33 - 1 Copyright McGraw-Hill/Irwin, 2002 Economics of Agriculture Effect of Output Changes on Farm Prices and Income Long-Run Farm Problem Economics of.

Slides:



Advertisements
Similar presentations
Copyright McGraw-Hill/Irwin, 2005 Economic Rent Determination of Land Rent Land Rent: A Surplus Payment Interest Loanable Funds Theory of Interest.
Advertisements

3 Web - 1 Copyright McGraw-Hill/Irwin, 2005 Changes in Supply and Demand Lettuce American Flags Pink Salmon Gasoline Sushi Preset Prices Nonpriced Goods.
McGraw-Hill/Irwin Copyright  2006 by The McGraw-Hill Companies, Inc. All rights reserved. POLITICS AND ECONOMICS: THE CASE OF AGRICULTURAL MARKETS POLITICS.
Principles of Microeconomics & Principles of Macroeconomics: Ch.8 First Canadian Edition Chapter 8 The Costs of Taxation Copyright (c) 1999 Harcourt Brace.
Chapter 15 APPLIED COMPETITIVE ANALYSIS Copyright ©2002 by South-Western, a division of Thomson Learning. All rights reserved. MICROECONOMIC THEORY BASIC.
Sources of Comparative Advantage
CHAPTER 14 Perfectly Competitive Markets: Short-Run Analysis.
International Trade Chapter 37 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Agriculture: Economics and Policy Chapter 19 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
EXCHANGE RATES, THE BALANCE OF PAYMENTS, AND TRADE DEFICITS 38 C H A P T E R.
8 - 1 Copyright McGraw-Hill/Irwin, 2002 Economic Growth The Business Cycle Unemployment Inflation Redistributive Effects of Inflation Anticipated Inflation.
8 - 1 Copyright McGraw-Hill/Irwin, 2002 Economic Growth The Business Cycle Unemployment Inflation Redistributive Effects of Inflation Anticipated Inflation.
Copyright McGraw-Hill/Irwin, 2002 The Rich and the Poor Growth, Decline, and Income Gaps Overpopulation Impact Upon Development Capital Accumulation.
Copyright McGraw-Hill/Irwin, 2002 Growth Economics Production Possibilities Analysis Supply Determinants of Real Output Growth in the AD-AS Model.
Chapter 8 notes.
McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Politics and Economics: The Case of Agricultural Markets Chapter 19.
Copyright McGraw-Hill/Irwin, 2002 Public Choice Theory Government Failure Apportioning the Tax Burden Tax Applications Tax Incidence and Efficiency.
Copyright McGraw-Hill/Irwin, 2005 Public Goods Demand for a Public Good Optimal Amount of a Public Good Cost-Benefit Analysis Spillover Costs and.
Demand and Supply Elasticity
19 Agriculture: Economics and Policy McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright McGraw-Hill/Irwin, Inc Economics of Agriculture Effect of Output Changes on Farm Prices and Income Long-Run Farm Problem Economics.
Copyright 2008 The McGraw-Hill Companies 23-1 Some Key Facts The Economic Basis for Trade Supply and Demand Analysis of Exports and Imports Trade Barrier.
Public Choice Theory and the Economics of Taxation Chapter 17 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
The Balance of Payments, Exchange Rates, and Trade Deficits Chapter 38 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights.
INTERNATIONAL TRADE Pertemuan 25 Matakuliah: J0114-Teori Ekonomi Tahun: 2009.
Chapter 8 The Costs of Taxation Ratna K. Shrestha.
Copyright McGraw-Hill/Irwin, 2002 Legislative Mandate Fiscal Policy and the AD-AS Model Expansionary and Contractionary Fiscal Policy Financing.
Copyright McGraw-Hill/Irwin, 2002 The Health Care Industry Quality of Care Limited Access Increasing Demand for Health Care Role of Health Insurance.
Lecture 2 – Global Trends in Agriculture EconS350 Fall Semester, 2010.
40 Web- 1 Copyright McGraw-Hill/Irwin, 2005 Ideology and Institutions Planning Goals and Techniques Collapse of the Soviet Economy Russian Transition.
Copyright McGraw-Hill/Irwin, 2002 U.S. Export Transaction U.S. Import Transaction Balance of Payments Flexible Exchange Rates The Market for Currency.
INTERNATIONAL TRADE 37 C H A P T E R Export Partners Canada 13%, Mexico 8%, China 4%, Japan 3% Import Partners China 15.4%, Canada 11.6%, Mexico, 9.1%,
Copyright 2008 The McGraw-Hill Companies 27-1 Rich and Poor Obstacles to Economic Development Capital Accumulation Vicious Circle of Poverty Role of Government.
