UNIVERSITY OF AGRICULTURAL SCIENCES, RAICHUR
FINAL EXTERNAL EXAMINATION
II Yr. B.Sc (Hons) Agriculture
Semester: 2017–18
Course: AEC 201 (1+1)
Subject: Farm Management, Production and Resource Economics
Date: 20-01-2018
Time: 2½ Hours
Max. Marks: 50
SECTION – I
I.A Choose the appropriate answer
(10 × 0.5 = 5.0)
In a classical production function, when MPP is zero, TPP
a. Increases at increasing rate
b. Increases at decreasing rate
c. Maximum
d. ZeroElasticity of production at the end stage I of classical production function is
a. More than one
b. Equal to one
c. Less than one
d. ZeroRidge lines used to separate
a. Supplementary from Complementary
b. Competitive to antagonism
c. Supplementary from Competitive
d. Complementary from CompetitiveOne can reduce the cost, by using more of the ‘added resource’, if
a. MRTS < Price ratio of factors
b. MRTS > Price ratio of factors
c. MRTS < Price ratio of products
d. MRTS > Price ratio of productsGreater risk is involved in
a. Diversified farming
b. Specialized farming
c. Mixed farming
d. RanchingWhen is an isoquant ‘L’ shaped
a. When the two factors are complementary
b. When the two factors are perfect substitutes
c. When the two factors are used in varying proportions
d. When the two factors are imperfect substitutesThe costs of self-owned and self-employed resources engaged in the farm are
a. Explicit costs
b. Real costs
c. Implicit costs
d. AllWhich one of the following is an example of non-renewable resources?
a. Wind
b. Water
c. Vegetation
d. Coal and mineralsProduction is a function of
a. Prices
b. Cost
c. Profit
d. FactorsLinear programming was developed by
a. Leon Walras
b. William Stanley Jevons
c. George B Dantzig
d. Adam Smith
I.B Match the following
(5 × 0.5 = 2.5)
| A | B |
|---|---|
| 11. Fixed resources | a. Land, Livestock, machinery |
| 12. Flow resources | b. Returns sacrificed from the next best alternative |
| 13. Variable resources | c. Depreciation, Taxes and insurance |
| 14. Fixed costs | d. Labour, sunshine |
| 15. Opportunity cost | e. Seed, fertilizers and chemicals |
I.C Fill in the blanks with appropriate answers
(5 × 0.5 = 2.5)
The estimation of future value of present income is called __________
The products which are produced from the same production process are called __________
The point on TPP curve which corresponds with maximum MPP is called __________
Simultaneous increase or decrease in all the inputs in the same proportion to study their influence on output is called __________
Isocline representing most appropriate product combination is called __________
SECTION – II
II. Define the following
(10 × 1 = 10.0)
Isocline
Farm management
Elasticity of production
Agricultural Production Economics
Opportunity cost
Choice indicator
Law of diminishing returns
Mixed farming
Pareto optimality
Poly period resource
SECTION – III
III. Differentiate any FIVE of the following
(5 × 2 = 10.0)
Continuous and discontinuous production function
Farm planning and farm budgeting
Iso-product and iso-resource curve
Substitutes and complements
Fixed cost and variable cost
Average Physical Product (APP) and Marginal Physical Product (MPP)
Natural Resource Economics and Agricultural Economics
Flow and stock resources
SECTION – IV
IV. Answer any FOUR of the following
(4 × 2.5 = 10.0)
Principles of comparative advantage
Objectives of agricultural production economics
Types of risks
Law of equi-marginal returns
Assumptions of linear programming
Features of Pradhan Mantri Fasal Bima Yojana (PMFBY)
SECTION – V
V. Answer 45th, 46th AND any ONE of 47th or 48th
(3 + 3 + 4 = 10.0)
Describe the various steps involved in farm planning and budgeting
Explain different types of product (enterprise) relationship with neat labeled diagrams
Explain the three stages of production function with neat labeled diagram and point out the rationality of each stage
OR
What do you mean by externality? Explain positive and negative externality with examples
ADDITIONAL PAPER (SHORT SECTION)
Q.I Fill in the blanks with appropriate word/s
(0.5 × 5 = 2.5)
When two products are produced in a single production process, then they are called ______ products.
The ratio of marginal product to average product is ______
______ represents all possible combinations of two products that could be produced with given amount of resources.
Change in the total cost per unit increase in output is ______
The marginal rate of product substitution between competitive products is ______
Q.II Define / give meaning
(0.5 × 5 = 2.5)
Opportunity cost
Budget line
Farm Management
Antagonistic products
Marginal Value Product
Q.III Underline correct answer
(0.5 × 5 = 2.5)
Non cash fixed costs include
a. Insurance premium
b. Land revenue
c. Family labour cost
d. Hired labour costA production function with elasticity Ep = 1 indicates
a. Increasing returns
b. Decreasing returns
c. Negative returns
d. Constant returnsWhen MPP = APP
a. MC = ATC
b. Ep = 1
c. Both a & b
d. None of theseIsoquant is also called as
a. Iso resource curve
b. Iso product curve
c. Iso factor curve
d. Opportunity curveIf two inputs are completely interchangeable, then they are called
a. Perfect substitutes
b. Perfect complements
c. Perfect supplements
d. None of these
Q.IV True or False
(0.5 × 4 = 2.0)
Marginal input cost is the price per unit of output
Optimum output occurs where MR = MC
MC curve intersects AVC at minimum point from below
Main objective of combining factors is profit maximization
Q.V Answer the following
Steps in least cost combination (algebraic method) (1.00)
Decisions in farm management (1.50)
Characteristics of isoquant (1.00)
Nature of PPC in product relationships (2.00)
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