Cover --
Title --
Copyright --
Contents --
Part one Introduction --
1 What Is Agricultural Economics? --
Scope of Economics --
Scarce Resources --
Making Choices --
Definition of Economics --
Microeconomics versus Macroeconomics --
Positive versus Normative Economics --
Alternative Economic Systems --
Definition of Agricultural Economics --
What Does an Agricultural Economist Do? --
Role at Microeconomic Level --
Role at Macroeconomic Level --
Marginal Analysis --
What Lies Ahead? --
Summary --
Key Terms --
Testing Your Economic Quotient --
References --
Graphical Analysis --
2 The U.S. Food and Fiber Industry --
Indices --
What is the Food and Fiber Industry? --
Changing Complexion of Farming --
Physical Structure --
Specialization, Diversification, Organization, and Contracting --
Productivity --
Profitability --
Financial Structure --
Other Sectors in the Food and Fiber Industry --
Farm Input Suppliers --
Food Processors, Wholesalers, and Retailers --
Value-Added Process --
Fiber Manufacturers --
Shippers and Handlers --
Importance of Export Markets --
Summary --
Key Terms --
Testing Your Economic Quotient --
References --
Part two Understanding Consumer Behavior --
3 Theory of Consumer Behavior --
Utility Theory --
Total Utility --
Marginal Utility --
Law of Diminishing Marginal Utility --
Indifference Curves --
Concept of Isoutility --
Marginal Rate of Substitution --
The Budget Constraint --
Summary --
Key Terms --
Testing Your Economic Quotient --
Reference --
4 Consumer Equilibrium and Market Demand --
Conditions for Consumer Equilibrium --
Changes in Equilibrium --
Changes in Product Price --
Changes in Other Demand Determinants --
The Law of Demand --
Market Demand --
Interpretation of Market Demand --
Tastes and Preferences --
Composition of the Population --
Attitudes toward Nutrition and Health --
Food Safety --
Lifestyles Technological Forces --
Advertising and Promotion --
Consumer Surplus --
Summary --
Key Terms --
Testing Your Economic Quotient --
Reference --
5 Measurement and Interpretation of Elasticities --
Own-Price Elasticity of Demand --
Income Elasticity of Demand --
Cross-Price Elasticity of Demand --
Other General Properties --
Some Real-World Examples --
Applicability of Demand Elasticities --
Applicability to Policymakers --
Applicability to Farmers --
Applicability to Consumers --
Applicability to Input Manufacturers --
Applicability to Food Processors and Trade Firms --
Summary --
Key Terms --
Testing Your Economic Quotient --
References --
Part three Business Behavior and Market Equilibrium --
6 Introduction to Production and Resource Use --
Conditions for Perfect Competition --
Classification of Inputs --
Land --
Labor --
Capital --
Management --
Important Production Relationships --
The Production Function --
Total Physical Product Curve --
Marginal Physical Product Curve --
Average Physical Product Curve --
Stages of Production --
Assessing Short-Run Business Costs --
Total Costs and the TPP Curve --
Average Costs and the APP Curve --
Marginal Costs and the MPP Curve --
Economics of Short-Run Decisions --
Marginal and Average Revenue --
Level of Output: MC = MR --
Level of Resource Use: MVP = MIC --
What Lies Ahead? --
Summary --
Key Terms --
Testing Your Economic Quotient --
7 Economics of Input and Product Substitution --
Concept and Measurement of Isoquants --
Rate of Technical Substitution --
The Iso-Cost Line --
Least-Cost Use of Inputs for a Given Output --
Short-Run Least-Cost Input Use --
Effects of Input Price Changes --
Least-Cost Input Use for a Given Budget --
Long-Run Expansion of Input Use --
Long-Run Average Costs --
The Long-Run Planning Curve --
Economics of Business Expansion --
Capital Variable in the Long Run Concept and Measurement of the Production Possibilities Frontier --
Production Possibilities Frontier --
Product Substitution --
Concept and Measurement of the Iso-Revenue Line --
Profit-Maximizing Combination of Products --
Choice of Products in the Short Run --
Effects of Change in Product Prices --
Summary --
Key Terms --
Testing Your Economic Quotient --
Reference --
8 Market Equilibrium and Product Price: Perfect Competition --
Derivation of the Market Supply Curve --
Firm Supply Curve --
Market Supply Curve --
Own-Price Elasticity of Supply --
Producer Surplus --
Market Equilibrium Under Perfect Competition --
Market Equilibrium --
Total Economic Surplus --
Applicability to Policy Analysis --
Adjustments to Market Equilibrium --
Market Disequilibrium --
Length of Adjustment Period --
Cobweb Adjustment Cycle --
Summary --
Key Terms --
Testing Your Economic Quotient --
9 Market Equilibrium and Product Price: Imperfect Competition --
Market Structure Characteristics --
