Hrd 2356:Economics Ii Question Paper
Hrd 2356:Economics Ii
Course:Bachelor Of Crop Protection
Institution: Meru University Of Science And Technology question papers
Exam Year:2013
QUESTION ONE – 30 MARKS
(a) Explain the objectives of the government setting the price of agricultural products and show each type of the price limit. (6Marks) (b) Explain the basic assumptions of the production function. (6Marks) (c) Explain the types of factor-factor relationships. (6Marks) (d) State the macro-economic factors that affect the location of an agricultural business. (6Marks) (e) State and explain the various types of exchange rates. (6Marks)
QUESTION TWO –20 MARKS
(a) Explain the objectives of participating in international trade. (6Marks) (b) Discuss the objectives of exchange rate control and giving an example from Agriculture in each case. (8Marks) (c) Using illustrations distinguish between Iso-cost and Iso-quant. (6Marks)
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QUESTION THREE – 20 MARKS
(a) Discuss the various risks and uncertainities, showing the dimensions of each and suggest a tactical dimension to each. (12Marks) (b) Discuss the various principles of substitution in Agriculture. (8Marks)
QUESTION FOUR – 20 MARKS
(a) Given that 20 bags of maize can be produced using various combinations of organic fertilizers A and B as shown below. Organic A kg 40 23 15 11 8 6 5 5 Organic B kg 10 20 30 40 50 60 70 80
Required: (i) Estimate the least cost combination given that price of 1kg of A = 60/=, B = 30/= (7Marks) (ii) Calculate the least cost. (3Marks) (iii) What is the MRTS (A,B) at the least cost combination. (2Marks) (iv) Calculate the profit at this point given that 1 bag of maize = shs. 3,000. (3Marks)
(b) Explain the basic product-product relationship. (5Marks)
QUESTION FIVE – 20 MARKS
(a) Explain the stages of the production function. (10Marks) (b) Explain the various ways of determining the price of an agricultural product. (5Marks) (c) Distinguish between the long run and the short run production function. (5Marks)
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