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EOA611S-ECONOMICS OF AGRICULTURE -2ND OPP-JULY2024 |
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n Am I BI A u n IVER s I TY
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 I IS
COURSE NAME: ECONOMICS OF
AGRICULTURE
SESSION: JULY 2024
DURATION: 3 HOURS
PAPER:THEORY
MARKS: 100
SECOND OPPORTUNITY EXAMINATION 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/pencil/eraser
2. Ruler
3. Calculator
THIS EXAMINATION PAPER CONSISTS OF 5 PAGES (Including this front page)
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SECTION A: Multiple choice
[10 MARKS]
1. Which of the following is NOT a factor of production?
[1]
A. the water used to cool a nuclear power plant.
B. the wages paid to workers.
C. the effort of farmers raising cattle.
D. the management skill of a small business owner.
2. In which economy do consumers and producers make choices based on market forces
of supply and demand?
[1]
A. Market economy
B. Open economy
C. Controlled economy
D. Command economy
3. Which of the following causes a movement along a demand curve, but not a shift of
the demand curve? A change in:
[1]
A. buyers' expectations.
B. the number of buyers.
C. the price of other goods.
D. the price of the good.
4. 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:
[11
A. elastic.
B. inelastic.
C. unit elastic.
D. Can not tell from the information given.
.l
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5. When marginal is negative, it must be true that
[1]
A. The average is positive
B. The average is negative
C. The total is decreasing
D. The total is negative
6. The elasticity for the demand of durable goods is ____
_
[lJ
A. Zero
B. Equal to unity
C. Greater than unity
D. Less than unity
7. 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
8. According to the principle of diminishing marginal utility,
[lJ
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.
9. Demand is a schedule of
[1]
A. how much of a good a person wants.
B. each possible price and the amounts people will buy when their incomes change.
C. how much of a good people will purchase at different prices.
D. how much of a good people will purchase at each different price and income.
10. 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.
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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.
SECTIONC
SOMARKS
QUESTION 1
Table 3 Demand Schedule
Price
N$4
N$6
Quantity demanded
400
350
20 MARKS
1.2 Refer to Table 3:
1. Calculate the price elasticity of demand for a price increase from N$4 to N$6,
using the point elasticity formula.
[10]
11. Calculate the price elasticity of demand between N$4 and N$6,
using the ARC (midpoint) formula.
(10]
QUESTION 2
(30 MARKS]
Use the following schedule to answer question below
Table 4:
Units of Labour
Total Product
Marginal Product
0
1
100
100
2
195
3
80
4
3
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11. What is the Avg. Product when I Unit of labour is employed?
[5]
12. What is the marginal product of the 2nd Unit of labour?
[5]
13. What is the Total product of the first three units of labour?
[5]
14. If Optimum level of output results at end of 4th unit of labor, TP & MP shall be [5]
15. If you know that with 8 units of output, average fixed cost is N$.12.50 and average variable
cost is N$.8 I .25, then total cost at this output level is:
[5]
16. With fixed costs of N$.400, a firm has average total costs of N$.3 and average variable
costs of N$.2.50. Its output is:
[5]
SECTION D
Discuss 6 main challenges facing the Namibian agriculture sector.
30 MARKS
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