Course profile
Department of Agricultural Economics
Course code: AE 1103 Course title: Agricultural Economics
Credit: 02 Contact hours: 32 Level: 1 Semester: 1
I. Rationale
This course aims at studying basic and introductory economic concepts on diverse set of
issues of individual’s and firms’ decision making.
II. Course Learning Outcomes (CLO)
CLO1: Explain the nature and scope of economics and agricultural economics
CLO2: Illustrate consumers and producers choices, preferences and behavior
CLO3: Discuss theory of market and agricultural marketing
CLO4: Explain different functions of banking and insurance
CLO5: Evaluate different concepts of measurement of national income, economic
growth and development
III. Mapping CLO with PLO
CLO/ PLO PLO1 PLO2 PLO3 PLO4 PLO5 PLO6 PLO8 PLO9
CLO1
CLO2
CLO3
CLO4
CLO5
IV. Course Content
Course content Alignment CLO No. of
lectures
Nature and Scope of Agricultural Economics:
Definitions, Branches of economics and scope of CLO 1 2
economics and agricultural economics.
Consumers and Producers Behavior
Utility Analysis of Demand: Meaning of utility, total
utility and marginal utility, law of diminishing marginal
utility, relationship between total utility and marginal
utility.
Indifference Curve Analysis: Indifference curve,
indifference map, marginal rate of substitution (MRS),
budget line, explain consumer’s equilibrium, Iso-product
CLO 2 19
curve, marginal rate of technical substitution (MRTS), Iso-
cost line, Producers equilibrium and optimum factor
combination.
Demand, Supply and Equilibrium of the Farm: Demand
and law of demand, demand schedule, demand curve,
exceptions to the law of demand, reasons for downward
sloping demand curve, extension and contraction of
demand, increase and decrease in demand. State supply
Course content Alignment CLO No. of
lectures
and law of supply, supply schedule and supply curve,
explain factors affecting shift in and change in the demand
and supply curves, determine market equilibrium with the
help of demand & supply curve.
Elasticity of Demand: Definition of Elasticity and its
classification, Different types of price elasticity of
demand, Geometric measurement of elasticity, Problems
and solutions.
Factors of Production and Their Application in
Agriculture: Production, Factors of production (Land,
labour, capital and organization). Concepts of production
function, stages of production and evaluate the rationale
zone of production.
Cost & Revenue Concepts: Different cost and revenue
concepts, relationship of different cost curves (AC & MC),
equilibrium of the farm with the help of total revenue &
total cost curve.
Market and Agricultural Marketing: Definition and
classification of market, market equilibrium under perfect
competition. Agricultural marketing, characteristics of CLO 3 4
agricultural products, problems in agricultural marketing.
Banking and Insurance: Concept of bank and banking,
Functions of central, commercial and specialized bank
CLO 4 3
(Krishi and Grameen Bank) in Bangladesh, Concept of
insurance and its use in agriculture.
National Income: Concepts of national income (NI),
Measurement of NI, Difficulties of measuring NI.
Economic Growth and Development: Meaning of
CLO 5 4
growth & development, explain the characteristics of
developing countries, role of agriculture in economic
development of Bangladesh.
V. Teaching Strategy
Class lecture, group discussion, and assignment.
VI. Assessment Strategy
Question and answer, quiz, and classroom test.
References
Ahuja, H. L. (1977). Advanced Economic Theory, S. Chand & Company Ltd., Ram Nagar,
New Delhi-110055.
Chandler, L. V: Economics of Money & Banking, Harner and Row, London.
Dewett, K. K. (2005). Modern Economic Theory, S. Chand & Company Ltd., Ram Nagar,
New Delhi-110055.
Ferguson, C. E., and Gould, J. P. (1975). Microeconomic Theory, Fourth Edition, Richard D.
Irwin Inc. Illinois.
Hirshleifer, J. (1976). Price Theory and Applications, Prentice/Hall International, London.
Mankiw, N. G. (2004). Principles of economics (3rd ed., Mason OH: Thomson / South-
Western,). ISBN: 0-324-20309-8.
Samuelson. P. A. and Nordhaus, W. D. (1989). Economics, 13th Edition, McGraw Hill
International Edition, Singapore.
Varian, H. R. (2006). Intermediate Micro Economics, A Modern Approach, Seventh Edition,
W. W. Norton & Company, New York, London.