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EOA611S-ECONOMICS OF AGRICULTURE-2ND OPP-JULY 2025 |
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n Am I B I A u n IVE Rs I TY
OF SCIEnCE Ano TECH n OLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF ECONOMICS, ACCOUNTING AND FINANCE
QUALIFICATION: BACHELOR OF ECONOMICS
QUALIFICATION CODE: 07BECO
LEVEL: 7
COURSE CODE: EOA611 S
SESSION: JULY 2025
COURSE NAME: ECONOMICS OF AGRICULTURE
PAPER: THEORY
DURATION: 3 HOURS
MARKS: 100
SECOND OPPORTUNITY EXAMINATION_PAPER
EXAMINER(S) MR. MALLY LIKUKELA
MODERATOR: MR. PINEHAS NANGULA
INSTRUCTIONS
1. 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
1. Pen/pencil/eraser
2. Ruler
3. Calculator
THIS EXAMINATION PAPER CONSISTS OF 4 PAGES (Including this front page)
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SECTION A: MULTIPLE CHOICE
[10 MARKS]
1. The term utility is generally related to
[1]
A. Satisfaction
B. Necessary
C. Useless
D. Useful
2. 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
3. Form of credit used to increase production or income or used to purchase land,
livestock, equipment, seed, fertilizer is known as:
[1]
A. Consumption Credit
B. Productive Credit
C. Operational Credit
D. Collateral Credit
4. Which of the following is not'a cause of the shift in demand for a product? [1]
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
5. 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
6. A 10% increase in the price of movie ticket in Westridge 8 movie theatre leads to a 15%
decrease in the number of tickets sold. This indicates that the demand for movie
tickets in Westridge 8 is:
[1]
A. elastic.
B. inelastic.
C. unit elastic.
D. Can not tell from the information given.
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7. The elasticity for the demand of durable goods is____
[1]
A. Zero
B. Equal to unity
C. Greater than unity
D. Less than unity
8. When a firm has little ability to influence market prices it is said to be in what kind of a
market?
[1]
A. a competitive market
B. a strategic market
C. a thin market
D. a power market
9. According to the principle of diminishing marginal utility,
[1]
A. marginal utility remains the same
B. total utility remains the same
C. marginal utility decreases with each additional unit of a good
D. that that is consumed.
1O.Which of the following is not a characteristic of a perfectly competitive market? [1]
A. Firms in the market produce differentiated products.
B. A large number of sellers and buyers.
C. Freedom of entry into and exit from the market.
D. Perfect information among buyers and sellers.
SECTION B:
10 MARKS
Distinguish between a movement along the demand/supply curve and the shift of a
demand/supply curve, and explain using the appropriate graphs.
[10 Marks]
SECTION C
SO MARKS
QUESTION 1
Demand Schedule
Price
N$4
N$6
Quantity demanded
400
350
20MARKS
Refer to Table above:
i. Calculate the price elasticity of demand for a price increase from N$4 to N$6, using the point
elasticity formula.
ii. Calculate the price elasticity of demand between N$4 and N$6, using the ARC formula.
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QUESTION 2
Use the following schedule to answer question below
Table 5:
Units of Labour
Total Product
0
1
100
2
195
3
4
[30 MARKS]
Marginal Product
100
80
1. What is the Avg. Product when 1 Unit of labour is employed?
[5]
2. What is the marginal product of the 2nd Unit of labour?
[5]
3. What is the Total product of the first three units of labour?
[5]
4. If Optimum level of output results at end of 4th unit of labor, TP & MP shall be
[5]
5. If you know that with 8 units of output, averagefixed cost is N$.12.50 and averagevariable cost
is N$.81.25, then total cost at this output level is:
[5]
6. With fixed costs of N$.4oo; a firm has average total costs of N$.3 and average variable costs
of N$.2.50. Its output is:
[5]
SECTION D
30 MARKS
QUESTION 1
15MARKS
Identify and discuss [5] main challenges facing the Namibian agriculture sector.
QUESTION2
15MARKS
Identify and discuss [5] main determinants of demand, provide an appropriate example for each
determinant
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