Categories: Lesson Notes

SS 2 Third Term Agricultural Science Lesson Note – Basic Economic Principles and Factors of Production

The content is just an excerpt from the complete note for SS 2 Third Term Agricultural Science Lesson NoteBasic Economic Principles and Factors of Production. Check below to download the complete PDF

CLASS: SS 2

TOPIC: BASIC ECONOMIC PRINCIPLES AND FACTORS OF PRODUCTION

CONTENT:

  1. BASIC ECONOMIC PRINCIPLES
  2. FACTORS OF PRODUCTION

SUB TOPIC 1: BASIC ECONOMIC PRINCIPLES

Economics is a social science which studies human behavior 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:

  • wants
  • scarcity
  • choice
  • scale of preference
  • opportunity cost
  • law of diminishing return
  1. WANTS: These are goods and services desired after the basic needs have been satisfied. In agriculture, the wants include inputs needed for production services eg planting materials, fertilizers, chemicals, tools and implements, land for cultivation, livestock feeds etc
  2. SCARCITY: It is a term used to express that available commodity or service is limited in supply or not enough for those who demand for it. The limited nature of resources affects the production of crops and animals. This makes the farmers to make use of what they have.
  3. CHOICE: Choice arises because of scarcity of resources and is guided by economic decision. This is the point where farmer takes a decision on what to buy, how much to buy, where to buy, what to produce, where to plant etc. Every decision is a choice between alternative.
  4. SCALE OF PREFERENCE: It is a list or arrangement of human wants in order of their relative importance. The farmer has to choose from the list of his unlimited wants since resources to satisfy them are limited.
  5. OPPORTUNITY COST: When a man is faced with two alternatives, he will satisfy one and forgo the other, the one forgone is the opportunity cost of the one satisfied. The price of the one he enjoys is the one he fails to enjoy. This helps the farmer to allocate his scarce resources in deciding what to produce and which methods to adopt in producing it.

LAW OF DIMINISHING RETURN: It states that increase in the supply of variable factor (fertilizer) of production to a fixed factor (land) is to have marginal product (output) increase to a point where increase in the amount of variable factor will bring about decrease in marginal product. For example, if fertilizer application to a crop growing on a fixed area of land is increasing, the yield will increase at first. But it will reach a point when further addition of fertilizer will be increasing the yield at a diminishing rate.

To gain full access to the note: DOWNLOAD FILE

Sunday

Share
Published by
Sunday

Recent Posts

List of Universities Offering Veterinary Medicine in Nigeria

Veterinary medicine is the branch of medicine that deals with the prevention, diagnosis, and treatment…

3 months ago

List of Universities Offering Anthropology in Nigeria

Anthropology is the scientific study of human beings and their cultures. It encompasses a wide…

3 months ago

List of Universities Offering Sociology in Nigeria

Sociology is the scientific study of human society, culture, and behavior. It examines the social…

3 months ago

List of Universities Offering Social Work in Nigeria

Social Work is a profession dedicated to helping individuals, families, and communities to cope with…

3 months ago

List of Universities Offering Religious Studies in Nigeria

Religious studies is an academic discipline that explores the beliefs, practices, and history of various…

3 months ago

List of Universities Offering Public Administration in Nigeria

Public administration is the field of study and practice that focuses on the organization and…

3 months ago