Agricultural Economics and Marketing Review

Agricultural Economics

The branch of economics that applies economic principles to the agricultural sector, dealing with the allocation of scarce resources for the production, processing, distribution, and consumption of food.

Macroeconomics

The study of the economy as a whole, focusing on aggregate measures such as national income, employment, inflation, and Gross Domestic Product (GDP).

Microeconomics

The study of individual consumers and firms, focusing on the supply and demand for goods and services in specific markets.

Opportunity Cost

The value of the next best alternative that is foregone when making a choice.

Diminishing Returns

The principle that as more of a variable input is added to a fixed input, the additional output (marginal product) produced will eventually decrease.

Ceteris Paribus

A Latin phrase meaning 'all other things being equal' used in economics to isolate the relationship between two variables.

Elasticity

A measure of responsiveness of the quantity demanded or supplied of a good to changes in its price, income levels or prices of related goods.

Market Equilibrium

The point at which the quantity of a good demanded by consumers equals the quantity supplied by producers, determining the market price.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service versus what they actually pay.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive.

Perfect Competition

A market structure characterized by a large number of small firms, all producing identical products, with no barriers to entry and perfect information.

Monopoly

A market structure where a single seller controls the entire market for a good or service, facing no competition.

Cooperative

An autonomous association of individuals united voluntarily to meet their common economic, social, and cultural needs through a jointly-owned and democratically-controlled enterprise.

Marketing Mix

The combination of product, price, place, and promotion strategies used by a business to market its goods and services.

Price Elasticity of Demand

A measure of the change in quantity demanded of a good when its price changes, holding all else constant.

Balance of Payments

A comprehensive record of all economic transactions between residents of a country and the rest of the world during a specific time period.

Inflation Rate

The percentage change in the general price level of goods and services over a period of time.

Economic Growth

The increase in the production of goods and services in an economy over time, typically measured by the growth rate of GDP.

Fiscal Policy

Government policies regarding taxation