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Rajasthan PSC Farm Machinery Management & Economics: practice questions

Rajasthan PSC — Assistant Agriculture Engineer (Agriculture Engineering syllabus) · India · Rajasthan Public Service Commission

Original practice questions written to the published syllabus · not past papers
10worked here, free
42written to this exam in this subject
11syllabus units

What this subject covers

Choosing, sizing, costing and replacing machines, and running a custom hiring centre that pays.

In the exams: GATE AG Sections 2 and 3 (machinery cost in 5 of 8 papers 2019–26); ICAR AIEEA-PG Unit V; NCEES PE (ASAE D497/EP496 supplied); PRC ABE machinery management

Where the 42 questions fall

How our questions for Rajasthan PSC spread across the units of Farm Machinery Management & Economics. Difficulty: 25 easy, 14 medium, 3 hard.

Custom hiring centre economics7
Mechanisation policy and subsidies6
Break-even use and custom-hire comparison5
Theoretical and effective field capacity4
Variable costs: repair and maintenance, fuel and labour4
Field efficiency and timeliness3
Machinery selection and sizing3
Fixed costs: depreciation, interest, taxes, insurance and housing3
Tractor-implement matching3
Depreciation methods: straight line, declining balance, sum-of-years digits2
Replacement decisions2

10 practice questions, worked

Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.

1 · Field efficiency and timeliness · medium

For the same machine and operator, why is field efficiency usually higher in a long rectangular field than in a short, irregular plot?

  1. Overlap is not needed in rectangular fields
  2. Headland turning time is a smaller share of total time in long fields
  3. Draft is lower in long fields, so the tractor can be driven at a higher speed
  4. Refilling is not required when fields are long
Answer and working

B. Headland turning time is a smaller share of total time in long fields

Turning time per turn is roughly fixed; a long field needs fewer turns per hectare, so productive time is a larger share. Draft, overlap and refilling needs do not depend on field length in this way.

2 · Machinery selection and sizing · easy

Which cost per hectare falls as the size (width) of a machine increases, other things being equal?

  1. Annual insurance and housing
  2. Operator labour cost
  3. Interest on the purchase price
  4. Annual depreciation charge
Answer and working

B. Operator labour cost

A wider machine finishes in fewer hours, so labour (and timeliness) cost per season falls. Depreciation, interest, insurance and housing all rise with the higher price of a bigger machine.

3 · Fixed costs: depreciation, interest, taxes, insurance and housing · easy

A power tiller costs 650,000, has a life of 10 years and a salvage value of 10 % of cost. What is its annual straight-line depreciation?

  1. 71,500
  2. 58,500
  3. 52,000
  4. 65,000
Answer and working

B. 58,500

Depreciation = (P − S)/L = (650,000 − 65,000)/10 = 58,500. Ignoring salvage gives 65,000; 71,500 adds salvage instead of subtracting it. 52,000 subtracts the salvage twice ((650,000 − 130,000)/10).

4 · Depreciation methods: straight line, declining balance, sum-of-years digits · easy

What is the annual rate used in double-declining-balance depreciation for a machine with an 8-year life?

  1. 12.5 %
  2. 18.75 %
  3. 25 %
  4. 20 %
Answer and working

C. 25 %

Double-declining rate = 2/L = 2/8 = 25 % of the opening book value. 12.5 % is the straight-line rate 1/L; 20 % would be the rate for a 10-year life. 18.75 % is the 150 % declining-balance rate (1.5/8).

5 · Break-even use and custom-hire comparison · medium

If the custom-hire rate for an operation rises while the owner's costs stay the same, the break-even use for ownership:

  1. Is unchanged, since it depends only on fixed cost
  2. Falls to a smaller area
  3. Rises, so ownership needs a larger area
  4. Becomes zero, so ownership always pays
Answer and working

B. Falls to a smaller area

x* = FC/(R − VC). A larger R increases the denominator and lowers x*. It never reaches zero while FC > 0. So ownership pays at a smaller area than before.

6 · Replacement decisions · easy

The economic life of a machine is the age at which:

  1. Its annual repair cost first equals its original purchase price
  2. Its average annual cost of ownership and operation is lowest
  3. Its book value reaches zero
  4. It can no longer be repaired
Answer and working

B. Its average annual cost of ownership and operation is lowest

Economic life minimises average annual cost. A machine can often still be repaired well after that age, and book value depends on the accounting method.

7 · Tractor-implement matching · medium

A tractor can deliver 15 kW at the drawbar at 6 km/h. A harrow has a draft of 3.0 kN per metre of width. What is the widest harrow it can pull at that speed?

  1. 5.0 m
  2. 30 m
  3. 0.83 m
  4. 3.0 m
Answer and working

D. 3.0 m

Available pull = power × 3.6 / speed = 15 × 3.6 / 6 = 9.0 kN; width = 9.0 / 3.0 = 3.0 m. 5.0 m divides power by draft per metre, ignoring speed. 30 m is a factor-of-ten slip; 0.83 m forgets the 3.6 conversion (15/6/3.0).

8 · Tractor-implement matching · medium

While ploughing, a two-wheel-drive tractor shows 30 % wheel slip. What is the most appropriate first action?

  1. Add ballast or reduce the draft load until slip falls into the recommended range
  2. Lower tyre pressure below the minimum rating
  3. Remove ballast to lighten the tractor
  4. Increase engine speed to spin the wheels faster
Answer and working

A. Add ballast or reduce the draft load until slip falls into the recommended range

30 % slip wastes power and wears tyres; more weight on the driving wheels or a lighter load reduces it. Removing ballast would raise slip further. Too little slip, on the other hand, signals excess ballast.

9 · Custom hiring centre economics · medium

After a 40 % capital subsidy, a CHC's net investment is 2,000,000 and its expected net cash inflow is 450,000 per year. What is the simple payback period?

  1. 7.41 years
  2. 4.44 years
  3. 0.225 years
  4. 2.22 years
Answer and working

B. 4.44 years

Payback = investment / annual net inflow = 2,000,000 / 450,000 = 4.44 years. Inverting gives 0.225, the simple return rate, not the payback; 7.41 years uses the gross cost before the 40 % subsidy, which the owner did not pay. 2.22 years uses half the investment, as for an average-investment return (1,000,000/450,000).

10 · Mechanisation policy and subsidies · medium

Under India's mechanisation subsidy schemes, a machine is generally eligible for subsidy only if it:

  1. Has been tested and reported on by a recognised testing institution
  2. Is imported rather than made in India
  3. Is bought through a single national dealer
  4. Has an engine above a fixed power threshold
Answer and working

A. Has been tested and reported on by a recognised testing institution

Scheme guidelines generally require test reports from recognised institutes, such as the Farm Machinery Training and Testing Institutes, to protect buyers and public money. Exact rules are in the current operational guidelines.

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Read the subject

Farm Machinery Management & EconomicsThe full study manual, free Rajasthan PSCFormat, sections and how it has changed

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