Gce Model Questions Vol1 2020 Agricultural Science Question 46

Practice objective / multiple choice question 46 from the 2020 Gce Model Questions Vol1 Agricultural Science examination.

Gce Model Questions Vol1 2020 Agricultural Science Objective / Multiple Choice Hard Difficulty
Question 46 GCE_MODEL_QUESTIONS_VOL1 • 2020 • AGRICULTURAL_SCIENCE • objective

An extension officer advises a farmer to increase nitrogen fertilizer application by 20% on a wheat field. The baseline yield is 2.5 t ha⁻¹ and the market price is \(\text{\u00A3}120\) per kg. The current fertilizer cost is \(\text{\u00A3}30{,}000\) ha⁻¹. The recommended increase is expected to raise yield by 15% but also raise fertilizer cost by 10%. If the farmer adopts the recommendation fully, a subsidy covers 30% of the additional fertilizer cost; if the farmer adopts only a 10% increase in fertilizer, no subsidy is given. The farmer can choose: (i) no change, (ii) a 10% increase, or (iii) a 20% increase. Which option gives the greatest net profit per hectare?

Answer Options

A. Adopt the 10 % increase; it yields a net profit of \(\text{\u00A3}295{,}200\) per hectare.
Correct Answer B. Adopt the full 20 % increase; it yields the greatest net profit of \(\text{\u00A3}310{,}800\) per hectare.
C. No change; it yields a net profit of \(\text{\u00A3}300{,}000\) per hectare.
D. Adopt the full 20 % increase; it yields a net profit of \(\text{\u00A3}300{,}000\) per hectare.
Correct Answer
B
Correct Option:
Adopt the full 20 % increase; it yields the greatest net profit of \(\text{\u00A3}310{,}800\) per hectare.

About This Question

This is Gce Model Questions Vol1 2020 Agricultural Science Question 46. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Agricultural Science examination.

Difficulty level: Hard .

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