AGEC 2003 Exam 1 Topics

Click the card to flip 👆
1 / 22
Terms in this set (22)
the study of how people and society end up choosing, with or without the use of money, to employ scarce productive resources that could have alternative uses to produce various commodities and distribute them for consumption, now or in the future, among various persons or groups within society. Economics analyzes the costs and benefits of improving patterns of resource use"
Agribusinessincludes the sum total of all operations involved in the manufacture and distribution of farm supplies; production operations on the farm; and the storage, processing, and distribution of farm commodities and items made for themT/F Agribusiness includes some business operations pertaining to agriculture?False. ◦ Agribusiness includes all business operations pertaining to agriculture.T/F. There is little difference between the traditional agricultural economics degrees and agribusiness degrees at most Land Grant universities.TrueSo who can be considered part of the Agribusiness Sector?◦ Cattle Farmer ◦ Sugar Cane Farmer ◦ Crawfish Farmer ◦ Cargill ◦ ADM ◦ McDonalds ◦ International Paper ◦ JB HuntPositive Economics vs Normative EconomicsPositive Economics: is the branch of economics that describes the relationship between cause and effect Normative Economics: is a part of economics examining questions of what ought to bePositive and Normative ExamplesPositive Example: Government has imposed 10% sales tax Normative Normative Example: Government should impose 2% sales taxScarcityNature and mankind do not provide for unlimited amounts of any resource, good, or service. People generally do not have enough money to satisfy all of their wants or needs. Thus, people must economize in making decisions.Without ______, there would be no need for the study of economicsscarcityopportunity costthe cost associated with opportunities that are foregone when a firm's resources are not put to their highest-value useopportunity cost exampleConsider a firm that owns a building and therefore pays no rent for the office space. Opportunity cost is the forgone rent of utilizing the office space.ManagementThe process used to control or direct a situation.five basic steps of managerial decisionsObserving a problem & thinking about its solution. ◦ Analyzing with further observations. ◦ Making the decision. ◦ Taking action. ◦ Accepting responsibility