The information contained on this page is designed to give students a representative example of material covered in the course. Any information related to course assignments, dates, or course materials is illustrative only. For a definitive list of materials, please check the online catalog 3-4 weeks before the course start date.

 

AGBM 101 (GS)

Economic Principles of Agribusiness Decision Making (3) Introduction to economic principles and their application to real-world examples of agribusiness management issues

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Overview

There are three parts to the course.

Part I: Market Systems, Market Equilibrium, and Consumer Demand

The course begins by examining the "big picture" to explain how producers and consumers interact to resolve their conflicting desires in a market, and how free markets benefit society. We first look at how markets function and how prices are determined in food and agricultural settings. We are particularly interested in how responsive consumers and producers are to price changes. Part 1 ends with coverage of the consumer's problem of maximizing his or her well-being on a limited budget.

Part II: Focus on Producers and Other Key Players in a Market

Producers attempt to maximize profits. By investigating the market from producers' perspectives, we can answer producer questions of what and how much to sell. After we master these questions for a simple case, we reintroduce the consumer and add more complications, which reflects the real world more accurately.

Part III: Special Markets and Topics

We will first cover factors of production generally, and then we will cover special cases of labor and natural resources. We will also investigate agricultural policy, international trade, and other special topics.

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Course Objectives

At the end of this course, you will better understand the following seven basic economic concepts:

1. Cost-Benefit Analysis

• After summing up all costs and all benefits, proceed with deciding whether benefits outweigh costs.

2. Incremental Reasoning/Marginal Analysis

• Your decision makes good economic sense if the incremental (extra) revenue exceeds the incremental cost.
• This type of analysis is limited to one-unit changes in revenue, cost, or profit.
• Profits are maximized when marginal revenue = marginal cost.

3. Diminishing Marginal Utility/Productivity

• As utility/productivity declines, apply the next unit of input to the activity that gives the greatest return.

4. Opportunity Cost

• This is the net revenue possible from doing something else.

5. Market Equilibrium

• Market supply and demand are based on decisions by many individual firms and consumers.
• Market price is determined jointly by supply and demand.

6. Time Perspective on Costs and Revenues

• Consider short-run versus long-run benefits: seek maximum long-run profit.
• Time is money: future revenue and costs must be discounted.

7. Comparative Advantage

• Produce what you do best and trade for the rest.

You will also better understand how to apply economics to decision making in the food, agriculture, and agribusiness sectors, including the following areas:

• foreign trade
• federal government price and income policies
• price and income risk management
• management of the environment

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Required Course Materials

Most World Campus courses require that students purchase materials (e.g., textbooks, specific software, etc.). To learn about how to order materials, please see the Course Materials page. You should check LionPATH approximately 3–4 weeks before the course begins for a list of required materials.

 

Using the Library

Many of the University Libraries resources can be utilized from a distance. Through the Libraries website, you can

• access magazine, journal, and newspaper articles online using library databases;
• borrow materials and have them delivered to your doorstep—or even your desktop;
• get research help via email, chat, or phone using the Ask a Librarian service; and
• much more. 

You must have an active Penn State Access Account to take full advantage of the Libraries' resources and service.  The Off-Campus Users page has additional information about these free services.

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Technical Requirements

Technical Requirements

Operating System	Canvas, Penn State's Learning Management System (LMS), supports most recent versions of Microsoft Windows and Apple Mac operating systems.  To determine if your operating system is supported, please review Canvas' computer specifications.
Browser	Canvas supports the last two versions of every major browser release. It is highly recommended that you update to the newest version of whatever browser you are using. Please note that Canvas does not support the use of Internet Explorer. Students and instructors should choose a different browser to use.    To determine if your browser is supported, please review the list of Canvas Supported Browsers. Note: Cookies must be enabled, and pop-up blockers should be configured to permit new windows from Penn State websites.
Additional Canvas Requirements	For a list of software, hardware, and computer settings specifically required by the Canvas LMS, please review Canvas' computer specifications.
Additional Software	All Penn State students have access to Microsoft Office 365, including Microsoft Office applications such as Word, Excel, and PowerPoint. Students will need a PDF reader, such as Adobe Reader.
Hardware	Monitor: Monitor capable of at least 1024 x 768 resolution Audio: Microphone, Speakers Camera (optional, recommended): Standard webcam - many courses may require a webcam for assignments or exam proctoring software.
Mobile Device (optional)	The Canvas mobile app is available for versions of iOS and Android. To determine if your device is capable of using the Canvas Mobile App, please review the Canvas Mobile App Requirements.

