Ag Econ Exam 1

Agribusiness

the cumulative total of all operations involved in the manufacturing and distribution of food/fiber supplies; the storage, processing, manufacturing, distribution, and consumption of food and fiber

Agribusiness Management

exploring how management affects food and fiber production and distribution through the whole supply chain

Dunning-Kruger effect

type of bias that occurs when people overestimate their abilities in a particular area

Economics

the study of choices and trade-offs that individuals and organizations make given the presence of scarcity

Common Market

“it’s not mine, so I don’t have to worry about replacing it”

Ag Econ

economics applied to agricultural sectors

Opportunity Cost

what we give up when we choose one thing over another

Specialization of Labor

addresses the way that a good or service is produced and divided into a number of tasks performed by different workers who are better at those specific tasks

Marginal Decision Making

decision making based on an additional unit of production or consumption

Marginal Cost

the additional cost of producing or consuming an additional unit

Marginal Benefit

the additional benefit of producing or consuming an additional unit

Sunk Cost

cost that has already been paid, or that you are obligated to pay regardless of the decisions made

Incentives

positive rewards given to chosen parties when they display a desired behavior

Incentived

positive rewards given ot chosen parties when they display a desired behavior

Disincentive

negative consequence for undesired behavior

Demand

the representation of the relationship between the price of a good/service and the quantity demanded for that good/service

Supply

the representation of the positive relationship between the price of a good/service and the quantity a producer is willing to produce/sell