Basic Economics
This phrase means "everything else remains constant".
What is ceteris paribus?
A change in the price of fertilizer would cause the supply curve of corn to ______.
What is a shift in the supply curve?
Price of substitute goods, price of complementary goods, consumer’s income, tastes and preferences, demographics, and expectations.
What are factors that shift the demand curve?
Those firms engaged in the production of raw food, fiber, and other agricultural products.
What is the producer sector?
This term in economics means "additional" or "incremental."
What is marginal?
In the lecture, supply and demand are the dog, and this is the tail.
What is price?
According to the law of demand, this is what happens to quantity demanded as price rises.
What is it falls (or decreases)?
This economic concept is demonstrated by diamonds being more valuable than water.
What is scarcity?
This exists at the disequilibrium (market not in equilibrium) price.
What is a surplus or shortage?
The social science that deals with the allocation of scarce resources among an unlimited number of wants.
What is economics?
Those firms that convert raw agricultural products into food products in the form that the consumer eventually buys.
What is the processor sector?
In this time period, all factors of production become variable; there are no fixed inputs.
What is the long run?
This logical fallacy translates as "after this, therefore because of this" — assuming that because B followed A, A must have caused B
What is post hoc fallacy?
The direction (positive or negative) of a supply curve's slope.
What is positive (upward sloping)?
The economic term used to describe the earnings forgone by attending college is ___.
What is an opportunity cost?
Market prices are determined by the interaction of ____ and ____.
What is supply and demand?
Inputs whose use rate changes as the output level changes
What are variable inputs?
Those firms that produce and distribute the goods and services that farmers buy as a part of their business activities.
What is the farm service sector?
The four classic inputs of production are land, labor, capital and ____.
What is management?
This logical fallacy assumes that what is true for an individual or a part must also be true for the whole or society
What is the fallacy of composition?
In this type of economic system, a central planning authority decides what is produced rather than free-market interaction.
What is a command economy?
"Demand" refers to the entire price-quantity relationship; this single-point concept refers to one specific quantity at one specific price
What is quantity demanded?
What is price and quantity?
This type of market structure has a large number of buyers and sellers, homogenous products, and suppliers are free to enter and exit the industry.
What is a perfectly competitive market?
The group of firms that distribute food products from processors to the final consumer when and where the consumer wants it.
What is the marketers sector?
The principle that as you add more of a variable input to a fixed input, output eventually increases at a decreasing rate.
What are diminishing returns?
Adam Smith's metaphor for the way self-interested individual decisions coordinate market outcomes without central planning.
What is the invisible hand?
This is the most predominant type of structure of most farming operations in the United States.
What is a family farm (non-corporate farm)?
Elasticity is a concept that deals with this component of a good.
What is price responsiveness?
At the equilibrium price in a market ______.
What is quantity demanded equals quantity supplied?
This is a measure of how much of an earning opportunities foregone by using a resource in its current employment this is also used by economists to establish an economic value for those resources that do not have an expressed market price.
What is an opportunity cost?
This sector of the food industry receives the majority for the price consumers pay for food bought in the grocery store.
What is the marketing sector?
Unlike accounting profit, this profit measure subtracts both explicit costs AND implicit opportunity costs — and is therefore almost always smaller.
What is economic profit?
In the facts / beliefs / values framework, this category captures what we think SHOULD be the case — as opposed to what we know (facts) or what we think is (beliefs)
What are values?
This is what causes a MOVEMENT ALONG a demand curve, as opposed to a SHIFT of the demand curve.
What is a change in the price of the good itself?