12/26/2024 4:09:18 PM	AGBUS 7 Course Outline as of Fall 2014	Changed Course
CATALOG INFORMATION
Discipline and Nbr:  AGBUS 7	Title:  AG ECON
Full Title:  Agricultural Economics
Last Reviewed:9/24/2018

Units		Course Hours per Week			Nbr of Weeks	Course Hours Total
Maximum	3.00	Lecture Scheduled	3.00		17.5 max.	Lecture Scheduled	52.50
Minimum	3.00	Lab Scheduled	0		6 min.	Lab Scheduled	0
		Contact DHR	0			Contact DHR	0
		Contact Total	3.00			Contact Total	52.50
		Non-contact DHR	0			Non-contact DHR Total	0

Total Out of Class Hours:  105.00

Total Student Learning Hours: 157.50

Title 5 Category:  AA Degree Applicable
Grading:  Grade Only
Repeatability:  00 - Two Repeats if Grade was D, F, NC, or NP
Also Listed As: 
Formerly:  AG 7

Catalog Description:

Introduction to factors affecting demand and supply for food, fiber and agricultural inputs. Evaluating factors of productions, market structure, price system and their applications in agriculture. Examine local and federal policies and implications for agribusiness and trade.

Prerequisites/Corequisites:

Recommended Preparation:
Eligibility for ENGL 1A or equivalent and Course Eligibility for MATH 155

Limits on Enrollment:

Schedule of Classes Information
Description:

Introduction to factors affecting demand and supply for food, fiber and agricultural inputs. Evaluating factors of productions, market structure, price system and their applications in agriculture. Examine local and federal policies and implications for agribusiness and trade.

(Grade Only)
Prerequisites:
Recommended:Eligibility for ENGL 1A or equivalent and Course Eligibility for MATH 155
Limits on Enrollment:
Transfer Credit:CSU;UC.
Repeatability:00 - Two Repeats if Grade was D, F, NC, or NP

ARTICULATION, MAJOR, and CERTIFICATION INFORMATION

Associate Degree:		Effective:	Fall 1981	Inactive:
Area:	D	Social and Behavioral Sciences
CSU GE:	Transfer Area			Effective:	Inactive:
	D	Social Science		Fall 1997
	D2	Economics
IGETC:	Transfer Area			Effective:	Inactive:
CSU Transfer:	Transferable	Effective:	Fall 1981	Inactive:
UC Transfer:	Transferable	Effective:	Fall 1999	Inactive:
C-ID:
CID Descriptor: AG - AB 124	Agriculture Economics	SRJC Equivalent Course(s): AGBU7

Certificate/Major Applicable: Both Certificate and Major Applicable

COURSE CONTENT

Outcomes and Objectives:
At the conclusion of this course, the student should be able to:

Upon successful completion of this course, the student will be able to:

1. Discuss career opportunities and requirements for successfulemployment in agriculture.

2. Discuss the major components of the traditional circular flow diagram to describe the macro-operation of an economy.

3. Discuss the extent of the farm and food system in the United States and dimensions of American agriculture.

4. Evaluate the consumer's role in market demand for agricultural  products.

5. Discuss production and cost theory and the influence of  technological changes on firms producing basic commodities.

6. Computer graph and analyze utility maximization, market demand,  shifts of demand, cross elasticity, and income elasticity.

7. Define and discuss supply and the source of the market supply curve.

8. Identify changes and shifts in market supply.

9. Compute, graph, and analyze elasticity of supply.

10. Compute, graph, and analyze equilibrium and disequilibrium in the market.

11. Discuss the impact of a shift in supply and demand.

12. Identify and analyze basic economic concepts involved in profit maximization and in price determination, effective supply and demand.

13. Problem solve, graph, and analyze production costs, supply, and relationships in the agriculture business.

14. Discuss and analyze important problems such as chronic low price  and widely oscillating prices.

15. Discuss and analyze how economic concepts can be used to explain the most profitable amount of a product for the firm to produce.

16. Discuss and analyze how economic concepts can be used to explain the least-cost combination of inputs to use to produce a  specified level of an agricultural product; and the revenue  maximizing levels of two or more products with a limited amount of resources.

