Agricultural Economics point wise notes for competitive Exams, Part-1

  • Agricultural economics is an application of the principles of economics for solving agricultural problems and to maximise agricultural productions.
  • Agricultural Marketing includes all the operations involved in the movement of agricultural goods and raw materials from the point of production to the Final consumer.
  • Agricultural finance is an economic study of acquisition and use of the farm business.
  • Asset is an entity possessing market or exchange value and farming of wealth or property of the owner.
  • Average product is defined as the Ratio of total product to total inputs used for it product. It is expressed as-

Ap = Tp/TQ = Total product / Total input used

  • Average Revenue is the revenue per unit of output, if output is denoted by X and total revenue by R then, AR = R/X; Since total revenue will consist of price X quantity (Px) then AR = Px/x = P
  • Average total cost refers to the average of all costs (fixed plus variable) per unit output.
  • AVC means Average Variable Cost that is refers to total variable cost per unit of output.
  • When the Farm plan is made for one year only and its account is maintained annually, such Planning is called as Annual Planning.
  • Agricultural Labour is such farmers who are landless and having no any landed Property.
  • Barter refers to a system of exchange value and forming of wealth or property of the owner.
  • Budget Period is that period to which a Budget relates which is normally a year.
  • Broker is that person who renders personal source to their clients in the market.
  • Bias is the degree to which the expect value of an estimator differs from the true Parameter value.
  • Bankrupty is a legal proceeding under which the property of an insolvent debt is taken for the benefit of his creditors. Generally in the UK, control of bankrupt’s property is initially in the person of the official receiver who is an officer of the court. Subsequently a trustee is appointed and it is his duty to realize the property and to distribute it among the creditors in proportion to their claims and in accordance with certain priorities laid down by the law ultimately the bankrupt may be granted a discharge which subject to certain exceptions releases him from his past debt and liabilities.
  • Binary variables is a variable which can only take two value that is 0 and 1, normally use to account for quantitative or non – quantitative influences in regression analysis.
  • Credit refers to the trust in borrower’s ability to re pay and willingness to repay.
  • Capital in the produced means of production. It is man made factor consists of physical Goods and money which can be used for further production.
  • Cost is the expense incurred on production can marketing of a commodity.
  • Cash flow is the sum of retained earnings and depreciations provision made by firms. As such it is the source of internally generated long term funds available to the company.
  • Cost of Production is the cost on per Quintal of output.
  • Co operation is a voluntary organisation of people meant for satisfying their economic interest.
  • Consumption is the use of Goods and Services for the satisfaction of Human wants. Consumption is also known as destruction of utility.
  • Casual labourers is the labourers appointed at certain periods when there is rush of work and they are employed to complete that work. The wages are paid on the basis of the days he has worked.
  • Contract labourers is the labourers that are given the contract job to complete certain jobs, for example At the Harvesting, Sowing, etc. The wages are paid on the basis of completion of the Job.
  • Co-operative Farming is a system under which all the Agricultural operation or part of them are carried on jointly by the farmers on a Voluntary basis, each farmer retaining the right on his own land. The farmers would pool their land, labour and capital. The land would be treated as one unit and cultivated jointly under the direction of elected management.
  • In collective farming, members of collective surrender their land, livestock and deadstock to admit other members of required qualification. The members work together under a management committee elected by themselves.
  • Capitalist farming is that type of farming which is based on capitalistic method where landlordism exists as in America or England. The role of capital is more, wages labour use is more than family labour under this farming.
  • Competitive Market is a market in which a very large number of small buyers and seller trade independently and as such no other trader can significantly influences price.
  • Deflation is a sustained fall in a general price level and A proportionate rate of decrease of the general Price level per unit of time.
  • Demand is the desire backed b wiliness and ability to pay.
  • Dupoly is a market having any two sellers of a commodity.
  • Duopsony is a market situation in which there are only two buyers of a commodity.

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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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