Agricultural Economics point wise notes for competitive Exams, Part-2

  • Inelastic Demand =A big change in price followed only by a small change in demand.
  • Farm = A farm refers to a piece of land having specified boundaries where crops of livestock,etc.,are raised under a common management . A farm may include self-owned land as well as the leased in land.
  • Farm management = It is a science which deals with judicious decisions on the use of scarce farm resources having alternative uses of obtain maximum profit and family satisfaction on continuous basis from the farm as a whole under sound farming programme .
  • Farm Profit = Farm profit in the net income in excess of cost of production.
  • Farm Planning= It is the process of deciding in the present, what to do in the future about the best combination of crops and live stocks to be raised through rational use of resources.
  • Farm Budgeting =It is defined as a process of estimating cost returns and the net profit of a farm or a particular farm enterprise.
  • Fixed cost = These are the costs which do not change in magnitude as a quantity of output of the production process change and are incurred even when production is not undertaken , such as land rent, chokidar, meterrent , etc .
  • Farmer = It includes an individual or a group of individuals, co – operatives or companies engaged in farming. In the latter two cases, entities or distinct from the membership constituting them.
  • Farming = Activities based on the piece or prices of land , a part of whole of which is developed to raise crops and livestock and any other related activities
  • Function = A mathematical formalisation of the relationship whereby the values of a set of independent variables determine the values of the dependent variable.
  • Factors of production = the resource of society used in the process of production. These are usually divided into three main groups land, labour and capital but may also include entrepreneurship.
  • Farm Executive = Farm executive is a person who carious out the orders of management.
  • Flow Resources = these are some resources, if their services are not used, these cannot be stocked such as labour.
  • Firm One independent decision making unit.
  • Farm power = The main sources of power for agriculture are human labour, draught animals and machines.
  • Goods= Goods refer to the thinks that satisfy human wants.
  • Gross Interest = Gross interest in the total amount, (principle +interest) which the borrower pays to the lender for the use of capital.
  • Gross Farm Income =Gross farm income is the total value of Maine products , by-products , wastes, income from custom hiring etc. before subtracting any expense.
  • Grading = Grading refer to the sorting of the unlike lots of the produce in to different lots according to the quality specifications laid down.
  • Grant = Funds provided by some agencies or individuals to other agencies or individuals which do not form part of some exchanges but represent a one way transfer payment Grants may be paid by one level of government to another from government bodies to private groups or individuals to other private groups . A grant may be a “general grant “ which is available for any type of expenditure or a selective grant tied to specified uses . Grants may also constitute some proportion of the recipient’s total expenditure or may be non-matching grants which are not determined by the recipient’s expenditures.
  • Human Labour Day = Eight hours of work by an individual may be treated as one human Labour Day.
  • Homogeneous Product = When the commodities or services supplied by economic agents in a given market have attribute combinations which are identical in the eyes of buyers, the product is said to be homogeneous.
  • Harvest Price = Harvest price is the price at which the farmers sell their grains during the harvesting season. The farmers may sell in large or small lots to wholesalers, processing’s mill, etc. at the local market.
  • Hedging = Hedging is executing opposite sales or purchase in the future market to offset the purchase or sales of physical products made in the cash market
  • Income = the amount of money which the resource yielded during a given time is called income.
  • Industry = All farm producing similar products taken tighter is called industry.
  • Indirect Tax = it is one which is imposed on the person by impact of the tax falls on the other.
  • Iso – revenue Line = It reflects the different combinations of two products which give the same amount of revenue.
  • Iso-cost line = It shows all possible combinations which can be purchased, given the outlay of founds.
  • Iso – quant = Iso-quant refers to the combinations of various inputs resulting in the same quantity of output.
  • Investment = Additional capital purchased for the firm during a specified time period normally a year.
  • Implicit Cost =Implicit cost is the money value of those inputs which are supplied by the farmer himself.
  • Import = A good or service consumed in one country which has been bought from another country. A visible import is a service.
  • Individual Farming = Farmers follow the agriculture practice in their own way and the farmer himself is manager organiser of his farm and entire family of the farmer helps is making decision. The main objective is to fulfil the family need and not maximisation of the profit .About 70/. Indian farmers have been practising this farming system. Land tax is paid to the state Government By the farmer.
  • Joint Farming = Here two or more than two farmers carry out the agricultural operations jointly by pooling their agricultural resources and lastly divide the produce according to the previous fixed ratio.
  • Joint Price = Amoral criterion of the value of a commodity, price that is judged morally correct. The term is associated with the medieval school men and particularly St. Thomas acquires. A just price is an equity concept based on natural justice and unlike the market price play no allocate role.



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It is Arpan Priy Das from west champaran, Bihar. Arpan started his blog about agricultural information named as “ECOHILLAGRI.COM ” He started his blog to help many agricultural or other students as well as farmers. so, it is necessary for them to learn about agriculture that is useful for students as well as farmers and that all concepts are present in this blog.

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