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National Licensure Examination for Veterinarians Livestock Economics, Marketing & Business Management: practice questions

National Licensure Examination for Veterinarians (NLEV) · Nepal · Nepal Veterinary Council (NVC Act 2055 BS)

Original practice questions written to the published syllabus · not past papers
10worked here, free
19written to this exam in this subject
8syllabus units

About National Licensure Examination for Veterinarians

National Licensure Examination for Veterinarians (NLEV) is a licensing and registration exam run by Nepal Veterinary Council (NVC Act 2055 BS), for candidates in Nepal. 100 MCQs with 4 options, 100 marks, negative marking of -0.25, pass at 40% aggregate. Three sittings a year. 90 minutes.

Source: vcn.gov.np.

Checked against the exam body's published information. Formats and fees change; confirm the current edition there before you book.

Livestock Economics, Marketing & Business Management in National Licensure Examination for Veterinarians

The economics of livestock production and trade: costs, markets, cooperatives, credit, insurance, trade rules and project appraisal.

Our 19 National Licensure Examination for Veterinarians questions in this subject: 10 easy, 9 medium, 0 hard, across 8 units.

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.

These 10 were written to National Licensure Examination for Veterinarians and are not shown on any other exam's page.

Question 1 · easy

A farmer's own family labour is charged in a full cost of production even though no wages are paid. The economic idea behind this is:

  1. Sunk cost, a past expense that has to be recovered from the next sale
  2. Marginal cost, the extra cost of producing one more litre of milk
  3. Opportunity cost, the return the labour would earn in its next best use
  4. Fixed cost, a charge that stays the same whatever the herd produces
Answer and working

C. Opportunity cost, the return the labour would earn in its next best use

Opportunity cost values a resource at what it would earn elsewhere, which is why family labour, owned land and owned capital are imputed. Sunk costs are past and irrelevant to decisions; marginal and fixed costs describe how costs behave with output.

Question 2 · easy

Economies of scale on a livestock farm means that:

  1. Output rises in exact proportion when every input is increased together
  2. Average cost per unit of output falls as the scale of output rises
  3. Marginal product of each added cow rises as the herd gets bigger
  4. Total cost of the farm falls as more animals are added to the herd
Answer and working

B. Average cost per unit of output falls as the scale of output rises

Economies of scale is a cost concept: cost per unit falls with output. Proportional output response to scaling all inputs is constant returns to scale, a physical concept. Total cost rises with output; it is average cost that falls.

Question 3 · medium

A layer flock housed 1,000 hens; the average number alive over the laying year was 950, and the flock laid 275,500 eggs. What was the hen-day egg production per hen?

  1. 275.5 eggs
  2. 261.7 eggs
  3. 305 eggs
  4. 290 eggs
Answer and working

D. 290 eggs

Hen-day production = eggs / average hens alive = 275,500 / 950 = 290. Hen-housed production = eggs / hens housed = 275,500 / 1,000 = 275.5. Hen-day exceeds hen-housed whenever birds die. 261.7 multiplies 275.5 by 0.95 instead of dividing, and 305 corrects for mortality twice (290 ÷ 0.95).

Question 4 · medium

Twenty kids are raised to 25 kg live weight at a total cost of 96,000 currency units. The dressing percentage is 48. What is the cost per kg of carcass?

  1. 192 currency units
  2. 400 currency units
  3. 92.16 currency units
  4. 4,800 currency units
Answer and working

B. 400 currency units

Live weight = 20 × 25 = 500 kg; carcass = 500 × 0.48 = 240 kg; cost per kg carcass = 96,000 / 240 = 400 currency units. 192 currency units is per kg live weight; 92.16 currency units multiplies by the dressing percentage instead of dividing; 4,800 currency units is cost per head.

Question 5 · easy

In the classification of marketing functions, grading and standardisation of animals and their products is a:

  1. Exchange function
  2. Physical function
  3. Processing function
  4. Facilitating function
Answer and working

D. Facilitating function

Exchange functions are buying and selling; physical functions are assembly, transport, storage and processing; facilitating functions are grading and standardisation, financing, risk bearing and market information.

