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Kbt 100:Principles Of Agri-Business Economics Question Paper

Kbt 100:Principles Of Agri-Business Economics

Course:Bachelor Of Science In Agribusiness Management

Institution: Kenyatta University question papers

Exam Year:2013

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2013
FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF SCIENCE(AGRIBUSINESS MANAGEMENT AND TRADE)
KBT 100: PRINCIPLES OF AGRIBUSINESS ECONOMICS
DATE: Wednesday 4th December 2013 TIME: 8.00 a.m-10.00 am
INSTRUCTIONS: Answer Question 1 and any other 2 questions

Question 1

a) Define the following terms,giving suitable examples from agribusiness economics.
i) Monopsony (2marks)
ii) Management (2marks)
iii) Economic of scope (2marks)
b)How do expected future price affect the supply of food commodities in a country (4marks)
c) The demand function of eggs in Kiambu county is given by Q=100-4p2 where p is the price per kg of cheese and Q is the quantity demand per week. Calculate the price elasticity demand for eggs at a price of kshs. 4 and interpret the results. (5marks)
d) Suppose you have two goods;apples and guavas and that guavas are considered an inferior goods to most people. Explain what happens when
i) Price of apples decrease (3marks)
ii) Income increases (3marks)
e) In the same period there is a drought affecting the supply of pineapples and a discovery that they insist in the avoidance of cancer. How will this combinations of events affect the equilibrium price and quantity of pineapples? (6marks)
f) Explain why farm management considered an economic problem. (5marks)
g) What is market transparency and what effects does it have on market conduct? (5marks)
h) If the production possibility curve were a straight line, what would that mean? (3marks)

Question 2

a) Explain the term price discrimination (4marks)
b) Discuss the different forms of price discrimination (11marks)

Question 3

Discuss why agricultural production is considered time dependent and explain the implications on far management decisions. (15marks)

Question 4

Explain the following statements. (15marks)
i) Relative welfare loss is more likely to result from a monopoly market structure than from a competitive one making the same product
ii) An increase in the cost of insecticide will shift the supply curve for cabbage to the left.
iii) If a farmer is able to produce more food and cash crops from his farm then he is inefficient.
iv) When price is too low for equilibrium it means that there will occur a shortage of the product.
v) An economy cannot produce outside the production possibilities curve because resources are scarce.

Kbt 100:Principles Of Agri-Business Economics Question Paper

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