Egerton University: Master of Agribusiness Management; MSc Agricultural Economics; MSc Applied Agricultural Economics

Kenya · Egerton University · pg

56practice questions written to this syllabus
4subjects

Format

Online application; no entrance test.

Sections

Official source: https://graduateschool.egerton.ac.ke/Masters-Programmes

Subjects this exam draws on

Agricultural Marketing & Price Analysis5 questionsAgri Value Chain Management27 questionsInternational Agri Trade & Export Management21 questionsEconomic Development and Agricultural Economies of the World3 questions

Five practice questions, worked

Original questions written to this exam's published syllabus and pattern. Not past papers.

1. In the United States, joint marketing by agricultural producers through cooperatives is protected from antitrust prosecution by:

  1. The Commodity Exchange Act of 1936
  2. The Capper-Volstead Act of 1922
  3. The Agricultural Marketing Agreement Act of 1937
  4. The Packers and Stockyards Act of 1921
Answer and working

B. The Capper-Volstead Act of 1922

Capper-Volstead (1922) allows producers to market collectively. The Packers and Stockyards Act regulates livestock trade, the 1937 Act authorises marketing orders and the Commodity Exchange Act governs futures.

Agricultural Marketing & Price Analysis · Cooperative marketing

2. A drought causes food prices to spike for one season, and many households that normally eat adequately cut meals. Which dimension of food security is most directly failing?

  1. Utilisation
  2. Availability in the long run
  3. Stability
  4. Food environment
Answer and working

C. Stability

The four dimensions (1996 World Food Summit) are availability, access, utilisation and stability. A temporary shock that interrupts otherwise adequate access is a failure of stability. Utilisation concerns the body's use of food (diet quality, health, water and sanitation); the food environment is part of the HLPE food-system framework, not a food-security dimension.

Agri Value Chain Management · Global food systems

3. Which is a recognised limitation of the Balassa revealed comparative advantage index?

  1. It reflects trade distortions such as subsidies and ignores imports
  2. It requires detailed domestic price data for each product and every trading partner
  3. It can only take values between 0 and 1
  4. It cannot be computed for agricultural products
Answer and working

A. It reflects trade distortions such as subsidies and ignores imports

RCA uses observed exports, so export subsidies or protection can raise it without any true cost advantage, and imports are ignored. It ranges from 0 to infinity (hence symmetric versions), uses trade not price data, and is widely computed for farm products.

International Agri Trade & Export Management · Absolute and comparative advantage

4. Under the Malabo Declaration of 2014, African Union governments recommitted to spend what minimum share of public expenditure on agriculture?

  1. 6 per cent
  2. 10 per cent
  3. 25 per cent
  4. 3 per cent
Answer and working

B. 10 per cent

The Maputo (2003) commitment under CAADP, reaffirmed at Malabo, is at least 10 per cent of public expenditure on agriculture. 6 per cent is the target annual agricultural growth rate, a common confusion.

Economic Development and Agricultural Economies of the World · Comparative development paths

5. In a vegetable chain, smallholders bear almost all weather risk because a processor buys on the spot market only when supply suits it. Which governance change would move some climate risk to the actor better able to bear it?

  1. Moving all farmers to spot sales at the wholesale market, where many buyers compete and absorb the weather shocks
  2. Asking farmers to plant a single high-yield variety
  3. Shortening payment terms from 30 to 60 days
  4. A multi-season contract with agreed volumes and risk sharing, backed by index insurance arranged by the processor
Answer and working

D. A multi-season contract with agreed volumes and risk sharing, backed by index insurance arranged by the processor

A value-chain view asks who bears risk and who can bear it. Longer contracts with risk-sharing and insurance organised at scale shift some risk to the larger, diversified processor. Spot sales keep risk with farmers, a single variety concentrates risk, and 60 days is a longer, not shorter, payment delay.

Agri Value Chain Management · External drivers: climate and technology

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