Question 6 · medium

In a typical contract broiler arrangement in South Asia, which party supplies the chicks, feed and medicines?

  1. The grower, while the integrator only buys the finished birds at the market price of the day
  2. A cooperative of growers, while the integrator provides credit for the shed and the equipment
  3. The integrator, while the grower provides shed and labour and earns a growing charge per kg
  4. The state animal husbandry department, while the integrator provides transport to markets
Answer and working

C. The integrator, while the grower provides shed and labour and earns a growing charge per kg

In integrated broiler production the integrator supplies chicks, feed, medicines and technical supervision and takes the birds; the grower supplies housing and labour and is paid a growing charge per kg, often adjusted for FCR and mortality. Buying finished birds at the day's price is open-market selling, not contract growing.

Question 7 · easy

Engel's law, used to explain growing demand for livestock products, states that as household income rises:

  1. The proportion of income spent on food rises
  2. Total spending on food falls
  3. The proportion of income spent on food falls
  4. The demand for staples rises faster than for animal products
Answer and working

C. The proportion of income spent on food falls

Engel's law: the share of income spent on food falls as income rises, although total food spending rises. Within food in low- and middle-income countries, demand for milk, meat and eggs rises faster than for staples, which drove the Livestock Revolution.

Question 8 · easy

The modern cooperative movement traces its origin to:

  1. The Kaira milk producers' union in 1946
  2. The first Danish cooperative creamery in 1882
  3. The International Co-operative Alliance statement of 1995
  4. The Rochdale Pioneers in England in 1844
Answer and working

D. The Rochdale Pioneers in England in 1844

The Rochdale Society of Equitable Pioneers (1844) set out the principles from which the ICA principles developed. The Danish creameries (1882) and the Kaira union (1946) came later and drew on that tradition; the 1995 ICA statement restated the principles rather than starting the movement.

Question 9 · easy

In a bank-financed dairy project, margin money refers to:

  1. The share of the project cost that the borrower contributes from own funds
  2. The interest margin the bank earns above its own cost of funds
  3. The difference between the milk price and the cost of production
  4. The subsidy paid by government directly into the loan account
Answer and working

A. The share of the project cost that the borrower contributes from own funds

Margin money is the borrower's own contribution to the unit cost; the bank lends the rest. The lender's interest spread and the farmer's profit margin are different ideas; a subsidy is separate from the borrower's margin.

Question 10 · medium

An owner insures a cow without telling the insurer that she has had chronic mastitis for months. Which principle has the owner breached?

  1. Indemnity
  2. Utmost good faith
  3. Subrogation
  4. Insurable interest
Answer and working

B. Utmost good faith

Utmost good faith (uberrima fides) requires disclosure of all material facts, such as existing disease. Non-disclosure allows the insurer to avoid the policy. The owner does have insurable interest, and indemnity and subrogation concern how claims are settled.

A study plan for Livestock Economics, Marketing & Business Management in National Licensure Examination for Veterinarians

This plan follows where our questions actually fall, so the time goes where the marks are likely to be. It is our reading of the syllabus, not the exam body's weighting.

  1. First, the heavy units (53% of the 19 questions): Livestock marketing (4, 21%); Cost of production (3, 16%); Farm size and scale (3, 16%).

    Read the manual chapters for these first and do every worked question you can find on them.

  2. Then the middle band: Livestock insurance (3, 16%); Cooperatives (2, 11%); Production economics (2, 11%).

    Aim for one sitting per unit, then mixed questions across them.

  3. Then the lighter units: Livestock credit (1, 5%); WTO and the SPS Agreement (1, 5%).

    Learn the definitions, classifications and standard numbers; these units are more often recalled than worked.

  4. Bank the easy marks: Production economics (2 easy of 2); Livestock credit (1 easy of 1).

    Do these early in revision so they are fast on the day.

  5. Finish timed. Sit the subject as a timed set without notes, mark it, and send each wrong answer back to its unit above.

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