AECON-221 Principles of Agricultural Economics and Farm Management New Syllabus 6th Dean’s

Objective

1. To aware the students about broad areas covered under agricultural Economics and farm management
2. To impart knowledge on judicious use of resources for optimum production

Theory

Economics: Meaning, scope and subject matter, definitions, activities, approaches to economic analysis; micro- and macro-economics, positive and normative analysis. Nature of economic theory; rationality assumption, concept of equilibrium, economic laws as generalization of human behavior. Basic concepts: Goods and services, desire, want, demand, utility, cost and price, wealth, capital, income and welfare. Agricultural economics: meaning, definition, characteristics of agriculture, importance and its role in economic development. Agricultural planning and development in the country.

Demand: meaning, law of demand, demand schedule and demand curve, determinants, utility theory; law of diminishing marginal utility, equi-marginal utility principle. Consumer’s equilibrium and derivation of demand curve, concept of consumer surplus. Elasticity of demand: concept and measurement of price elasticity, income elasticity and cross elasticity. Production: process, creation of utility, factors of production, input output relationship. Laws of returns: Law of variable proportions and law of returns to scale. Cost: Cost concepts, short run and long run cost curves. Supply: Stock v/s supply, law of supply, supply schedule, supply curve, determinants of supply, elasticity of supply. Distribution theory: meaning, factor market and pricing of factors of production. Concepts of rent, wage, interest and profit. National income: Meaning and importance, circular flow, concepts of national income accounting and approaches to measurement, difficulties in measurement. Money: Barter system of exchange and its problems, evolution, meaning and functions of money, classification of money, money supply, general price index, inflation and deflation. Economic systems: Concepts of economy and its functions, important features of capitalistic, socialistic and mixed economies, elements of economic planning. Forms of business organizations, international trade and balance of payments. GST and its implication on Indian economy.

Lecture Schedule: Theory

1. Economics: Meaning, scope and subject matter, definitions, activities, approaches to economic analysis; micro- and macro-economics, positive and normative analysis. 2
2. Nature of economic theory; rationality assumption, concept of equilibrium, economic laws as generalization of human behavior. 1
3. Basic concepts: Goods and services, desire, want, demand, utility, cost and price, wealth, capital, income and welfare. 2
4. Agricultural economics: meaning, definition, characteristics of agriculture, importance and its role in economic development. 2
5. Agricultural planning and development in the country. 2
6. Demand: meaning, law of demand, demand schedule and demand curve, determinants, utility theory; law of diminishing marginal utility, equi-marginal utility principle. 2
7. Consumer’s equilibrium and derivation of demand curve, concept of consumer surplus. 1
8. Elasticity of demand: concept and measurement of price elasticity, income elasticity and cross elasticity. 2
9. Production: process, creation of utility, factors of production, input output relationship. 2
10. Farm Management- Meaning, Definition, objective, its relationship with other sciences. Concept and Types of Production functions 1
11. Laws of returns: Law of variable proportions and law of returns to scale. 1
12. Cost: Cost concepts, short run and long run cost curves. 2
13. Supply: Stock v/s supply, law of supply, supply schedule, supply curve, determinants of supply, elasticity of supply. 2
14. Distribution theory: meaning, factor market and pricing of factors of production. Concepts of rent, wage, interest and profit. 2
15. National income: Meaning and importance, circular flow, concepts of national income accounting and Approaches to measurement, difficulties in measurement. 2
16. Money: Barter system of exchange and its problems, evolution, meaning and functions of money, classification of money, money supply, general price index, inflation and deflation. 2
17. Economic systems: Concepts of economy and its functions, important features of capitalistic, socialistic and mixed economies, elements of economic planning. 2
18. Forms of business organizations, international trade and balance of payments. GST and its implication on Indian economy. 2

Suggested Readings

1. Johl, S. S. and T. R Kapur. 2009. Fundamentals of Farm Business Management. Kalyani Publishers
2. S. Subha Reddy, P. Raghu Ram, T. V. Neelakanta and I. Bhvani Devi.2004. Agricultural Economics. Oxford & IBH publishing Co. Pvt. Ltd