The purpose of the course is to help students understand the basic laws and principles that govern an economy. Also to understand the scarcity of the means of production, the Basic Economic Problem that underlies any economy.  Furthermore, to understand the basic objective that every economic unit (individual, firm, institution, state) has of maximizing benefit. Finally, all of the above are specified in the specific characteristics (physical, structural, economic) of the agricultural sector. All of the above highlights the role and necessity of State intervention. The State, through its agricultural policy, aims to create the right environment to meet the long-term development objectives it has set. These objectives may relate to the protection of producers or consumers. The State's intervention through its mechanisms also aims to reduce uncertainty through compensation and insurance of production.