17. Discuss and explain competition and imperfect competition in the

        market.

18. Identify marketing channels for agricultural commodities.

19. Discuss marketing and government programs in agriculture.

20. Explain the role of natural and human resources in agriculture

        economic performance, growth, and development.

21. Discuss comparative advantage and international trade.

Topics and Scope

  I. Career Opportunities for Agribusiness Graduates

 II. Definition and Scope of Agriculture Economics

 III. The Farm and Food System

    A. Scope, health, and extent of production agriculture

        1. Business structure of farms

        2. Economic size classes of farms

        3. Vertical coordination and farmer cooperatives

        4. Farm output and agribusiness complex

    B. International trade in agricultural products

    C. Overview of an economic system

    D. Micro versus macroeconomics - basic assumptions

IV. Consumer Behavior and Demand

    A. Consumers/consumption

    B. Role of the consumer

    C. Motivation of consumer

    D. Trends in consumption

    E.. Income elasticity

 V. Input - Output Model

    A. Production Function

    B. Average and marginal physical products

    C. Stages of production

    D. Profit maximization

VI. Costs of Production

    A. Total, average, and marginal costs related to level of output

    B. Pure competition in production agriculture and resultant revenue functions

    C. Profit maximizing level of production for a pure competitor.

    D. Economics and diseconomics of size and scale.

VII. Input-Input Analysis

    A. Production surface

    B. Isoquants and marginal rate of substitution

    C. Isocosts and the negative inverse price ration

    D. Cost maximization

VIII.Output-Output Analysis

    A. Production possibilities curves

    B. Isorevenue functions

    C. Revenue maximization

IX. Concept of Supply

    A. Definitions of supply

    B. Source of the market supply curve

    C. Changes and shifts in market supply

    D. Elasticity of supply

 X. Market Price Determination

    A. Equilibrium in the market

    B. Disequilibrium in the market

    C. Impact of a shift in supply and demand

XI. Market Structure

    A. Competition and the market

    B. Imperfect competition and market regulation

    C. Antitrust laws and agricultural bargaining

XII. Market Channel Orientation

    A. Marketing agricultural commodities

    B. Approaches to the study of marketing

    C. Marketing margins

XIII.Solutions to the Farm Problem

    A. Orientation to cooperatives

    B. Marketing orders and government programs

XIV. Economic Agriculture and the Environment

    A. Natural resources used by agriculture

    B. Natural resources issues and resulting policy

XV.  Agriculture and the Global Economy

    A. Globalization and agriculture

    B. Interdependence and trade.

    C. Principle of comparative advantages

    D. Comparative advantage and trade

Assignments:

1. Problem sets (5)

2. Two term papers (3-5 pages each)

3. Analysis of agribusiness in the news (10 article reviews)

4. Two unit exams and final comprehensive exam

5.  Reading of approximately 30 pages per week

6.  Group presentations applying course concepts to the  local agribusiness industry ( using rubrics)

Methods of Evaluation/Basis of Grade.

Writing: Assessment tools that demonstrate writing skill and/or require students to select, organize and explain ideas in writing.		Writing 20 - 25%
Term papers, article analysis using rubrics
Problem solving: Assessment tools, other than exams, that demonstrate competence in computational or non-computational problem solving skills.		Problem Solving 20 - 30%
Problem sets
Skill Demonstrations: All skill-based and physical demonstrations used for assessment purposes including skill performance exams.		Skill Demonstrations 0 - 0%
None
Exams: All forms of formal testing, other than skill performance exams.		Exams 30 - 40%
Multiple choice, True/false, Matching items, Completion, Short answer, essay.
Other: Includes any assessment tools that do not logically fit into the above categories.		Other Category 10 - 20%
Group presentations using rubrics

Representative Textbooks and Materials:

Principles of Agricultural Economics. Barkley, Andrew and Barkley, Paul W.; Routledge Publisher, 2013

Agriculture Economics and Agribusiness. Cramer, Gail L. and Jensen, Clarence W.;  John Wiley and Sons Publishers, 2004 (classic).

Introduction to Agricultural Economics. Penson, Capps, Rossen, Woodward, Prentice Hall, 2013

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