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EOA611S-ECONOMICS OF AGRICULTURE-1ST OPP- JUNE 2024 |
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nAmlBIA
unlVERSITY
OF SCIEnCE Ano TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF ECONOMICS, ACCOUNTING AND FINANCE
QUALIFICATION: BACHELOR OF ECONOMICS
QUALIFICATION CODE:
07BECO
LEVEL: 7
COURSE CODE: EOA6 l l S
COURSE NAME: ECONOMICS OF
AGRICULTURE
SESSION: JUNE 2024
DURATION: 3 HOURS
PAPER:THEORY
MARKS: 100
FIRST OPPORTUNITY QUESTION PAPER
EXAMINER(S) MR. MALLY LIKUKELA
MODERATOR: MR. PINEHAS NANGULA
INSTRUCTIONS
I. This paper consist of section A,B,C and D
2. Answer ALL questions
3. Number your answers in accordance with the question paper.
4. Start each section answer on a new page
5. Write clearly and legibly
PERMISSIBLE MATERIALS
I. Pen/penci I/eraser
2. Ruler
3. Calculator
THIS COMPREHENSIVE ASSESSMENT MEMORANDA CONSISTS OF 6 PAGES
(Including this front page)
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SECTION A: MULTIPLE CHOTCE
10 MARKS
1. The term utility is generally related to
[1]
A. Satisfaction
B. Necessary
C. Useless
D. Useful
2. The term 'marginal' in economics means
[1]
A. Additional
B. Unimportant
C. Minimum Unit
D. None of the above
3. When the price of coffee rises, the demand for tea __ .
[1]
A. Falls
B. Rises
C. Stays the same
D. None of the above
4. If the quantity demanded of a commodity is unresponsive to change in prices, then
the demand of that commodity is ___ _
[1]
A. Perfectly inelastic
B. Elastic
C. Unit elastic
D. Inelastic
5. Form of credit used to increase production or income or used to purchase land,
livestock, equipment, seed, fertilizer is known as:
111
A. Consumption Credit
B. Productive Credit
C. Operational Credit
D. Collateral Credit
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6. Which of the following is a microeconomic topic?
A. The reasons for a decline in average prices
B. The reasons why Kathy buys less orange juice
C. The cause of why total employment may decrease
D. The effect of the government budget deficit on inflation
7. Which of the following is not a cause of the shift in demand for a product? (JJ
A. Change in the price of substitutes
B. Change in the income of a consumer
C. Change in the price of a product
D. None of the above
8. In which economy do consumers and producers make choices based on market forces
of supply and demand?
A. Market economy
B. Open economy
C. Controlled economy
D. Command economy
9. An Indifferent curve
[1]
A. indicates the combinations of any two goods or services that are attainable when the
community's resources are fully and efficiently employed
B. Is a graphed function that shows all combinations of two goods that provide exactly
the same degree of satisfaction to a consumer.
C. Indicates the maximum amount/quantities of outputs (goods/services) an economy
can achieve
D. None of the above
10. Which of the following statements about the demand curve is true?
(1]
A. The slope of the demand curve is upward from left to right
B. The slope of the demand curve is downward from left to right
C. The slope of the demand curve is parallel to the X-axis
D. The slope of the demand curve is parallel to the Y-axis
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SECTION A: TRUE OR FALSE
10 MARKS
I. An isoquant is a curve showing all possible input combinations capable of producing a
given level of output
2. Cooperative is a non-voluntary business owned and controlled by its member-patrons and
operated for them on a profit basis
3. The slope of an indifference curve reflects the rate at which the consumer is willing to
substitute one good for the other
4. Ordinary goods are goods whose demand decreases with price increases, and have
negatively slopped indifference curves
5. Increasing returns occurs when each additional unit of input added to the production
process yields an increasing level of output relative to the previous unit of input
6. Government's sole purpose is to provides policy that will enable rural communities to
harness and benefit from resources sustainably
7. The Agric. Marketing system starts with production and ends with the consumer
8. Operational Credit is credit used to purchase consumable items used by the family and
does not contribute to business income
9. The Law of Demand states that when you consume more units or a particular good during
a set time, at some point your marginal utility will decrease as your consumption
mcreases
I 0. The budget line and opportunity set means the same thing
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SECTION C
QUESTION 1
Define the following terms;
I) Law of diminishing return:
2) Cooperatives
3) Production function:
4) Price elasticity of demand
5) Indifference curve
50 MARKS
(10 MARKS]
(2)
(2)
(2)
(2)
(2)
QUESTION 2
[25 MARKS)
Use the following information to answer the following questions.
Table 1: Cost schedule of ABC Inc. Widgets Factory
Quantity of Widgets
Measure of Cost for ABC Inc. Widget Factory
Variables Costs
Total Costs
Fixed Costs
0
I
N$1
2
N$3
N$ 13
3
N$6
N$ 16
4
N$ 10
5
N$ 25
6
N$ 21
a. Calculate the average fixed cost of producing five widgets is
b. Calculate the average variable cost of producing four widgets is
c. Calculate the average total cost of producing one widget is
d. Calculate the marginal cost of producing the sixth widget is
e. Calculate the variable cost of producing zero widgets?
N$ 10
N$ 10
QUESTION 3
Identify and discuss the determinants of price elasticity of supply
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[15 MARKS)
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SECTION D
[30 MARKS]
QUESTION 1:
[10]
Discuss the challenges to land reforms policy:
QUESTION 2:
a. Suppose that your monthly quantity demand function for a product is Qd = 500-50P and your
monthly supply function for a product id Qs = 50+25P;
Solve for the equilibrium price and quantity.
[5]
b. Suppose that your monthly quantity demand function for a product is Qd = 478-6P and your
monthly supply function for a product id Qs = I28+8P;
Solve for the equilibrium price and quantity.
[51
QUESTION 3:
[101
Complete the following Table using the appropriate concepts and formulas.
Quantity of
Labour
0
I
,.,
.)
4
5
Total
Product
0
15
34
48
62
Average
Product
17
16
15
12.4
Marginal
Product
15
14
12
5