Basic Economic Principles
Agricultural Science · 50 practice questions
Demand and supply; production function (input-output relationships, stages of production, diminishing returns, scale of preference); characteristic features of agricultural production (smallness of holdings, biological limits, climate susceptibility, seasonality, price elasticity).
- Relate demand to supply in agricultural production and interpret graphical representations.
- Relate input to output and deduce economic concepts from graphs.
- Distinguish features of agricultural production and compute elasticity of demand/supply.
Try a few questions
- Practice question 1
The law of supply mainly states that
- A.as the price of a good rises, the quantity supplied falls
- B.price has no relationship to the quantity supplied
- C.quantity supplied is always fixed regardless of price
- D.as the price of a good rises, the quantity supplied of it tends to rise, other things being equal
Show the answer
D. as the price of a good rises, the quantity supplied of it tends to rise, other things being equal
The law of supply describes the typical direct price-quantity supplied relationship.
- Practice question 2
A government subsidy on a farm input, such as fertilizer, mainly tends to
- A.raise the effective cost to farmers using that input
- B.lower the effective cost to farmers and can encourage greater input use
- C.eliminate the need for farmers to purchase the input at all
- D.have no measurable effect on farmers' input use decisions
Show the answer
B. lower the effective cost to farmers and can encourage greater input use
Subsidies reduce the price farmers actually pay, typically encouraging more use of the input.
- Practice question 3
Marginal cost mainly refers to
- A.the total cost incurred in producing every unit so far
- B.the additional revenue earned from selling one more unit
- C.a cost that never changes regardless of output level
- D.the additional cost incurred from producing one more unit of a good
Show the answer
D. the additional cost incurred from producing one more unit of a good
Marginal cost specifically measures the cost of producing just one extra unit.
More UTME Agricultural Science topics
- Factors of Agricultural Production
- Farm Surveying and Farmstead Planning
- Forms and Classification of Major Farm Animals in West Africa
- Meaning and Scope of Agriculture
- Rocks and Soil Formation
- General Terminologies in Animal Production
- Importance of Agriculture
- Simple Farm Tools
- Soil Water and Soil Conservation
- Agricultural Ecology
- Anatomy and Physiology of Farm Animals
- Farm Machinery and Implements
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