AEC 101, ECO 201. A comprehensive study of economic principles and management tools useful in farm and agribusiness decision making. Utilizes a systems approach to the planning, implementation and control of the agricultural business. Specific attention to application of management and decision theory, economic principles used in decision making, and risk management strategies. Emphasis on planning the future course of the business, acquiring and managing the necessary resources, and establishing physical and financial control over the business.
Lab incorporates microeconomic applications of management principles developed in lectures.
Emphasis on the development of theoretical models of production and consumption economics and application of these models to problems. The importance of concepts marginality to managers and consumers is emphasized. Role of risk and uncertainty in resource allocation is outlined. This course addresses the concern that U.S. farmers and the food industry are increasingly affected by macroeconomic forces and general conditions in the national economy. Interdependencies between agriculture, farm size, rural economic well-being and key macroeconomic variables including interest rates, foreign exchange rates, and the rate of inflation will be examined.