Number of Firms and Size Distribution --
Product Differentiation --
Barriers to Entry --
Economic Environment --
Classification of Firms --
Imperfect Competition in Selling --
Monopolistic Competition --
Oligopoly --
Monopoly --
Comparison of Alternative Market Structures --
Welfare Effects of Imperfect Competition --
Imperfect Competition in Buying --
Monopsony --
Oligopsony and Monopsonistic Competition --
Market Structures in Livestock Industry --
Governmental Regulatory Measures --
Legislative Acts --
Ceiling Price --
Lump-Sum Tax --
Minimum Price --
Summary --
Key Terms --
Testing Your Economic Quotient --
References --
Part four Government in the Food and Fiber Industry --
10 Natural Resources, the Environment, and Agriculture --
Agriculture and the Environment --
Water Pollution --
Air Pollution --
Global Climate Change --
Other Environmental Impacts Economics of the Environment --
Efficient Property Rights --
Efficiency and Externalities in Agriculture --
Environmental Policies --
The Economics of the Resources of Agriculture --
Soil Quality and Quantity --
The Economics of Soil Conservation --
Characteristics of Soil --
Discounting and Present Value Analysis --
The Present Value of Soil Resources --
Practice: The Dust Bowl --
Water as an Economic Asset --
Government Policies for Agriculture, Natural Resources, and the Environment --
Soil Erosion Policies and the Conservation Reserve Program --
Other Federal Incentive Programs for Agricultural Conservation --
Environmental Regulations --
The Endangered Species Act --
Summary --
Key Terms --
Testing Your Economic Quotient --
References --
11 Government Interventionin Agriculture --
Rationale for Government Intervention --
Farm Economic Issues --
Historical Perspective on the Farm Problem --
Forms of Government Intervention --
Consumer Issues --
Adequate and Cheap Food Supply --
Nutrition and Health --
Food Safety --
Food Subsidies --
Historical Support Mechanisms --
Loan Rate Mechanism --
Set-Aside Mechanism --
Target Price Mechanism --
Countercyclical Payments Mechanism --
Conservation Reserve Mechanism --
Commodities Covered by Government Programs --
Phasing Out of Supply Management --
Domestic Demand Expansion Programs --
Importance of Export Demand --
Summary --
Key Terms --
Testing Your Economic Quotient --
References --
Part five Macroeconomics of Agriculture --
12 Product Markets and National Output --
Circular Flow of Payments --
Barter Economy --
Monetary Economy --
Composition and Measurementof Gross Domestic Product --
Consumption, Savings, and Investment --
Determinants of Planned Consumption --
Determinants of Planned Saving --
Determinants of Planned Investment --
Equilibrium National Income and Output --
Aggregate Expenditures The Keynesian Cross --
Deriving Aggregate Demand Curve --
Aggregate Supply and FullEmployment --
Recessionary and Inflationary Gaps --
What Lies Ahead? --
Summary --
Key Terms --
Testing Your Economic Quotient --
References --
13 Macroeconomic Policy Fundamentals --
Characteristics of Money --
Functions of Money --
Money versus Near Monies --
Backing of Money --
Federal Reserve System --
Organization of the Federal Reserve System --
Functions of the Federal Reserve System --
Monetary Policy Instruments --
Changing the Money Supply --
Creation of Deposits --
Monetary Policy and the Money Supply --
Money Market Equilibrium --
Demand for Money --
Equilibrium Conditions --
Effects of Monetary Policy on the Economy --
Transmission of Policy --
Combating Recessionary Gaps --
Combating Inflationary Gaps --
Microeconomic Perspectives --
The Federal Budget --
Federal Expenditures --
Federal Receipts --
Budget Deficit --
The National Debt --
National Debt and GDP --
Ownership of National Debt --
Burdening Future Generations? --
Fiscal Policy Options --
Automatic Policy Instruments --
Discretionary Policy Instruments --
Fiscal Policy and Aggregate Demand --
Combating Recessionary Gaps --
Combating Inflationary Gaps --
Summary --
Key Terms --
Testing Your Economic Quotient --
References --
14 Consequences of Business Fluctuations --
Fluctuations in Business Activity --
Nature of Business Fluctuations --
Indicators of Economic Activity --
Consequences of Business Fluctuations --
Unemployment --
Inflation --
Short-Run Phillips Curve --
Macroeconomic Policy Options --
Laissez-faire Macroeconomic Policy --
Demand-Oriented Macroeconomic Policy --
Supply-Oriented Macroeconomic Policy --
Summary --
Key Terms --
Testing Your Economic Quotient --
References --
15 Macroeconomic Policy and Agriculture --
A Historical U.S. Perspective --
The Big Five --
Rate of Inflation
16 agricultural trade and exchange rates
17 why nations trade
18 agricultural trade policy and preferential trading