Agricultural Economics And Marketing Introduction PDF

AGRICULTURAL ECONOMICS AND MARKETING INTRODUCTION ANDREW S. ARELLANO  DEFINI TIONS: Economics Microeconomics Macroeconomics Agricultural Economics Positive Economics Normative Economics 7/13/2024 PRESENTATION TI...

AGRICULTURAL ECONOMICS AND MARKETING INTRODUCTION ANDREW S. ARELLANO  DEFINI TIONS: Economics Microeconomics Macroeconomics Agricultural Economics Positive Economics Normative Economics 7/13/2024 PRESENTATION TITLE 2  ECONOMICS Economics is a social Basically, economics A scientific study whic h science that is in general is the deals with how concerned with the study and exercise of individuals and society means by which scarce choice (Michael generally make resources are used to c hoices. Individuals Todaro). satisfy competing ends and groups in society (Ferguson and Gould). have innumerable wants (Gerardo Sicat). 7/13/2024 PRESENTATION TITLE 3  ECONOMICS A social science that deals with the allocation of scarce resources to produce goods and services to satisfy unlimited human wants. 7/13/2024 PRESENTATION TITLE 4  The definition has four key concepts namely: 1 2 3 4 Human Goods and Resources Scarcity and Wants Services Choice. (commodities) 7/13/2024 PRESENTATION TITLE 5  MICROECONOMICS Deals with economic principles and methods relevant to a particular sector of the economy Deals with the problems and analysis of individual economic unit. 7/13/2024 PRESENTATION TITLE 6  MACROECONOMICS Studies the economy as a whole, i.e.economic aggregates and interrelationships between sectors. Deals with the problems of the whole economy and interrelationships of aggregate economic units. 7/13/2024 7  AGRICULTURAL ECONOMICS An applied field of economics concerned with the application of economic theory in optimizing the production and distribution of food and fiber products. Is a dynamic field of study that deals with the application of economics and business principles to real world problems in the production, distribution, and consumptions of food and fiber. 7/13/2024 8  POSI TIVE ECONOMICS Describes the facts and behavior of the economy. It only describes what it is. It does not indicate what is bad to the society. It simply provide results of economics analysis of a problem. Example: What will happen to rice production if budget for irrigation is increased by 15%? 7/13/2024 9  NORMATIVE ECONOMICS Involves ethics and value judgments. Prescribes what it ought to be. It makes distinction between good and bad. It prescribes what should be done to promote human welfare. Example: Should the government give money directly to the farmers? 7/13/2024 PRESENTATION TITLE 10 7/13/2024 PRESENTATION TITLE 11  Nature and Scope Relationship of Economics to other Social Science Basic Economic Problems Economics Goals  RELATIONSHIP OF ECONOMICS TO OTHER SOCIAL SCIENCES Economics and Physics - some of the laws in economics based on physical phenomena interrelating matter and energy Economics and Mathematics - economic theory and analysis make use of statistics, econometrics, calculus, and computer programming. Involved in the construction of graph and charts and in the tabulation of statistical data that economic studies often present. Economics and Biology – findings from biological studies greatly influence trends in the market, agricultural production and consumption. Economic and Sociology –Economic and Sociology are allied studies for both deals with the individual’s relation to society since society affects his or her behavior and way of life. 7/13/2024 PRESENTATION TITLE 13  Economics and History – Both deals with these struggles and subsequent progress. Economics and Ethics – Ethics is a science that as to do with the standards of right and wrong. It studies the moral ideals and the propriety of human behavior. In economics, ethics points out the right and wrong conducts. Economics and Civics – Civic problems are interrelated with economic problems. Deals with the problems of government maintaining a well- ordered society. Economics and Psychology – a definite relationship between economics and psychology. Psychology is the science of the human mind and motives. Like other social science, economics deals with human behavior, motivations, needs, wants, choices, and decision making. 7/13/2024 PRESENTATION TITLE 14 7/13/2024 15 7/13/2024 PRESENTATION TITLE 16 7/13/2024 PRESENTATION TITLE 17 7/13/2024 PRESENTATION TITLE 18 7/13/2024 PRESENTATION TITLE 19 7/13/2024 PRESENTATION TITLE 20 7/13/2024 PRESENTATION TITLE 21 7/13/2024 22 7/13/2024 23 7/13/2024 24 7/13/2024 25 7/13/2024 26 7/13/2024 27 7/13/2024 28 7/13/2024 29 7/13/2024 PRESENTATION TITLE 30 7/13/2024 PRESENTATION TITLE 31 7/13/2024 PRESENTATION TITLE 32  T YPES OF MARKET Perfect Competition Monopoly Oligopoly Monopolistic Competition Monopsony  PERFECT COMPETI TION There are many firms selling the identical product with no one firm large enough relative to the entire market to influence the market price. 7/13/2024 PRESENTATION TITLE 34  PERFECT COMPETI TION Homogeneity of the product Smallness of buyers and sellers relative to the market Absence of artificial restraint Mobility Perfect knowledge of the market 7/13/2024 PRESENTATION TITLE 35  MONOPOLY Is a market situation in which only one firm sells a product for which there is no good substitute 7/13/2024 PRESENTATION TITLE 36  OLIGOPOLY Is a market situation in which the number of sellers is small enough for the activities of one seller to affect the activities of the other and vice versa 7/13/2024 PRESENTATION TITLE 37  MONOPOLISTIC COMPETI TION Is a market situation in which there are many sellers of a particular product, but the product of each seller is in some ways differentiated from the product of every other sellers 7/13/2024 PRESENTATION TITLE 38  MONOPSONY A market situation in which there is only one buyer 7/13/2024 PRESENTATION TITLE 39 THANK YOU