MAASAI MARA UNIVERSITY
REGULAR UNIVERSITY EXAMINATIONS 2013/2014 ACADEMIC YEAR
FOURTH YEAR SECOND SEMESTER
SCHOOL OF BUSINESS AND ECONOMICS
BACHELOR OF ARTS IN ECONOMICS
COURSE CODE: ECO 417
COURSE TITLE: AGRICULTURAL ECONOMICS II
DATE: 24TH APRIL, 2014 TIME: 2.00 – 5.00 P.M.
INSTRUCTIONS TO CANDIDATES
Question ONE is compulsory
Answer any other TWO questions
This paper consists of 3 printed pages. Please turn over.
QUESTION ONE
a) Explain the meaning of the following terms:
(i) Agricultural Economics
(ii) Agricultural Production Economics
(iii) Farm Management
(iv) Agricultural Marketing
(v) Agricultural Finance (5 mks)
b) The Kenya Vision 2030 blueprint envisions agricultural growth rate of 7% to contribute to the overall economic growth of 10%. Clearly highlight the key initiatives that drive the growth of the sector. (5 mks)
c) According to the third annual progress report 2008-2012) clearly explain the progress that the sector has made towards the achievement of the projected growth rate. (10 mks)
d) Explain two key policy directions by the Kenya government to ensure adequate domestic food supply. (5 mks)
QUESTION TWO
a) For centuries, governments have worked towards ensuring food availability to their constituents. Explain some of the conventional policies to improve food supply and food security. (8 mks)
b) Developing economies have used a variety of macroeconomic models to build and focus on improved agricultural production. Highlight some of the commonly used models. (7 mks)
QUESTION THREE
a) Agriculture plays a crucial role in the life of an economy. Explain the importance of agriculture in the Kenyan economy. (8 mks)
b) National income which implies the people’s income enhances the standards of living in the economy. Discuss. (7 mks)
QUESTION FOUR
a) It has been argued for decades that monetary policy and exchange rates are more important than agricultural policy in determining farm income and its variability. Discuss. (6 mks)
b) In economics, wealth is synonymous with economic goods and consists of all potentially exchangeable means of satisfying human wants.
i) Highlight the major characteristics of wealth. (3 mks)
ii) Explain the types of wealth and distinguish between wealth and welfare. (6 mks)
QUESTION FIVE
In order for a government to boost agricultural production, they impose commercial policies which are basically imposed in order to safeguard the local industries. Critically evaluate the arguments for imposing commercial policies. (15 mks)
