Agec 451: Agricultural Policy Analysis Question Paper
Agec 451: Agricultural Policy Analysis
Course:Bachelor Of Science In Animal Science
Institution: Chuka University question papers
Exam Year:2013
CHUKA
UNIVERSITY
UNIVERSITY EXAMINATIONS
FOURTH YEAR EXAMINATION FOR THE AWARD OF DEGREE OF
BACHELOR OF SCIENCE IN ANIMAL SCIENCE
AGEC 451: AGRICULTURAL POLICY ANALYSIS
STREAMS: BSc. (ANSC) TIME: 2 HOURS
DAY/DATE: TUESDAY 7/8/2013 8.30 A.M. – 10.30 A.M.
INSTRUCTIONS:
SECTION A: ANSWER ALL QUESTIONS
1. Explain the role of agriculture in Kenya’s Economy. [10 marks]
2. Using appropriate illustrations and examples, explain the concept of pareto
optimality as used in welfare economics. [6 marks]
3. Explain five (5) reasons for government intervention in agricultural markets.
[10 marks]
4. Explain four instruments used to implement agricultural price policies. [4 marks]
SECTION B: ANSWER ANY TWO QUESTIONS
5. (a) Using an illustration explain the relationship between consumer surplus
equivalent and compensating variation. [12 marks]
(b) Using an illustration explain the relationship between marginal cost and
producer surplus. [8 marks]
6. (a) Using a diagram, describe autarkic equilibrium. [8 marks]
(b) What is the justification of opening up a country’s economy to international trade? [12 marks]
7. (a) Discuss challenges facing agricultural development in Kenya. [10 marks]
(b) Suggest policy interventions to address each challenge. [10 marks]
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