APPLIED ECONOMICS 202
AGRICULTURAL ECONOMICS
MWF 11:15-12:05 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 issues from production and land use to marketing, consumption, and government policy. 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 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 consumers and producers affects the utilization of natural resources in agriculture, and how governmental policies influence these relationships.
Required Text:
· Gwartney, James D. et al. Microeconomics: Private and Public Choice, Eleventh Edition, Thomson Southwestern, 2006.
Supplemental:
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. 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.”
Evaluation and Grading:
Criteria: Student grades will be determined by scores in three major performance areas: Individual Performance, Group Performance, and Group Maintenance.
Exams and Assignments: 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 and students will work in these same groups during class time throughout the semester. There will be in-class group learning activities and assignments on a regular basis with the same group grade given to all members of a group. Students will also be responsible for individually completing 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 unless prior arrangements are made with Dr. Espey. The midterm exams and comprehensive final exam will be comprised of short answer analysis of economic theory, problems similar to the homework problems, and multiple choice questions.
Grade Weights:
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Weight within area |
Percentage of Total |
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1. Individual Performance (70%) Individual Readiness Assessment Tests Homework Assignments Exams (two midterms and final)
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10 35 55* 100% |
7.0 24.5 38.5 |
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2. Group Performance (30%) Group Readiness Assessment Tests Group Application Assignments
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25 75 100% |
7.5 22.5 _____ 100% |
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3. Group Maintenance (used to weight group performance score) Evaluation by peers and Dr. Espey |
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Evaluating Group Maintenance: Each individual will rate the helpfulness of all the other members of their groups after the last class period. Peer Evaluation scores will be the average of the points received from the other members of one's group. Each individual will have a total number of points to distribute to his/her teammates equal to 10 times the number of other group members. 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 some of the ratings must be differentiated, that is, not all of the other members can be given a 10. These scores are then used to weight the overall group score for that portion of each student's grade. The Peer Evaluation scores will produce differences in grades only within groups. 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 individual and group assignments and the final exam.
Determination of Final Grades: The final grades are a weighted combination of the scores in each of the major performance areas (Individual and Group). The Individual Performance score is a weighted combination of the individual RATs, individual homework assignments, policy analysis paper, and final exam score. The Group Performance is a weighted average of the group RATs and group assignments, weighted by the Group Maintenance score.
Reading Assignments
Unit 1: Introduction and Supply and Demand
(Readiness Assessment Test – January 17)
Gwartney et al, Chapters 1-3
Applications (not on RAT) – Gwartney et al, Chapter 4
Unit 2: Consumer Demand Theory
(Readiness Assessment Test – February 5)
Gwartney et al, Chapter 7
Unit 3: Production and Cost Theory
(Readiness Assessment Test – February 26)
Gwartney et al, Chapter 8
Unit 4: Market Structure and Supply Elasticity
(Readiness Assessment Test – March 9)
Gwartney et al, Chapter 9, first 5 pages of Ch. 11, and Ch. 7 section on supply elasticity
Extensions (not on RAT): Gwartney et al Chapter 10 and the rest of Chapter 11
Unit 5: Natural Resource and Environmental Economics
(Readiness Assessment Test – April 11)
Gwartney et al Chapter 5 and Part 4 Special Topics 10 and 11
Each Readiness Assessment Test will cover the assigned readings for the designated section unless otherwise noted.
COURSE SCHEDULE:
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Jan. 10-12 |
Introduction
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Jan. 15-19 |
MLK Holiday Monday (1/15) RAT – Unit 1 Wednesday (1/17) Production Possibility Curves, Supply and Demand
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Jan. 22-26 |
Demand and Supply Applications
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Jan. 29-Feb. 2 |
Demand and Supply Applications continued
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Feb. 5-9 |
RAT – Unit 2 Monday (2/5) Consumer demand and elasticity
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Feb. 12-16 |
Consumer demand and elasticity continued
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Feb. 19-23 |
Midterm Exam 1 - Units 1-2 Friday (2/23)
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Feb. 26-Mar. 2 |
RAT – Unit 3 Monday (2/26) Production and Cost Theory
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Mar. 5-9 |
Production and Cost Theory RAT – Unit 4 Friday (3/9)
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Mar. 12-16 |
Market Structure Elasticity of Supply Competitive Markets
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Mar. 19-23 |
Spring Break! |
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Mar. 26-30 |
Competitive Markets continued
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Apr. 2-6 |
Monopoly Imperfect Competition Midterm Exam 2 - Units 3-4 Friday (4/6)
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Apr. 9-13
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RAT – Unit 5 Wednesday (4/11) Economics of Agriculture/Environment Interface
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Apr. 16-20 |
Economics of Agriculture/Environment Interface
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Apr. 23-27 |
Wrap Up and Review for Final |
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FINAL EXAM - Comprehensive Wednesday, May 2: 8:00 – 11:00 a.m. |
The weighting will be the higher of (a) 10% for each midterm and 35% for the final or (b) 55% for the final exam.
Spring 2007 Course list 
Ag Econ Home
2007 by Molly Espey, Professor, Department of Applied Economics & Statistics, Clemson University, Clemson, SC 29634-0313.