AEC 5111 – Fundamentals of Agricultural Economics

AEC 5111 – Fundamentals of Agricultural Economics


1. Economics: Meaning, scope and subject matter, definitions,

2. Activities approaches to economic analysis; micro and macro economics.

3. Basic concepts: Goods and services, desire, want, demand, utility, cost and price, wealth, capital, income and welfare. Agricultural economics: meaning, definition, characteristics of agriculture, importance and its role in economic development.

4. Agricultural planning and development in the country. Demand: meaning, law of

5. Demand, demand schedule and demand curve, determinants, utility theory,

6. Law of diminishing marginal utility, equi-marginal utility principle.

7. Consumer’s equilibrium and derivation of demand curve, concept of consumer surplus.

8. Elasticity of demand: concept and measurement of price elasticity, income elasticity and
cross elasticity.

9. Production: process, creation of utility, factors of production,

10. Supply: Stock v/s supply, law of supply,

11. Distribution theory: meaning, factor market, and pricing factors of production.

12. Concepts of rent, wage, interest and profit.

13. National income: Meaning and importance, circular flow, concepts of national income

14. Approaches to measurement, difficulties in measurement. Population: Importance, Malthusian and Optimum population theories, natural and socio-economic determinants,

15. Current policies and programmes on population control.

16. Money: Barter system of exchange and its problems, evolution, meaning and functions of

17. Classification of money, money supply, general price index, inflation and deflation.

18. Banking: Role in modern economy, types of banks,

19. Public finance, public revenue and public expenditure.

20. Tax: meaning, direct and indirect taxes, agricultural taxation,

21. VAT. Economic systems: Concepts of economy and its functions, important features of
capitalistic, socialistic and mixed economies, elements of economic planning

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