Agricultural Economics point wise notes for competitive Exams, Part-3

LIABILITIES =Liabilities are outside claims such as bills or itemise lists of different individuals or firms to whom the famers owe money.

Long Term Loan = Long term loan is that type of lone which is advanced for the purchase of long life assets such as heavy machinery , land and land reclamation which require large service of money for initial investment . The normal repayment period for a long term loan usually ranges from 5 to 15 years.

Land = According to Marshall land refers the materials and force which nature gives for man said includes soil and water in air and heat. In short, it is matters which man can neither create not destroy.

Law of Diminishing Returns = Beyond a certain level of output , when successive units of variable input are added to a fixed quantity of other outputs the addition to total product caused by each successive unit of variable inputs  ultimately declines.

Law of Equi- marginal Return = the principle states that resources should be used where they bring out the greatest average return but at the greatest marginal returns.

Localisation= Localisation is the seclusion or division of labour in a particular industry.

Law of Sopply = If price increase supply will also increase and if price falls, supply will also fall, other things remaining constant.

Law of Demand= When the price falls, demand expands and when the price rises, demand contracts.

Land Development Bank= It is called mortgage bank, first mortgage bank was set up in 1920 at Jhang but real  beginning started by the establishment of Central land mortgage bank in 1929 at Madrrasfor centralising the issue of debentures and for co-ordinating the working of primary land development bank in the state.

MARKET= any place where persons are in intimate business relations and carry on extensive transactions in any commodity.

Micro – economics= It studies economic actions of individual firms and groups of individuals.

Macro – economics= It explains the level of total production and why that level rises and falls.

It deals with aggregates and an average of the entire economy.

Monopsony = When there is only one buyer of a product.

Monopoly Market = It is a market situation in which there is one seller of a commodity which does not have close substitutes.

Monopolistic Competition = Monopolistic competition refers to a market situation in white a large number of sellers deal in heterogeneous and differentiated forms of a commodity.

Marginal Product = It is defined as the quantity with which added unit of variable inputs, adds to the total product.

Mechanisation = Mechanisation refers the use of power operated machines to do various agricultural operations like , irrigation , ploughing, sowing , harvesting in the place of human and animal power.

Mixed Crop= when two or more than two crops are grown together on the same piece of land at the same time.

Mixed Farming = Mixed farming is a combination of crop production with a significant amount of livestock raising, i. e. crops, dairying and poultry.

Marketing cost = It is the cost of performing the various marketing function and operating various agencies.

Money = Money refers to anything which is widely accepted in payment for goods or in discharge of other kinds of obligations.

Minimum Support Price = It is fixed by the Government .at the recommendations of the commission for agriculture costs and prices and are announced at the beginning of the sowing season of a crop. These prices act as a guarantee to the farmers.

Market Share= the proportion of total market sales accounted for by one firm. It has been argued that the maintenance of market share an important objective of firms in oligopolistic market structures.

Net profit= that portion of total profits which remains after the deduction of taxation payments and depreciation provisions.

Net Investment= The addition to economy‘s total capital stock, i. e. the amount of investment minus net of depreciation

Non cash cost= these cost consist of depreciation and payment to resources owned by the farmers.

Normal Profits= that minimum amount of profit which a firms must acquire in order to induce the firm to remain in operation. This is where all opportunity cost are just covered by total revenue and there force corresponds to a zero level of profits.

Net Farm Income = It shows the remuneration for the farmers management and is computed by deducting all fixed and variable costs from the gross income.

Output = Output consists of all farm products raised during a particular period.

Ownership Holding =Operational holding refers to the area of agricultural land owned by a farmer belonging to same family with permanent heritable rights, jointly.

Oligopoly = Oligopoly is a market situation in which there are only few sellers of a commodity.

Oligopsony= It is a market having few buyers of a commodity.

Opportunity Cost= Opportunity cost is the cost of next best alternative foregone.

Operational Holding = Operational holding is defined as the area  of agricultural land owned plus leased in mortgaged in with possession minus leased out mortgaged out land with possession by the farmer .

Parabola= Usually in economics, U- shaped, or inverted U-shaped graph of a quadratics equation.

Price Effect = The change in the demand for a good that comes about because of a change in the price of that good. It is composed of the incomes offset and the substitution effect.

Production = production is a process of transformation of certain resource or inputs into output.

Production Function = It is a level of output of a particular commodity that depends upon the quantities of input used for its production. This relationship between input and output is called production function.

Price = Price is an exchange value of goods which is expressed in terms of money.

Parity Price = Parity price refers to one that will buy the same quantity of other products as it would during some specific base period.

Price Stabilisation = Price stabilisation refers to the prevention of violent fluctuation in the price at both lower and upper levels.

 

 

 

 

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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 ecohillagri.com 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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