Dr. Michael Seipel
3082 Magruder Hall
785-4316 (Office)
mseipel@truman.edu
COURSE DESCRIPTION
An introduction to the study of agriculture as an economic system. Focuses on the application of basic economic principles to the understanding of producer and consumer decision-making within the food and fiber system.
COURSE OBJECTIVES
- To introduce to students basic micro- and macroeconomic principles, concepts, and analytical tools
- To provide students with a basic understanding of the economic structure of the food and fiber system -- its production and handling stages, pricing system, and competitive environment
- To illustrate how economic principles can be used to better understand producer and consumer decision making and resource allocation within the food and fiber system
- To build students' problem-solving and team-working abilities through group activities and oral and written presentation of ideas and concepts
John B. Penson, Jr., Oral Capps, Jr., and C. Parr Rosson III. 1999. Introduction to Agricultural Economics, Second Edition. Upper Saddle River, NJ: Prentice-Hall, Inc.
Reading assignments are given under the course outline. This schedule represents approximately the pace at which we should move through this material, but is subject to modification as the semester proceeds. Readings assigned for a particular day should be done before class that day, because this is the material that will be discussed in class that day.
BASIS OF STUDENT EVALUATION
| ITEM | POINTS POSSIBLE | PCT. OF FINAL GRADE |
| In-class exams | 100 pts. x 3 = 300 | 50% |
| Comprehensive final exam | 100 | 17% |
| Team Projects | 20 pts. x 5 = 100 | 17% |
| Quizzes | 10 pts. x 7 = 70 | 12% |
| Discussion and Class Participation | 30 | 5% |
All deadlines and examination dates must be met unless you make prior arrangements with the instructor and have a valid excuse from the Dean of Students. Material covered during class discussion periods is integral to the content of the course. Therefore, attendence at and participation in class sessions is expected and required, and will affect your grade through discussion and participation points. Final grades will be calculated on a straight scale (A= 90%+, B=80-89.9%, C=70-79.9%, D=60-69.9%, F=Below 60%).
COURSE OUTLINE
WEEK | TOPIC | READINGS | DUE |
1 | Introduction to Course | Chapter 1 | |
| Resources and Choices | Chapter 1, Appendix | |
2 | Agriculture in the Economy | Chapter 2 | |
| Changes in Food and Fiber System | ||
3 | Consumer Behavior; Utility Indifference Curves; Budget Constraint | Chapter 3 | Team Project 1 |
4 | Consumer Equilibrium Deriving the Demand Curve | Chapter 4 | |
5 | The Law of Demand | Chapter 4 | Exam 1 |
6 | Own-Price Elasticity Cross-Price Elasticity Income Elasticity | Chapter 5 | Team Project 2 |
7 | Total/Marginal Physical Product Output and Cost Concepts | Chapter 7 | |
8 | Revenue Concepts Profit-maximizing output level | Chapter 7 | |
9 | Mid-term Break | ||
10 | Input Substitution | Chapter 8 | Exam 2 |
11 | Economics of Product Substitution | Chapter 9 | |
12 | Forms of Competition Market Equilibrium in Perfect Competition | Chapter11, 10 | |
13 | Imperfect Competition Welfare implications of imperfect comp. | Chapter 11 | Team Project 3 |
14 | Agricultural Trade and Trade Policy | Chapter 19, 21 | |
15 | Agricultural Trade and Trade Policy (cont.) | Team Project 4 Exam 3 | |
16 | The Agricultural Business | Chapter 6 | |
17 | Team Project 5 Final Exam |
ASSIGNMENT INFORMATION
Team Projects
Students will work in teams of two to four persons to analyze a current situation in the food and fiber system using the concepts covered in class. Groups will discuss and analyze the situation in a small group format. Each group will write up and hand in their conclusions in a short paper (2 to 4 pages, typed, double-spaced). For selected projects (especially the final one of the semester) you will also present your findings to the class in a short presentation (approximately 10 minutes). Each team project assignment will be worth 20 points.
Homework Exercises
Homework exercises will be used to illustrate key concepts throughout the semester. Each exercise is worth ten points. You are encouraged to work together on these exercises, but be sure you understand the problem, and don’t just copy the answers from someone else.