Agricultural Economics & Marketing is one of 9 topics in the Grade 12 Agricultural Sciences CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. Gross margin is calculated as:
Total income minus total variable costs
Total income plus total variable costs
Total variable costs minus total income
Total fixed costs minus total variable costs
Answer: Total income minus total variable costs — Gross margin = Total Income - Total Variable Costs, showing an enterprise's profitability before accounting for fixed costs.
Easy
2. Which of the following is a variable cost, changing directly with the level of production?
Fertiliser
Land rates
A permanent staff member's fixed monthly salary
The purchase price of a tractor (capital cost)
Answer: Fertiliser — Fertiliser use scales with the area planted and production level, making it a variable cost, unlike fixed costs such as land rates or permanent salaries.
Medium
3. A maize enterprise earns total income of R84 000 and has total variable costs of R51 000. Calculate the gross margin in Rand.
Answer: 33000 — Gross margin = Total Income - Total Variable Costs = R84 000 - R51 000 = R33 000.