Web Ch. - 1 Copyright McGraw-Hill/Irwin, 2002 Ideology and Institutions Planning Goals and Techniques Collapse of the Soviet Economy Russian Transition.
Copyright 2008 The McGraw-Hill Companies 24-1 Some Key Facts The Economic Basis for Trade Supply and Demand Analysis of Exports and Imports Trade Barrier.
Taxation & Government Intervention
Chapter 8 The Costs of Taxation. Objectives 1. Understand how taxes reduce consumer and producer surplus 2. Learn the causes and significance of the deadweight.
8 - 1 Copyright McGraw-Hill/Irwin, 2005 Economic Growth The Business Cycle Unemployment Inflation CPI Redistributive Effects of Inflation Anticipated.
1 of 17 Principles of Microeconomics: Econ102. Price & Income instability results from:  An inelastic demand for agricultural products  Very low price.
The Business Cycle Chapter 8 Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
# McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. International Trade and Exchange Rates 20.
Government Intervention in the Market. Government Intervention in the Market The Control of Prices.
Copyright McGraw-Hill/Irwin, 2005 The Health Care Industry Quality of Care Limited Access Increasing Demand for Health Care Role of Health Insurance.
Public Choice Theory and the Economics of Taxation Chapter 17 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright 2008 The McGraw-Hill Companies 23-1 Some Key Facts The Economic Basis for Trade Supply and Demand Analysis of Exports and Imports Trade Barrier.
Copyright McGraw-Hill/Irwin, 2002 Price Elasticity of Demand Price Elasticity and Total Revenue Determinants of Price Elasticity of Demand Price.
Chapter 17 Public Choice Theory and the Economics of Taxation
Copyright McGraw-Hill/Irwin, 2002 Four Market Models Demand as seen by a Purely Competitive Seller Short-Run Profit Maximization Marginal Revenue.
Effect of a tax on price and quantity S + tax S O P1P1 Q1Q1 D P Q.
Chapter 14 Government Spending, Taxation, and the National Debt: Who Wins and Who Loses? Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights.
Copyright 2008 The McGraw-Hill Companies 19-1 Economics of Agriculture Economics of Farm Policy Economics of Price Supports Reduction of Surpluses Politics.
Agriculture: Economics and Policy Chapter 20 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior.
Copyright McGraw-Hill/Irwin, 2002 Price Elasticity of Demand Price Elasticity and Total Revenue Determinants of Price Elasticity of Demand Price.
Copyright 2008 The McGraw-Hill Companies 17-1 Public Choice Theory Government Failure Apportioning the Tax Burden Tax Incidence Incidence of U.S. Taxes.
Copyright © 2006 Thomson Learning 8 Application: The Costs of Taxation.
The Balance of Payments, Exchange Rates, and Trade Deficits Chapter 38 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights.
Copyright McGraw-Hill/Irwin, 2002 Public Goods Demand for a Public Good Optimal Amount of a Public Good Cost-Benefit Analysis Spillover Costs and.
Macro Review Day 5. International Trade Policy, Comparative Advantage, and Outsourcing 9 Balance of Trade Trade deficit = exports < imports Trade surplus.
McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved The Farm Problem Chapter 29.
Copyright 2008 The McGraw-Hill Companies 35-1 Some Key Facts The Economic Basis for Trade Supply and Demand Analysis of Exports and Imports Trade Barrier.
Copyright McGraw-Hill/Irwin, 2002 Key Facts of Trade Economic Basis For Trade Comparative Advantage Production Possibilities Trading Possibilities Lines.
Copyright 2008 The McGraw-Hill Companies 36-1 Financing International Trade Capital and Financial Account Flexible Exchange Rates Fixed Exchange Rates.
McGraw-Hill/Irwin Copyright  2008 by The McGraw-Hill Companies, Inc. All rights reserved. TAXATION AND GOVERNMENT INTERVENTION TAXATION AND GOVERNMENT.
AGRICULTURE: ECONOMICS AND POLICY
THE BALANCE OF PAYMENTS,
Chapter 19 Agriculture: Economics and Policy McGraw-Hill/Irwin
Agriculture: Economics and Policy
AGRICULTURE ECONOMICS AND POLICY
Agriculture: Economics and Policy
Presentation transcript:

Copyright McGraw-Hill/Irwin, 2002 Economics of Agriculture Effect of Output Changes on Farm Prices and Income Long-Run Farm Problem Economics of Farm Policy Economics of Price Supports Effect of Price Supports Criticism, Politics, and Reform Key Terms Previous Slide Next Slide End Show AGRICULTURE ECONOMICS AND POLICY 33 C H A P T E R

Copyright McGraw-Hill/Irwin, 2002 Economics of Agriculture Effect of Output Changes on Farm Prices and Income Long-Run Farm Problem Economics of Farm Policy Economics of Price Supports Effect of Price Supports Criticism, Politics, and Reform Key Terms Previous Slide Next Slide End Show ECONOMICS OF AGRICULTURE Short Run Problem: Price and Income Instability Inelastic Demand for Agricultural Products Fluctuations in Output Fluctuations in Demand Unstable Foreign Demand

Copyright McGraw-Hill/Irwin, 2002 Economics of Agriculture Effect of Output Changes on Farm Prices and Income Long-Run Farm Problem Economics of Farm Policy Economics of Price Supports Effect of Price Supports Criticism, Politics, and Reform Key Terms Previous Slide Next Slide End Show EFFECT OF OUTPUT CHANGES ON FARM PRICES AND INCOME PpPp PnPn PbPb QpQp QnQn QbQb Small changes in quantity produced... D Make large changes in farm prices

Copyright McGraw-Hill/Irwin, 2002 Economics of Agriculture Effect of Output Changes on Farm Prices and Income Long-Run Farm Problem Economics of Farm Policy Economics of Price Supports Effect of Price Supports Criticism, Politics, and Reform Key Terms Previous Slide Next Slide End Show EFFECT OF OUTPUT CHANGES ON FARM PRICES AND INCOME P1P1 P2P2 QnQn Small changes in demand... D1D1 Make large changes in farm prices D2D2

Copyright McGraw-Hill/Irwin, 2002 Economics of Agriculture Effect of Output Changes on Farm Prices and Income Long-Run Farm Problem Economics of Farm Policy Economics of Price Supports Effect of Price Supports Criticism, Politics, and Reform Key Terms Previous Slide Next Slide End Show Long Run Problem: A Declining Industry Technology and Supply Increases Population Growth Agribusiness Income-Inelastic Demand Graphically... ECONOMICS OF AGRICULTURE

Copyright McGraw-Hill/Irwin, 2002 Economics of Agriculture Effect of Output Changes on Farm Prices and Income Long-Run Farm Problem Economics of Farm Policy Economics of Price Supports Effect of Price Supports Criticism, Politics, and Reform Key Terms Previous Slide Next Slide End Show P1P1 Demand Increases... D2D2 D1D1 S1S1 Q1Q1 LONG-RUN FARM PROBLEM

Copyright McGraw-Hill/Irwin, 2002 Economics of Agriculture Effect of Output Changes on Farm Prices and Income Long-Run Farm Problem Economics of Farm Policy Economics of Price Supports Effect of Price Supports Criticism, Politics, and Reform Key Terms Previous Slide Next Slide End Show P2P2 P1P1 Are Offset by Larger Supply Increases D2D2 D1D1 S1S1 S2S2 Q1Q1 Q2Q2 Technology causes supply to increase even more thereby reducing farm prices LONG-RUN FARM PROBLEM

