AGEC 105 Lecture Notes - Lecture 2: Corporate Farming
21 Jan 2017
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Topics of discussion: indices and nominal vs real values, what is the food and fiber industry, changing complexion of production agriculture, physical structure, productivity, profitability, financial structure. Price index (base year 1990) (million lbs. ) (base year 1990) 1. 095 = 5289/4828 - output was 9. 5% higher in 1995 than in 1990. 1. 161 = 0. 835/0. 719 price was 16. 1% higher in 1995 than in 1990. Inflation affects economic measures such as prices, interest rates, expenditures, and disposable income. Price indices are useful in that they are a measure of inflation. A popular measure of inflation is the consumer price index (cpi). There are other indices that are commonly used in practice. Nominal values refer to values for which no adjustments to inflation have been made. Real values refer to values for which adjustments have been made. 1982-84 is the base period for the cpi. Cpi was 83. 3% higher in 2003 than it was in 1982-84 period.
