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EOA611S- ECONOMICS OF AGRICULTURE- 1ST OPP- JUNE 2023 |
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nAmlBIA unlVERSITY
OF SCIEnCE
TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT ECONOMICS, ACCOUNTING AND FINANCE
QUALIFICATION: BACHELOR OF ECONOMICS
QUALIFICATION CODE: 07BECO
LEVEL: 7
COURSE CODE: EOA611S
COURSE NAME: ECONOMICS OF AGRICULTURE
SESSION: JUNE 2023
DURATION: 3 HOURS
PAPER: THEORY
MARKS: 100
FIRST OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINER(S)
MR. MALLY LIKUKELA
MODERATOR:
MR. PINEHAS NANGULA
INSTRUCTIONS
1. Answer ALL the questions.
2. Read all the questions carefully before answering.
3. Number the answers clearly
THIS QUESTION PAPER CONSISTS OF _6_ PAGES (Including this front page)
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1. Microeconomics is concerned with:
a. The behavior of individual decision making units such as households and
firms
b. The performance, structure, behavior, and decision-making of an
economy as a whole.
c. The economy as a whole, focusing on goals like growth in the standard of
living, unemployment, and inflation.
d. The study of microscopic organisms, such as bacteria, viruses, archaea,
fungi and protozoa.
2. Positive Economics is based on:
a. Statements that contain opinions and value judgement. i.e. "what ought
to be" or "what should be
b. based on factual statements and such statements contain no value
judgement
c. Statements that cannot be settled by science or by an appeal to and such
statement
d. All of the above
3. The term scarcity
a. Refers to a market economy in which the means of production belongs to
the state
b. Refers to the decisions of what, how and when to produce and for whom
to produce
c. Refers to the value of the next-best alternative when a decision is made
d. Refers to the finite quantity of resources that are available to meet a
society's needs
4. Specialization means
a. To focus resources on a specific task to have an increase in the production
output
b. The separation of tasks in an organization so that participants may
specialize
c. Segmentation of tasks, with each person focusing on a specific part of the
production process
d. All of the above
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5. Resources
a. Are also known as the factors of production, inputs or factors
b. Are productive items used to produce the goods and services that satisfy
human wants
c. Includes land, water supplies, mineral deposits and rich agricultural soils.
d. All of the above
6. An Indifferent curve
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
7. The slope of budget line is called
a. the Marginal Rate of Transformation
b. the diminishing marginal return
c. the marginal rate of substitution
d. the rate of marginal substitution
8. Demand schedule
a. Is a table that displays price and quantities demanded
b. Is what explain the law of demand
c. is a mathematical expression of the relationship between quantity
demanded and price
d. all of the above
9. Demand Function
a. Shows the relationship between the quantity demanded, and the price
b. Tells us the relationship between the quantity supplied, and the price
c. Is a binary relation between two sets that associates to each element of
the first set exactly
d. Relates the maximum amount of output that can be obtained from a given
number of inputs
10. Form of credit used to increase production or income or used to purchase land,
livestock, equipment, seed, fertilizer is known as:
a. Consumption Credit
b. Productive Credit
c. Operational Credit
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d. Collateral Credit
rsE·C. ..
=v ·~
1. Ordinary goods are goods whose demand decreases with price increases, and
have negatively slopped indifference curves.
2. 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.
3. Government's sole purpose is to provides policy that will enable rural
communities to harness and benefit from resources sustainably.
4. The Agric. Marketing system starts with production and ends with the consumer.
5. Operational Credit is credit used to purchase consumable items used by the
family and does not contribute to business income.
6. 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 increases.
7. An isoquant is a curve showing all possible input combinations capable of
producing a given level of output.
8. Cooperative is a non-voluntary business owned and controlled by its member-
patrons and operated for them on a profit basis.
9. The slope of an indifference curve reflects the rate at which the consumer is
willing to substitute one good for the other.
10. The budget line and opportunity set means the same thing.
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QUESTION 1
Define the following terms;
1.
Law of diminishing return:
2.
Cooperatives
3.
Production function:
4.
Price elasticity of demand
5.
Indifference curve
[lOMARKS]
QUESTION 2
[SMARKS]
Suppose your monthly quantity demand function for a product is Qd = 10,000-80P and
your monthly supply function for a product is Qs=20P; solve for the equilibrium price
and quantity.
QUESTION 3
Explain why indifference curves (IC) cannot cross as follows:
co
-c,
0
0
(!)
Cj 1··~··~--:g~
----------Good
A
[S MARKS]
Question 4
[S MARKS]
Complete the following Table using the appropriate concepts and formulas.
Quantity of Labour Total Product
0
0
1
15
34
3
48
4
5
62
Average Product
17
16
15
12.4
Marginal Product
15
14
12
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SECTION D
SSMARKS
QUESTION 1
[25 MARKS]
Identify and discuss the determinants of supply in relation to agricultural sector
QUESTION 2
[lSMARKS]
• Scenario 1: Consider a consumer who can spends his income of 300 on good A or
on good Boron any combination of A and B. One unit of A costs 3 and one unit of
B costing 5. Draw a budget line.
• Scenario 2: Imagine the same consumer, his income rises from 300 to 360, other
things remaining equal. Draw an additional new budget line to illustrate the
change.
• Imagine the consumer in Scenario 2, the price of 1 unit of B falls from 5 to 4,
other things remaining equal. Draw an additional new budget line to illustrate the
change.
QUESTION 3
[lSMARKS]
The success of the agriculture sector depends on the critical roles played by various
stakeholders in the economy. Select one stakeholder of your choice and discussthe role
which that particular stakeholder plays in the agriculture sector.
[S Marks (Selection and description of choice) +10 Marks (discussion of the role)]