Ownership of National Debt

403

(1)

Burdening Future Generations?

403

(2)

Fiscal Policy Options

405

(8)

Automatic Policy Instruments

405

(1)

Discretionary Policy Instruments

406

(2)

Fiscal Policy and Aggregate Demand

408

(1)

Combating Recessionary Gaps

409

(2)

Combating Inflationary Gaps

411

(1)

Combating Stagflation

412

(1)

Difficulties in Policy Implementation

412

(1)

What Lies Ahead?

413

(3)

Exercises

416

(2)

CHAPTER 18 MACROECONOMIC POLICY AND AGRICULTURE

418

(27)

Impacts of Policy Actions on the General Economy

419

(3)

Market Interest Rates

419

(1)

Real GDP and Disposable Income

419

(1)

Unemployment Rate

420

(1)

Inflation Rate

421

(1)

Foreign Exchange Rate

421

(1)

Impacts of Policy Actions on Agriculture

422

(7)

Farm Product Prices

422

(2)

Farm Input Prices

424

(1)

Farm Interest Rates

425

(1)

Net Farm Income

426

(2)

Farmland Prices

428

(1)

A Brief History Lesson

429

(9)

The 1970s: A Decade of Expansion

429

(3)

The 1980s: A Decade of Contraction

432

(6)

The 1990s: A Decade of Change

438

(7)

Status of the Macroeconomy

438

(1)

Status of the Agricultural Economy

439

(1)

Federal Farm Policies

440

(5)

PART VI INTERNATIONAL AGRICULTURAL TRADE

445

CHAPTER 19 AGRICULTURE AND INTERNATIONAL TRADE

447

(27)

Growth and Instability in Agricultural Trade

448

(4)

Export Boom and Bust

449

(1)

Moves toward Trade Liberalization

450

(2)

The Importance of Agricultural Trade

452

(3)

Increased Export Dependence

452

(1)

Greater Dependence on Imports

453

(1)

Farm and Nonfarm Impacts of Exports

454

(1)

The Composition of Agricultural Trade

455

(4)

The Role of Agricultural Exports

456

(1)

The Role of Agricultural Imports

456

(3)

Direction of U.S. Agricultural Trade

459

(6)

Emerging Export Market Trends

460

(1)

Key Regional Markets

460

(3)

Major Import Suppliers

463

(2)

U.S. Agricultural Trade Performance

465

(9)

The Balance of Trade

468

(6)

CHAPTER 20 EXCHANGE RATES AND AGRICULTURAL TRADE

474

(32)

Exchange Rates and the Foreign Exchange Market

475

(3)

Exchange Rates Defined

475

(1)

The Foreign Exchange Market

476

(2)

The Balance of Payments

478

(5)

The Current Account

479

(2)

The Private Capital Account

481

(1)

Official Settlements Account

481

(1)

The United States as a Debtor Nation

481

(2)

The International Monetary System

483

(6)

The Gold Standard and the Interwar Years

483

(1)

The Bretton Woods System

484

(2)

The Present International Monetary System

486

(2)

The European Monetary System

488

(1)

Exchange Rate Determination

489

(5)

Demand and Supply of Foreign Currencies

489

(1)

Relative Interest Rates

490

(2)

Changes in Relative Prices

492

(1)

Balance of Trade Impacts

492

(1)

The Role of Expectations

493

(1)

Exchange Rates and U.S. Agricultural Trade

494

(4)

Exchange Rate Indices

495

(1)

Exchange Rate Impacts on Prices

496

(1)

Exchange Rates and International Competition

497

(1)

Exchange Rates and Agricultural Policy

498

(1)

Considerations for Policy Coordination

498

(8)

Macroeconomic Policy Coordination

499

(1)

Domestic Agricultural Policy Coordination

500

(6)

CHAPTER 21 WHY NATIONS TRADE

506

(15)

Why Trade?

507

(7)

Absolute Advantage

508

(2)

Comparative Advantage

510

(2)

Factors Affecting Comparative Advantage

512

(1)

Comparative Advantage and Competitive Advantage

512

(2)

Gains from Trade

514

(7)

The Importance of Exchange and Specialization

514

(1)

Distribution of the Gains from Trade

515

(6)

CHAPTER 22 AGRICULTURAL TRADE POLICY

521

(27)

Trade and Welfare

522

(4)

Autarky or the Closed Economy

522

(1)

Trade and Partial Equilibrium

523

(2)

Welfare Gains from Trade

525

(1)

Why Restrict Trade?

526

(2)

Protectionism in Agriculture

526

(1)

Arguments against Trade

527

(1)

Trade Restrictions

528

(10)

Import Policies

529

(6)

Domestic Agriculture and Food Policies

535

(1)

Export Policies

536

(2)

Agricultural Trade Policy Making

538

(10)

The General Agreement on Tariffs and Trade

538

(2)

The United Nations Conference on Trade and Development

540

(1)

U.S. Agricultural Trade Policy Formulation

541

(7)

CHAPTER 23 EMERGING ISSUES IN AGRICULTURAL TRADE: THE FORMATION OF PREFERENTIAL TRADING ARRANGEMENTS

548

The Importance of Preferential Trading Arrangements

549

(1)

Forms of Economic Integration

550

(1)

Reasons for Preferential Trading Arrangements

551

(2)

Preferential Trading Arrangements and the GATT

551

(1)

Counter Economic and Political Power in Other Parts of the World

552

(1)

Reduce Side Effects

553

(1)

Foster Political Stability and Economic Prosperity

553

(1)

Do Preferential Trading Arrangements Create or Divert Trade?

553

(5)

Static Effects

554

(3)

Dynamic Effects

557

(1)

Provisions of the North American Free Trade Agreement

558

Amazon no longer offers textbook rentals. We do!

Introduction to Agricultural Economics

Introduction to Agricultural Economics

9780139011900

0139011900

Summary

Table of Contents

Supplemental Materials

Write a Review

Amazon no longer offers textbook rentals. We do!

Introduction to Agricultural Economics

Introduction to Agricultural Economics

9780139011900

0139011900

Summary

Table of Contents

Supplemental Materials

Write a Review

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