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Agec 111:Introduction To Agricultural Economics Question Paper

Agec 111:Introduction To Agricultural Economics

Course:Agriculture

Institution: Kenya Methodist University question papers

Exam Year:2012

KENYA METHODIST UNIVERSITY

END OF 1''st ''TRIMESTER 2012 EXAMINATIONS
FACULTY : SCIENCE & TECHNOLOGY
DEPARTMENT : AGRICULTURE AND NATURAL RESOURCES
UNIT CODE : AGEC 111
UNIT TITLE : INTRODUCTION TO AGRICULTURAL ECONOMICS
TIME : 2 HOURS

INSTRUCTIONS

Answer question one and any other two questions.

Question One

Outline the factors that cause a shift in demand of agricultural products.

(5 Marks)

Write short concise notes on free market system.

(5 Marks)

What is the importance of the concept of elasticity in agriculture?

(5 Marks)

Explain the concept of consumer sovereignty.

(5 Marks)

Explain the three concepts of return to scale.

(5 Marks)

Examine the role played by non-bank financial institutions in the agricultural sector in Kenya.

(5 marks)

Explain the difference between principle of absolute advantage and that of compenative advantage.

(5 Marks)

Explain the concept of marginal note of technical substitution and its relationship with lease cost combination.

(5 Marks)

Question Two

The following is a hypothetical production function for a small scale coffee farmer in Meru.
Land Labor Total Product(TP)
1 0 0
1 1 6
1 2 16
1 3 24
1 4 30
1 5 34
1 6 34
1 7 32
1 8 26

From the above hypothetical illustration:

Calculate the average and marginal product of labor.

(4 Marks)

Illustrate with a well labeled graph the three stages of production and with reasons identify the rational stage of production.

(5 Marks)

Identify and state the economic law derived from this production function and state its assumptions.

(6 Marks)

Question Three
Explain the various types of economies of scale which are enjoyed by a farm due to increased size of operation. (15 Marks)

Question Four

Examine at least three methods of measuring national income.

(9 Marks)

What are the limitations of using national income statistics to compare standards of living in different countries?

(6 Marks)

Agec 111:Introduction To Agricultural Economics Question Paper

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