NATIONAL OPEN UNIVERSITY OF NIGERIA
FACULTY OF AGRICULTURAL SCIENCES
DEPARTMENT OF AGRICULTURAL ECONOMICS AND EXTENSION
2020_2 EXAMINATION 1234
Programme: Agricultural Economics and Agribusiness
Course Title: Agricultural Production Economics and Resources Management
Course code: AEM403
Credit Unit: 3
Time Allowed: 2 ½ Hours
INSTRUCTION: Answer Compulsory question 1 (30 marks) and any 4 questions
(10 marks each).
Question 1
a. Define the term production. (2 marks)
b. State five roles of the price system in a perfect market. (5 marks)
c. Give five characteristics of a peasant Agriculture. (5 marks)
d. With example explain the concept of comparative advantage. (5 marks)
e. Explain linear programming. (4 marks)
f. Outline four concerns of microeconomics. (4 marks)
g. Explain cost. (5 marks)
Question 2.
a. List and explain two types of resources. (4 marks)
b. Mention and explain the three types of product substitution. (6 marks)
Question 3.
a. Explain with examples the following:
(i) Total cost (2 marks)
(ii) Total variable cost (2 marks)
b. Discuss three limitations of the price system in a perfectly competitive market.
(6 marks)Question 4.
a. State four steps in linear programming problems. (4 marks)
b. Briefly explain the following production indices/ measures:
(i) Total Physical Product (TPP). (2 marks)
(ii) Average Physical Product (APP). ( 2 marks)
(iii) Marginal Physical Product (MPP). (2 marks)
Question 5.
a. Discuss two properties of an Isoquant. (2 marks)
b. State two characteristics each of the following factors of production:
(i) Land (2 marks)
(ii) Labour ( 2 marks)
(iii) Capital (2 marks)
(iv) Entrepreneur (2 marks)
Question 6.
a. Discuss the production function (4 marks)
b. Briefly discuss the following economic terms:
(i) Opportunity cost (2 marks)
(ii) Scarcity (2 marks)
(iii) Choice (2 marks)
Question 7.
a. Explain the term valuation of resources. (2 marks)
b. Discuss four methods of valuation. (8 marks)
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