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Student Education Experience Questionnaire (SEEQ)

During the semester you will receive information for completing the Student Education Experience Questionnaire (SEEQ). Your participation is an opportunity to provide anonymous feedback on your learning experience. Your feedback is important because it allows us to understand your experience in this course and make changes to improve the learning experiences of future students. Please monitor email and course communications for links and availability dates.

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If you need technical assistance at any point during the course, please contact the Service Desk.

For registration, advising, disability services, help with materials, exams, general problem solving, visit World Campus Student Services!

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MathJax

This course uses MathJax to display complex equations in an accessible way for all viewers. An example of an equation displayed using MathJax follows:

$\sigma =\sqrt{\frac{{\displaystyle \sum _{i=1}^n{\left(r_{i-\mu }\right)}^2}}{n-1}}$

One useful feature of MathJax, Zoom Trigger, enlarges equations when you click on them or hover over them with the mouse. To set up a Zoom Trigger, please follow the steps below.

Step 1: Right-click on the equation.

Step 2: Hover over "Math Settings."

Step 3: Hover over "Zoom Trigger."

Step 4: Click on your preferred Zoom Trigger option, which will allow you to zoom in on an equation with either a hover, click, or double-click.

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Course Requirements and Grading

The course is composed of 14 lessons.  At the end of each of the 14 lessons, students are required to complete a lesson assignment. Each lesson assignment is worth 25 points.

There are also two exams, a mid-term covering material from modules 1-7 and a noncumulative final covering material from modules 8-14. Each exam is worth 175 points.

The total number of available points, therefore, is 700, which is 350 points for the 14 lesson assignments, 175 points for the mid-term, and 175 points for the final exam.

Assignment Category Breakdown

Category	Points Per Assignment	Total
Lesson Assignments (14)	25	350
Exams (2)	175	350
Total		700

 

 

Letter Grade Values

Numerical Value	Letter Grade
91.0% and above	A
89.0 - 90.9%	A-
87.0 - 88.9%	B+
81.0 - 86.9%	B
79.0 - 80.9%	B-
77.0 - 78.9%	C+
69.0 - 76.9%	C
60.0 - 67.9%	D
Below 59.9%	F

Assignment Details

Suggested Weekly Plan for Students

Each week, students should start a new lesson. In order, the suggested steps go like this:

Due Dates and Entering Grades

The course has 14 lessons and generally the assignments for each lesson are due at the end of an instructional week (Sunday, 11:59 PM). 

Students needing extra time after the due date must obtain permission in advance from the instructor, and then notify the instructor about the completion of the assignment.

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Please refer to the University Grading Policy for Undergraduate Courses for additional information about University grading policies.

If, for reasons beyond the student's control, a student is prevented from completing a course within the prescribed time, the grade in that course may be deferred with the concurrence of the instructor. The symbol DF appears on the student's transcript until the course has been completed. Non-emergency permission for filing a deferred grade must be requested by the student before the beginning of the final examination period. In an emergency situation, an instructor can approve a deferred grade after the final exam period has started. Under emergency conditions during which the instructor is unavailable, authorization is required from one of the following: the dean of the college in which the candidate is enrolled; the executive director of the Division of Undergraduate Studies if the student is enrolled in that division or is a provisional student; or the campus chancellor of the student's associated Penn State campus.

For additional information please refer to the Deferring a Grade page.

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Course Schedule

Note: All due dates reflect North American eastern time (ET).

