AP EC 202: AGRICULTURAL & APPLIED ECONOMICS
Fall 2006. Section 1, 10:10-11:00 a.m. MWF, 174 P&AS Bldg

MWF 10:10-11:00                                                                    Office: 263 Barre Hall
Dr. Molly Espey                                                                       Phone: 656-6401
mespey@clemson.edu

The objective of this course is for students to learn how basic economic theory can be used to understand and analyze agricultural input and output markets. The assigned readings will familiarize students with key concepts in economic theory. Class activities and assignments will primarily focus on how these concepts can be used to analyze and understand “real world” agricultural markets, including related land use and environmental issues. Through completion of this course, students will better understand how economic forces influence the behavior of both consumers and producers, how the behavior of producers affects the utilization of natural resources and other input markets, and how governmental policies influence these relationships.

Required Texts:

•  Gwartney, James D. et al. Microeconomics: Private and Public Choice, Eleventh Edition , Thomson Southwestern, 2006.

•  Thurman, Walter N. Assessing the Environmental Impact of Farm Policies , AIE Studies in Agricultural Policy, The AEI Press, 1995.

Supplemental:

• Study Guide for Microeconomics: Public and Private Choice, Eleventh Edition , Thomson Southwestern, 2006.
• Espey, Molly. "Workbook APEC 257: Natural Resources, the Environment, and Economics" is available online at: http://www.sc.edu/sustainableu/Espey257test.pdf

Short additional required readings will be provided throughout the course. Reading of economic press such as The Wall Street Journal and The Economist is also recommended to provide background in current microeconomic issues.

Office Hours:

Feel free to talk with me any time I am in the office. I teach MWF 11:15-12:05 and MW 3:30-4:45 so will NOT be available during those times. You may also make an appointment with me or communicate via email.

From the Office of Student Disability Services:

“It is University policy to provide, on a flexible and individualized basis, reasonable accommodations to students who have disabilities. Students are encouraged to contact Student Disability Services to discuss their individual needs for accommodation.”

Grading: Student grades will be determined by performance in three major areas:

Preparation : There will be five short, multiple choice, true-false Readiness Assessment Tests (RATs) given during the semester, one at the beginning of each unit. The same RAT will be given to individuals then to groups. Groups will be formed by Dr. Espey.

Practice : In class group activities will be assigned on a regular basis with the same group grade given to all members of a group. There will also be seven to ten homework problem sets involving the application of theory discussed in class which will be due at the beginning of the designated class dates. Late assignments will be marked down 10 percent and will not be accepted more than one class period late. There will also be several additional optional assignments that will allow students to learn new topics and hone their skills of economic analysis.

Performance: A comprehensive final exam will be comprised of short answer analysis of economic theory, problems similar to the homework problems, and multiple choice questions.

In order to pass this course, students must have attained a basic level of knowledge of key economic concepts and how to apply the basic tools of economic analysis to a variety of situations. This will be demonstrated by earning at least 70% of the points possible on the comprehensive final exam. In order to pass this course with a grade above a D, the following requirements must be met:

Group Participation: Evaluation of group participation will be comprised of two parts, (1) group scores on RATs and other group assisgnments and (2) peer evaluations. Group scores will be weighed equally between RATs and other assignments. For peer evaluations, each individual will rate the other members of his/her group at the end of the semester. Individual peer evaluation scores will be the average of the points received from the other members of the group. Each individual will have a total number of points to distribute to his/her teammates equal to 10 times the number of group members not counting the evaluator. For example, if there are six members in a group, each student has 50 points to assign to the other five members of the group. At least two of the ratings must be differentiated; that is, one may not give all of the other members a 10. The group scores will be weighted by the peer evaluation score to determine a group participation score for each individual. As a result, group members can't help everyone in their group get an A by giving them a high peer evaluation score. The only way for everyone in the group to earn an A is by doing an outstanding job on the group assignments and for all members to be active, productive group members. "Satisfactory group participation" will be scores that are at least 80% of the class average group participation score. "Active, regular group participation" scores must be at least 90% of the class average.

Reading Assignments

Unit 1: Introduction and Supply and Demand
                 (Readiness Assessment Test - August 28)
Gwartney et al, Chapters 1-3
Applications (not on RAT) – Thurman Chapter 1
Gwartney et al, Chapter 4

Unit 2: Consumer Demand Theory
                 (Readiness Assessment Test – September 15)
Gwartney et al, Chapter 7

Unit 3: Production and Cost Theory
                (Readiness Assessment Test – October 6)
Gwartney et al, Chapter 8

Unit 4: Market Structure and Supply Elasticity
               (Readiness Assessment Test – October 20)
Gwartney et al, Chapter 9, Ch. 11 (p. 236-242), and Ch. 7 section on supply elasticity
Extensions (not on RAT): Gwartney et al Chapter 10 and the rest of Chapter 11

Unit 5: Agriculture, Natural Resources, and the Environment
              (Readiness Assessment Test – November 10)
Gwartney et al Chapter 5 and Part 5 Topics 10 and 11
Applications (not on RAT) – Thurman Chapter 2 (8-13) and chapters 3-5

Each Readiness Assessment Test will cover the assigned readings for the designated section unless otherwise noted.

COURSE SCHEDULE:

Note: This syllabus is preliminary and is subject to change. The syllabus distributed in class is the official version.

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2006 by Molly Espey, Professor, Department of Applied Economics & Statistics, Clemson University, Clemson, SC 29634-0355

updated 10/25/06