Econ 4

Front 1

. How did the make-up of U.S. commodity production change between 1869 and 1899?

Back 1

In 1869 it was 53% agriculture and 33% manufacturing
1899 it switched completely!! 53% manufacturing and 33% agriculture

Front 2

Review the information on agricultural production after the Civil War, including productivity changes that led to increased supply. Use Table 15.2 to describe any changes in output per acre, output per worker and average farm size. What was the main source of increasing agricultural output during this period?

Back 2

Changes in plant varieties, irrigation systems, fertilizers, and other biological inventions: 1) discovery of new wheat varieties that allowed the NA wheat belt to push hundreds of miles northward and westward 2) researchers and farmers who found new methods of combating insects and diseases.
Output per acre: little or no increase. This means that the land productivity in corn and wheat had little or no increase in output per acre but sizable increases in total output, not due to increase in land productivity
Effects of mechanization- increased labor productivity and increased use of capital (reapers, steel plow, thresher)

Front 3

How did increased specialization affect farmers? What did farmers do with their surplus output? What are the pros and cons for farmers of becoming part of a global market?

Back 3

It made farmers more reliant on markets as buyers and as sellers….buying: relied on markets for consumption goods and farm equipment(on credit)…selling: everyone is producing same crop so neighbors won’t buy and everyone needs to ship crop out causing reliance on markets : domestic and international
***when price level falls, purchasing power of the dollar increases***
It made farmers more reliant on transportation (RR)- both for goods shipped out and goods received
It made farmers more vulnerable to price fluctuations- not diversified, you’re focused on one product so if the price of your specialty declines, then you have no opportunity to diversify in the short run

Front 4

Use Tables 15.3 and 15.4 in your text to describe farmers’ income and terms of trade in the late 19th century. How is it possible for farmers’ incomes to have risen (slightly) while their terms of trade were becoming worse?

Back 4

between the years of 1859 and 1889 income was rising by less than 1%, so REALLY SLOW. Also, farmers were experiencing adverse terms of trade because the price of farm products was falling relative to other prices. terms of trade refer only to price and do not take productivity into account.

Front 5

What economic problems (related to supply and demand) did farmers experience in the last half of the 19th century? Discuss the reasons behind the adverse terms of trade that farmers faced. Be sure to include a discussion of the price and income elasticity of food demand.

Back 5

the world supply was increasing more than the demand, also the output was increasing faster than the population. Food demand is price inelastic and income inelastic, so increases in QD did not soak up the excess of supply.

Front 6

Discuss farmers' perceptions about the source of their problems in the last half of the 19th century. Where did farmers lay the blame for their problems, and were these complaints valid?

Back 6

Farmers thought that banks, transportaion costs, and manufacturers were the source of their problems. You heard the words conspiracy and monopoly a lot. In fact, interest rates were accurate and dropping, as were the transportation costs and manufacturers cost.