The schedule below outlines the topics we will be covering in this course, along with the associated time frames and assignments. Note that assignments are due based on Eastern Time (ET). This ensures that all students have the same deadlines regardless of where they live. All lesson assignments must be submitted by 11:59 PM (ET) on the last day of the timeframe indicated below for the lesson.

• Course length: 16 weeks​

Lesson 1

Lesson 1

Readings:	Chapter 1: Limits, Alternatives, and Choices
Assignments:	Learnsmart Activity, Chapter 1. Limits, Alternatives, and Choices End of Lesson Assignment Quiz All lesson assignments must be submitted by 11:59 PM (ET) on Sunday.

Lesson 2

Lesson 2

Readings:	Chapter 2: The Market System and the Circular Flow
Assignments:	Learnsmart Activity, Chapter 2. The Market System and the Circular Flow End of Lesson Assignment Quiz All lesson assignments must be submitted by 11:59 PM (ET) on Sunday.

Lesson 3

Lesson 3

Readings:	Chapter 3: Demand, Supply, and Market Equilibrium
Assignments:	Learnsmart Activity, Chapter 3. Demand, Supply, and Market Equilibrium End of Lesson Assignment Quiz All lesson assignments must be submitted by 11:59 PM (ET) on Sunday.

Lesson 4

Lesson 4

Readings:	Chapter 4: Market Failures: Public Goods and Externalities
Assignments:	Learnsmart Activity, Chapter 4. Market Failures: Public Goods and Externalities End of Lesson Assignment Quiz All lesson assignments must be submitted by 11:59 PM (ET) on Sunday.

Lesson 5

Lesson 5

Readings:	Chapter 6: Elasticity
Assignments:	Learnsmart Activity, Chapter 6. Elasticity End of Lesson Assignment Quiz All lesson assignments must be submitted by 11:59 PM (ET) on Sunday.

Lesson 6

Lesson 6

Readings:	Chapter 7: Utility Maximization
Assignments:	Learnsmart Activity, Chapter 7. Utility Maximization End of Lesson Assignment Quiz All lesson assignments must be submitted by 11:59 PM (ET) on Sunday.

Lesson 7

Lesson 7

Readings:	Chapter 9: Businesses and the Costs of Production
Assignments:	Learnsmart Activity, Chapter 9. Businesses and the Costs of Production End of Lesson Assignment Quiz All lesson assignments must be submitted by 11:59 PM (ET) on Sunday.

Lesson 8

Lesson 8

Readings:	Chapter 10: Pure Competition in the Short Run
Assignments:	Learnsmart Activity, Chapter 10. Pure Competition in the Short Run End of Lesson Assignment Quiz All lesson assignments must be submitted by 11:59 PM (ET) on Sunday.

Lesson 9

Lesson 9

Readings:	Chapter 11: Pure Competition in the Long Run
Assignments:	Learnsmart Activity, Chapter 11. Pure Competition in the Long Run End of Lesson Assignment Quiz All lesson assignments must be submitted by 11:59 PM (ET) on Sunday.

Lesson 10

Lesson 10

Readings:	Chapter 12: Pure Monopoly
Assignments:	Learnsmart Activity, Chapter 12. Pure Monopoly End of Lesson Assignment Quiz All lesson assignments must be submitted by 11:59 PM (ET) on Sunday.

Lesson 11

Lesson 11

Readings:	Chapter 14: The Demand for Resources
Assignments:	Learnsmart Activity, Chapter 14. The Demand for Resources End of Lesson Assignment Quiz All lesson assignments must be submitted by 11:59 PM (ET) on Sunday.

Lesson 12

Lesson 12

Readings:	Chapter 16: Rent, Interest, and Profit
Assignments:	Learnsmart Activity, Chapter 16. Rent, Interest, and Profit End of Lesson Assignment Quiz All lesson assignments must be submitted by 11:59 PM (ET) on Sunday.

Lesson 13

Lesson 13

Readings:	Chapter 20: Agriculture: Economics and Policy
Assignments:	Learnsmart Activity, Chapter 20. Agriculture: Economics and Policy End of Lesson Assignment Quiz All lesson assignments must be submitted by 11:59 PM (ET) on Sunday.