Copyright McGraw-Hill/Irwin, 2002 Economics of Agriculture Effect of Output Changes on Farm Prices and Income Long-Run Farm Problem Economics of Farm Policy Economics of Price Supports Effect of Price Supports Criticism, Politics, and Reform Key Terms Previous Slide Next Slide End Show Ethiopia Mozambique China India Brazil Russia Japan France Germany United States GLOBAL PERSPECTIVE Percentage of Labor Force in Agriculture, Selected Nations Source: International Labour Office

Copyright McGraw-Hill/Irwin, 2002 Economics of Agriculture Effect of Output Changes on Farm Prices and Income Long-Run Farm Problem Economics of Farm Policy Economics of Price Supports Effect of Price Supports Criticism, Politics, and Reform Key Terms Previous Slide Next Slide End Show ECONOMICS OF FARM POLICY Rationale for Farm Subsidies Agricultural Adjustment Act of 1933 Parity Concept Parity Ratio Prices received by farmers Prices paid by farmers Parity Ratio =

Copyright McGraw-Hill/Irwin, 2002 Economics of Agriculture Effect of Output Changes on Farm Prices and Income Long-Run Farm Problem Economics of Farm Policy Economics of Price Supports Effect of Price Supports Criticism, Politics, and Reform Key Terms Previous Slide Next Slide End Show ECONOMICS OF PRICE SUPPORTS Surplus Output Gain to Farmers Loss to Consumers Resource Overallocation Other Social Losses Environmental Costs International Costs

Copyright McGraw-Hill/Irwin, 2002 Economics of Agriculture Effect of Output Changes on Farm Prices and Income Long-Run Farm Problem Economics of Farm Policy Economics of Price Supports Effect of Price Supports Criticism, Politics, and Reform Key Terms Previous Slide Next Slide End Show EFFECT OF PRICE SUPPORTS PePe D S QeQe QcQc QsQs Surplus PsPs Surplus being created by the subsidies Q P Price Support Level

Copyright McGraw-Hill/Irwin, 2002 Economics of Agriculture Effect of Output Changes on Farm Prices and Income Long-Run Farm Problem Economics of Farm Policy Economics of Price Supports Effect of Price Supports Criticism, Politics, and Reform Key Terms Previous Slide Next Slide End Show ECONOMICS OF PRICE SUPPORTS Reduction of Surpluses Restricting Supply Acreage Allotment Programs Bolstering Demand New Uses Domestic and Foreign Demand

Copyright McGraw-Hill/Irwin, 2002 Economics of Agriculture Effect of Output Changes on Farm Prices and Income Long-Run Farm Problem Economics of Farm Policy Economics of Price Supports Effect of Price Supports Criticism, Politics, and Reform Key Terms Previous Slide Next Slide End Show CRITICISM, POLITICS, AND REFORM Misguided Subsidies Policy Contradictions Symptoms, Not Causes The Politics of Farm Policy Public Choice Theory Changing Politics Declining Political Support World Trade Considerations

Copyright McGraw-Hill/Irwin, 2002 Economics of Agriculture Effect of Output Changes on Farm Prices and Income Long-Run Farm Problem Economics of Farm Policy Economics of Price Supports Effect of Price Supports Criticism, Politics, and Reform Key Terms Previous Slide Next Slide End Show CRITICISM, POLITICS, AND REFORM Recent Reform Freedom to Farm Act 1996 Transition Payments Expected Outcomes Emergency Aid Chapter Conclusions

short-run farm problem long-run farm problem agribusiness parity concept parity ratio price supports acreage allotments Freedom to Farm Act ENDBACK Copyright McGraw-Hill/Irwin 2002

Copyright McGraw-Hill/Irwin, 2002 Economics of Agriculture Effect of Output Changes on Farm Prices and Income Long-Run Farm Problem Economics of Farm Policy Economics of Price Supports Effect of Price Supports Criticism, Politics, and Reform Key Terms Previous Slide Next Slide End Show Next: Income Inequality & Poverty Chapter 34

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.