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Agricultural Economic Notes

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Agricultural Economic Notes

AGRICULTURE & ENVIRONMENTAL SCIENCES DEPARTMENT AGRICULTURAL ECONOMICS
TOPIC 1 INTRODUCTION TO ECONOMICS
Economics-a social science that deals with how the society chooses to allocate scarce productive resources with alternative uses to produce goods and services for use. The satisfaction of wants can only be accomplished by using resources.
Production economics-A branch of economics that deal with the study of how resources are combined in production to produce goods and services in a cost effective but profitable way. It deals with sets of choices faced by producers in the production process.

TYPES OF ECONOMICS
a. Micro economics-is a type of economics that deals with the study of economic activities at individual levels. It studies the behavior or decisions made by individual farmers in their attempt to allocate resources in the production of goods
b. Macroeconomics-is a branch of economics that deals with the study of economic activities at national levels. It is concerned with total interaction of producers and consumers in a society, nationally and globally in production. It also deals with the role of the government in production goods and services.
c. Positive economics-It studies and explains how the economic situation or phenomena of a nation are. It focuses on the facts and uses them in describing causes and effects of an existing economic situation of a nation. It explains why the economy operates in a particular way.
d. Normative economics- Is a method of study that looks at how the economy should be/ought to be. It is based on policies, opinions and judgments. It looks at good and bad policies, right and wrong causes of action in an economy. It cannot be scientifically testified.
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