Lecture 1 Flashcards
Agricultural Production Sub-System
Grains
High value commercial crops
Traditional export commodities
livestock and poultry
Fishery
The agricultural production system consists of various subsystems
which interact dynamically within given
biophysical and socio-economic constraints
It varies according to
Biological
Chemical
Physical
Geologic
Social relations
Economic prospects
Sources of productivity
Technology
Technical Efficiency
Allocative Efficiency
Scale Efficiency
consists of alternative methods of transforming factors to goods
Technology
Physical efficiency, ability of farm to produce maximum output
Technical efficiency
Price efficiency, ability to use the right proportion of inputs
Allocative Efficiency
degree to which a firm is optimizing the size of operations
Scale efficiency
issues in agricultural production
dependent on natural resources
access to prod unputs and natural factors
Production inefficiency
Poverty incidence
gaps in institutional functions
study of how to allocate scarce resources in producing agricultu outputs
agricultural production economics
study of how to allocate scarce resources in producing agricultu outputs
agricultural production economics
2 branches of micro economics
Consumption
Production
Overall goals of APE
attain goals
most efficient use of agricultural resources
no fixed, nonaugmentable, physical relationship, marginal analysis
Neoclassical approach
analysis of trchnology, using mathematical theory,
Modern approach
