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In Phase 2 of the model, the agricultural sector sees a rise in productivity and this leads to increased industrial growth such that a base for the next phase is prepared. In Phase 2, agricultural surplus may exist as the increasing average product (AP), higher than the marginal product (MP) and not equal to the subsistence level of wages. [6]
Agricultural economics is an applied field of economics concerned with the application of economic theory in optimizing the production and distribution of food and fiber products. Agricultural economics began as a branch of economics that specifically dealt with land usage. It focused on maximizing the crop yield while maintaining a good soil ...
The cobweb model or cobweb theory is an economic model that explains why prices may be subjected to periodic fluctuations in certain types of markets. It describes cyclical supply and demand in a market where the amount produced must be chosen before prices are observed.
A schematic diagram of the pork cycle. In economics, the term pork cycle, hog cycle, or cattle cycle [1] describes the phenomenon of cyclical fluctuations of supply and prices in livestock markets. It was first observed in 1925 in pig markets in the US by Mordecai Ezekiel and in Europe in 1927 by the German scholar Arthur Hanau . [2]
Agricultural science – broad multidisciplinary field that encompasses the parts of exact, natural, economic and social sciences that are used in the practice and understanding of agriculture. Agricultural economics – originally applied the principles of economics to the production of crops and livestock – a discipline known as agronomics ...
In agriculture, technology treadmill is the cycle of improving technology, reducing the cost of production, and increasing farm sizes. The technology treadmill theory was first described by Willard Cochrane in 1958 to explain the increasing land consolidation and ownership of farms and to show how the treadmill creates incentives for people to leave farming and become landowners.
The theory is complicated by the fact that surplus labour is both generated by the introduction of new productivity enhancing technologies in the agricultural sector and the intensification of work. The wage differential between industry and agriculture needs to be sufficient to incentivise movement between the sectors and, whereas the model ...
In business cycle theory and finance, any economic quantity that is positively correlated with the overall state of the economy is said to be procyclical. [2] That is, any quantity that tends to increase in expansion and tend to decrease in a recession is classified as procyclical.