RPSC Veterinary Officer Livestock Economics, Marketing & Business Management: practice questions

Question 1 · medium

Despite economies of scale, smallholder dairying with one to five animals persists across South Asia mainly because:

1. Small herds have higher milk yield per cow than large herds in every breed, every season and every agro-climatic zone of the region
2. Governments ban private dairy farms above five animals in most South Asian states and districts
3. Smallholders face no fixed costs at all because their animals are kept without any shed or equipment
4. Family labour and crop residues have low opportunity cost, and cooperatives give scale in collection and processing

Question 2 · easy

The first cooperative creamery in Denmark, which became a template for dairy cooperatives across northern Europe, was founded in:

1. 1844
2. 1946
3. 1882
4. 2001

Question 3 · medium

Phase I of Operation Flood was financed largely by:

1. A loan from the World Bank, repaid out of the profits earned by the state cooperative milk federations
2. A cess on all milk sold by private dairies in the four metropolitan cities
3. Sale in India of skim milk powder and butter oil donated through the World Food Programme
4. Grants from state governments matched by the share capital of village societies

Question 4 · easy

The three Rs of farm credit are:

1. Returns, repayment capacity and risk-bearing ability
2. Rate of interest, repayment period and rebate on prompt payment
3. Records, registration and refinance from a development bank
4. Resources, recovery and rescheduling of overdue loans

Question 5 · easy

What is the main role of an apex agricultural or rural development bank in livestock lending?

1. Refinancing lenders and setting model schemes for livestock units
2. Lending directly to every farmer at below-market rates
3. Insuring each animal bought with a bank loan
4. Setting the retail price of milk and meat

Question 6 · easy

A cow is insured for a sum of 60,000 currency units at an annual premium rate of 3 per cent, and a government scheme pays half the premium. What does the owner pay?

1. 1,800 currency units
2. 9,000 currency units
3. 900 currency units
4. 90 currency units

Question 7 · easy

The principle of indemnity in livestock insurance means that:

1. The owner is paid twice the sum insured if the animal dies of disease
2. The insurer pays the premium back if no claim is made during the year
3. Compensation restores the owner's actual loss and no more
4. The veterinarian is responsible for any loss caused by a wrong diagnosis

Question 8 · medium

Under a conventional individual cattle insurance policy, which loss is commonly excluded from cover?

1. Death from an infectious disease during the policy period
2. Death from an accident such as a fall or snakebite
3. Theft of the insured animal
4. Death from a surgical operation done by a veterinarian

Question 9 · easy

Under the SPS Agreement, the international standard-setting body for animal health and zoonoses is:

1. The Codex Alimentarius Commission
2. The International Plant Protection Convention
3. The World Health Organization
4. The World Organisation for Animal Health

Question 10 · easy

A livestock project is acceptable on the benefit-cost ratio criterion when the BCR, at the chosen discount rate, is:

1. Greater than 0
2. Less than 1
3. Equal to the discount rate
4. Greater than 1