Basic Economic Principles

Agricultural science S.S.S 2 Third Term.

Week 5

Basic Economic Principles

Performance objectives.   

Students should be able to:

1. List the basic economic principles.
2. Discuss the basic economic principles.

Content.

Basic economic principles.

Economics is a social science which studies human behaviour as a relationship between ends and scarce means which have alternative uses. It deals with production, distribution, exchange (marketing) and consumption of agricultural goods.

Basic Economics principles include;

1. Wants.
2. Scarcity.
3. Choice.
4. Scale of preference.
5. Opportunity cost.
6. Law of diminishing returns.

 

1. Wants;

These are goods and services desired after the basic needs have been satisfied. In agriculture, the wants includes inputs needed for production services e.g. planting materials, fertilizers, chemicals, tools and implements, land for cultivation, livestock feeds, etc.

2. …