Lesson 14

Lesson 14

Readings:	Chapter 24: International Trade
Assignments:	Learnsmart Activity, Chapter 24. International Trade End of Lesson Assignment Quiz All lesson assignments must be submitted by 11:59 PM (ET) on Friday.

Note: If you are planning to graduate this semester, please communicate your intent to graduate to your instructor. This will alert your instructor to the need to submit your final grade in time to meet the published graduation deadlines. For more information about graduation policies and deadlines, please go to the Graduation Information on the My Penn State Online Student Portal.

Formal instruction will end on the last day of class. Provided that you have an active Penn State Access Account user ID and password, you will continue to be able to access the course materials for one year, starting from the end date of the academic semester in which the course was offered (with the exception of library reserves and other external resources that may have a shorter archival period). After one year, you might be able to access the course based on the policies of the program or department offering the course material, up to a maximum of three years from the end date of the academic semester in which the course was offered. For more information, please review the University Course Archival Policy.

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Academic Integrity

According to Penn State policy G-9: Academic Integrity , an academic integrity violation is “an intentional, unintentional, or attempted violation of course or assessment policies to gain an academic advantage or to advantage or disadvantage another student academically.” Unless your instructor tells you otherwise, you must complete all course work entirely on your own, using only sources that have been permitted by your instructor, and you may not assist other students with papers, quizzes, exams, or other assessments. If your instructor allows you to use ideas, images, or word phrases created by another person (e.g., from Course Hero or Chegg) or by generative technology, such as ChatGPT, you must identify their source. You may not submit false or fabricated information, use the same academic work for credit in multiple courses, or share instructional content. Students with questions about academic integrity should ask their instructor before submitting work.

Students facing allegations of academic misconduct may not drop/withdraw from the affected course unless they are cleared of wrongdoing (see G-9: Academic Integrity ). Attempted drops will be prevented or reversed, and students will be expected to complete course work and meet course deadlines. Students who are found responsible for academic integrity violations face academic outcomes, which can be severe, and put themselves at jeopardy for other outcomes which may include ineligibility for Dean’s List, pass/fail elections, and grade forgiveness. Students may also face consequences from their home/major program and/or The Schreyer Honors College.

How Academic Integrity Violations Are Handled
World Campus students are expected to act with civility and personal integrity; respect other students' dignity, rights, and property; and help create and maintain an environment in which all can succeed through the fruits of their own efforts. An environment of academic integrity is requisite to respect for oneself and others, as well as a civil community.

In cases where academic integrity is questioned, the Policy on Academic Integrity indicates that procedure requires an instructor to inform the student of the allegation. Procedures allow a student to accept or contest a charge. If a student chooses to contest a charge, the case will then be managed by the respective college or campus Academic Integrity Committee. If that committee recommends an administrative sanction (Formal Warning, Conduct Probation, Suspension, Expulsion), the claim will be referred to the Office of Student Accountability and Conflict Response.

All Penn State colleges abide by this Penn State policy, but review procedures may vary by college when academic dishonesty is suspected. Information about Penn State's academic integrity policy and college review procedures is included in the information that students receive upon enrolling in a course. To obtain that information in advance of enrolling in a course, please contact us by going to the Contacts & Help page .

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Accommodating Disabilities

Penn State welcomes students with disabilities into the University's educational programs. Every Penn State campus has resources for students with disabilities. The Student Disability Resources (SDR) website provides contacts for disability services at every Penn State campus. For further information, please visit the SDR website.

In order to apply for reasonable accommodations, you must contact the appropriate disability resources office at the campus where you are officially enrolled, participate in an intake interview, and provide documentation based on the documentation guidelines. If the documentation supports your request for reasonable accommodations, your campus's disability resources office will provide you with an accommodation letter. Please share this letter with your instructors and discuss the accommodations with them as early in your courses as possible. You must follow this process for every semester that you request accommodations.

Additional Policies

For information about additional policies regarding Penn State Access Accounts; credit by examination; course tuition, fees, and refund schedules; and drops and withdrawals, please see the World Campus Student Center website.

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