Theory question 109
Basic Agricultural Economics(a) Name and explain three factors of production in agriculture.
(b) Mention four functions of a farm manager.
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(a) Any three: land – all natural resources used in farming (soil, water, minerals); fixed in supply; reward is rent; labour – human physical and mental effort, family or hired, skilled or unskilled; reward is wages; capital – man-made assets used to produce more (tools, machines, buildings, money); reward is interest; management/entrepreneur – organises the other factors, takes decisions and bears risks; reward is profit
(b) Any four: planning; organising; decision making; coordinating and supervising workers; controlling/evaluating; record keeping; marketing and buying inputs; staffing
Explain each factor with an example and its reward.