NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF AGRICULTURAL SCIENCE
JUNE/JULY 2013 EXAMINATION

COURSE CODE:    AEC403

COURSE TITLE:   Agricultural Production Economics and Resource Management

TIME ALLOWED: 2 hours 30 min

INSTRUCTION:    Answer any five questions. All questions carry equal marks

1.  (a) Explain the term Agricultural Economics.                                                                  (3marks)

(b) Enumerate ten special disciplines which agricultural economics is concerned with.     (5marks)

(c) Explain the terms microeconomics and macroeconomics.                                           (12marks)

2. (a) Explain the term price mechanism?                                                                              (5marks)

 (b) List five roles of the price mechanism in a competitive economy.                               (5marks)

 (c) What is farm management?                                                                                          (5marks)

 (d) Identify five characteristics of peasant agriculture in Nigeria.                                       (5marks)

3. (a) Briefly explain the term a factor of production.                                                             (3marks)

(b) State four factors of production                                                                                    (2marks)

 (c) Briefly explain three of them.                                                                                       (15marks)

4. (a) State the law of diminishing margin returns and principles of maximum profit.             (10marks)

(b) Define renewable and non-renewable resources.                                                            (6marks)

(c) What do you understand by  resources in agricultural production economics?                (4marks)

5. (a) List five types of farm assets.                                                                                          (2.5marks)

(b) Identify five major methods for valuing farm capital resources and mention their uses. (10marks)

(c) What do you understand by production function?                                                          (7.5marks)

6. (a) Mention three (3) analytical tools of production economics and explain them.               (17marks)

(b) Mention three uses of linear programming in Agriculture in analyzing farm problems.   (3marks)

7. Explain briefly any four of the following terms:

1. Opportunity cost
2. Choice
3. Specialization
4. Comparative advantage
5. Joint products                                                                         (5marks each x4 = 20marks)