All answers can be found in the text.
1. Name major livestock production systems in Africa.
small-scale: __________
large-scale: __________
2. Circle T for True and F for False.
i) The degree to which a farm is integrated into the market economy greatly depends on the geographical location of the farm.
|
T |
F |
ii) The proximity of a farm to urban centres does not guarantee agricultural integration into the market economy.
|
T |
F |
iii) Pure subsistence production systems are virtually non-existent in Africa.
|
T |
F |
iv) Semi-subsistence producers consume the bulk of their produce at home with no surplus available for sale.
|
T |
F |
v) For a semi-subsistence producer, the major goal is maximising chances for survival rather than maximising production.
|
T |
F |
vi) Innovation with higher production capability will be attractive to subsistence-oriented producers, despite the probability of failure.
|
T |
F |
3. Below is the format of an input-output table for a mixed smallholder farming system. List the items under the heading inputs, outputs and farm activity.
|
Item |
Farm activity |
Input utilisation |
|||
|
1 |
2 |
3 |
4 |
||
|
Inputs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outputs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4. Fill in the missing terms for the following equations:
i) Total consumption = subsistence consumption +_________ - sales.ii) Total value of output - total variable cost - total fixed cost + non-farm income =_________
iii) Net cash income from farm sources = ________ - value of purchased variable inputs - fixed cost, excluding depreciation.
5.a. Define the terms marginal physical productivity (MPP), marginal revenue (MR) and marginal factor cost (MFC), used to determine profitability of adopting intensified production methods.
MPP________
MR________
MFC________
b. Write the formula to calculate marginal value product (MVP):
MVP = ________
6.a. Name three important factors affecting household consumption responses to a commodity.
i) ________
ii) ________
iii) ________
b. Differentiate between the terms "average propensity to consume" and "marginal propensity to consume".
c. The price of milk at a farm was increased by 20%, resulting in a 4% decline in demand for it. Calculate price elasticity of demand.
7. Justify the following statement:
"Market supply response can be considered as the residual of production and consumption responses to price changes."
__________________
8. Circle T for True and F for False.
i) Above the threshold price, the net market supply would be positive.
|
T |
F |
ii) The production decisions at a farm are based on the price that the producer receives while consumption decisions are based on price at the retail level.
|
T |
F |
iii) It is possible to convert consumer retail price to producer price term by adding the marketing margin.
|
T |
F |
iv) Market equilibrium price is that price at which consumers are willing to buy all that the producers offer for sale.
|
T |
F |
9. Name two rough methods of forecasting future production/consumption for a product.
i) __________
ii) __________
10.a. How will you calculate the 1990 3-year moving average of consumption of a commodity?
b. What type of values for a variable can be used to forecast its future consumption by the trend extrapolation method?
i) __________
ii) __________
iii) __________
