Question 6
(a) A farmer purchased a tractor in the year 2000 for D 12, 000.00. In 2009, the tractor was sold for D 3,000.00 as it was no longer economical to keep. Calculate the:
(i) useful life of the tractor;
(ii) salvage value of the tractor;
(iii) total depreciation of the tractor;
(iv) annual depreciation of the tractor. (6 marks)
(b) Describe the following terms as used in agricultural economics:
(i) demand schedule
(ii) supply curve. (4 marks)
(c) List four agricultural extension agencies in West Africa. (4 marks)
(d) State four ways through which soils are enriched with nitrogen. (4 marks)
Observation
(a) Question 6 was very popular among candidates. Most of the candidates were able to perform the calculations on depreciation.
(b) Some candidates were describing demand and supply instead of demand schedule and supply curve.
(c) Many candidates were mentioning agricultural programmes like Green Revolution, Operation Feed the Nation (OFN) etc instead of agricultural extension agencies.
(d) Some candidates were mentioning examples of soil nitrogen fixing bacteria as ways through which soils are enriched with nitrogen.
The expected answers include:
6. (a) Calculations on the tractor
(i) Useful life of the tractor
2009 – 2000 = 9 years
(ii) Salvage value of the tractor
- D3, 000.00
(iii) Total depreciation of the tractor
Total depreciation = Cost price of tractor - Salvage value of tractor
= D12,000.00 - D3,000.00
= D9,000.00
b) Description of terms
(i) Demand schedule
This is a table showing the relationship between the price of a commodity and the quantity of the commodity demanded.
(ii) Supply curve
This is a graph showing the relationship between the price of a commodity and the quantity of the commodity supplied.
(c) Agricultural extension agencies in West Africa
- Agricultural Development Programme (ADP)
- Farm settlement scheme
- Agro-service centres
- Research institutes
- Universities of agriculture
- Colleges/schools/faculties of agriculture
- Ministries of agriculture
- Non-Governmental Organizations (NGOs)
- Cooperative societies
- Marketing boards
(d) Ways through which soils are enriched with nitrogen
- Symbiotic nitrogen fixation/planting of legumes
- Non-symbiotic nitrogen fixation
- Electrical discharge/lightning
- Ammonification/decomposition of organic matter
- Nitrification
- Application of organic manure
- Application of inorganic fertilizers