(a) A farmer purchased a tractor in the year 2000 for D 12, 000.00. In
(a) A farmer purchased a tractor in the year 2000 for D 12, 000.00. In 2009, the tractor was
sold for D 3,000.00 as it was no longer economical to keep. Calculate the:
(i) useful life of the tractor;
(ii) salvage value of the tractor;
(iii) total depreciation of the tractor;
(iv) annual depreciation of the tractor.
(b) Describe the following terms as used in agricultural economics:
(i) demand schedule;
(ii) supply curve.
(c) Listfour agricultural extension agencies in West Africa.
(d) Statefour ways through which soils are enriched with nitrogen.
Explanation
(a)Calculations on the tractor
(i)Useful life of the tractor: 2009 – 2000 = 9 years
(ii)Salvage value of the tractor- D3, 000.00
(iii)Total depreciation of the tractor
Total depreciation = Cost price of tractor - Salvage value of tractor
= D12,000.00 - D3,000.00 = D9,000.00
(b) Description of terms
(i)Demand schedule
This is a table showing the relationship between the price of a commodity and the quantity of the commodity demanded.
(ii)Supply curve
This is a graph showing the relationship between the price of a commodity and the
quantity of the commodity supplied.
(c)Agricultural extension agencies in West Africa
- Agricultural Development Programme (ADP)
- Farm settlement scheme
- Agro-service centres
- Research institutes
- Universities of agriculture
- Colleges/schools/faculties of agriculture
- Ministries of agriculture
- Non-Governmental Organizations (NGOs)
- Cooperative societies
- Marketing boards
(d)Ways through which soils are enriched with nitrogen
- Symbiotic nitrogen fixation/planting of legumes
- Non-symbiotic nitrogen fixation
- Electrical discharge/lightning
- Ammonification/decomposition of organic matter
- Nitrification
- Application of organic manure
- Application of inorganic fertilizers
(b) Description of terms
(i)Demand schedule
This is a table showing the relationship between the price of a commodity and the quantity of the commodity demanded.
(ii)Supply curve
This is a graph showing the relationship between the price of a commodity and the quantity of the commodity supplied.