AGRIC. ECONOMICS III (PRODUCTION ECONOMICS)

Household firm relationship.
Gross domestic product (GDP) and Gross National product (GNP). Per Capita Income.
Contribution of Agriculture to national development.
Land as a factor of production.
Labor as a factor of production.
Capital.
Management as a production factor.

By the end of the lesson, the learner should be able to:
Define a household and a firm as business terms.
Describe a household and a firm as producers and consumers and their role in a country's economic growth.
Define the terms GDP & GNP.
Define the term gross national income (GNI).
Define the term per capita income.
Explain contribution of Agriculture to development.
Describe the economic value of production of crops and livestock and space for construction of farm buildings, agro-industries & infrastructure.
List down methods of land acquisition.
Define the term labor as used in production.
Explain ways of improving labor productivity.
Identify types of labor.
Define the term capital.
Identify types of capital.
List sources of capital.
State functions of a manager in a farm.
Identify good qualities of a manager.

Q/A: review definition of economics, production economics.
Exposition & explanations.
Q/A & discussion.
Calculations.
Brain storming;
Discussion.
Exposition of new concepts;
Probing questions to elicit responses;
Brief discussion.
Oral questions & discussion.
Oral questions, exposition & discussion.

resource person
calculator
student book
chart

KLB BK IV
Pg 96-97

Longhorn Bk 4
Pg 20-21

AGRIC. ECONOMICS III (PRODUCTION ECONOMICS)

Production function.
Production function curves.
Increasing returns production functions.
Constant returns production functions.
Decreasing returns production functions.
Law of diminishing returns.
Zones of a PF curve.
The principles of substitution. Input-input relationship.
Product-product relationship. Supplementary and complementary products.
The principle of equi-marginal returns. The concept of cost.
Types of revenue.
Farm planning.
Making a farm plan.
Farm budgeting.

By the end of the lesson, the learner should be able to:
Define production function.
State characteristics of variable and fixed inputs.
Illustrate and interpret input-output relationship graphically.
Illustrate and interpret Increasing returns production functions.
Give empirical examples where increasing returns production functions are experienced.
Constant returns production functions.
Give empirical examples where Increasing returns production functions are experienced.
Decreasing returns production functions.
Give empirical examples where decreasing returns production functions are experienced.
State the law oh diminishing returns.
Divide a production function into three zones.
Identify rational zones of production.
State the principles of substitution.
Give examples illustrating principles of substitution.
Identify ways of combining inputs.
Give examples of product-product relationship.
Give illustrative examples depicting supplementary and complementary products.
State the principle of equi-marginal returns.
Determine the cost of production.
Identify the role of cost in production.
List types of costs.
Compute total revenue, net revenue and marginal revenue given the relevant information.
State factors to consider when drawing a farm plan.
Outline steps followed in making a farm plan.
Define a farm budget.
Analyse importance of farm budgeting.

Q/A: examples of inputs & outputs; variable and fixed inputs;
Brief discussion.
Worked examples: supervised practice.
Tabulate inputs and outputs.
Graphical representation of increasing returns production functions.
Graphical representation of constant returns production functions.
Graphical representation of decreasing returns production functions.
Refer to illustrative tables.
Plot graphs from the tables;
Discuss shape of the curve.
Q/A: review AP, MP.
Guided discovery of the three zones.
Exposition.
Illustrative examples, brief discussion.
Oral questions: joint products, competitive products.
Discussion.
Exposition;
Worked examples.
Worked examples;
Explanations.
Exposition, Q/A & discussion.
Exposition, probing questions & discussion.
Exposition & discussion.

Graph papers.
charts
graphs
Chart - Curve showing 3 zones of PF.
chart

KLB BK IV
Pg 104-6
Longhorn Bk 4
Pg 96-7

AGRIC. ECONOMICS III (PRODUCTION ECONOMICS)
AGRICULTURE ECONOMIC IV (FARM ACCOUNTS)
AGRICULTURE ECONOMIC IV (FARM ACCOUNTS)
AGRICULTURE ECONOMIC IV (FARM ACCOUNTS)
AGRICULTURE ECONOMIC IV (FARM ACCOUNTS)
AGRICULTURE ECONOMIC IV (FARM ACCOUNTS)
AGRICULTURE ECONOMIC IV (FARM ACCOUNTS)
AGRICULTURE ECONOMIC IV (FARM ACCOUNTS)
AGRICULTURAL MARKETING & ORGANIZATIONS
AGRO FORESTRY
AGRO FORESTRY
AGRO FORESTRY
AGRO FORESTRY

Types of farm budgets.
Farmer?s support services Extension, training & banking.
Credit. Sources of credit.
Artificial insemination & Agricultural research.
Marketing. Farm input suppliers Tractor hire service
Risks and uncertainties in farming.
Adjusting to uncertainties and risks.
Financial documents.
Books of accounts.
Cash book.
Journal & Subsidiary books of the Journal.
Financial statements. Balance sheet.
Solvency of a business.
Profit and loss account.
Market and marketing.
Types of markets. Monopoly. Oligopoly & Monopsony.
Price theory and demand.
Factors affecting demand for a commodity.
Elasticity of demand.
Factors affecting elasticity of demand.
Supply & Supply-price relationship.
Factors affecting supply of a commodity.
Elasticity of supply (Es).
Determination of market prices.
Price control. Marketing and marketing function.
Marketing organizations and agencies. Wholesalers & retailers.
Itinerant traders, broker agents & commission agents.
Packers and processors, marketing boards & auctioneers.
Special characteristics of Agricultural products.
Agricultural organizations. Kenya sugar authority, Horticultural crops Development Authority, AFC, ADC, and KMC.
Other Farmers? Associations: KNFU, ASK, 4K-club, YF club.
Co-operative societies.
Definition of Agroforestry. Forms of agroforestry.
Importance of agroforestry.
Tree nursery.
Nursery management practices & Care and management of trees.

By the end of the lesson, the learner should be able to:
Describe types of farm budgets.
Give examples of contexts where certain types of budgets are used.
Draw a partial budget.
Draw a complete budget.

Describe extension, training & banking as support services to the farmers.
Define the term credit.
Identify types of credit.
Differentiate between hard & soft credit.
List down sources of credit.
Identify problems associated with credits.
Describe A.I. services provided to farmers.
Identify objectives of Agricultural research.
Give examples of Agricultural research centers in Kenya.
Cite examples of organizations that help farmers in marketing their produce.
Cite organizations where farmers can obtain farm inputs.
State merits & demerits of tractor hire service.
Cite points of tractor hire service.
Define the terms risk and uncertainty.
List types of risk and uncertainties.
Outline ways of adjusting to risks and uncertainties.
Outline details contained in an invoice, receipt, delivery note and a purchase order.
Describe features of the ledger and the inventory.
Describe features of the cash book.
Balance cash book.
Describe features of the journal & subsidiary books of the journal.
Describe features of balance sheets.
Prepare a balance sheet.
Determine whether a business is solvent or insolvent.
Define a profit and loss account.
Draw a profit and loss A/C.
Compute net profit.
Define the term market as an institution.
Distinguish between a perfect and imperfect market.
Identify features of a monopolistic competition in a market, oligopolistic and monopsonistic markets.
Define the terms price & demand.
Sketch the demand curve.
Explain the term demand schedule.
Outline factors affecting demand for a commodity.
Explain the concept of elasticity of demand.
Illustrate demand for a commodity.
Calculate elasticity of demand.
Identify types of elasticity of demand.
Illustrate elastic, inelastic & unitary demand graphically.
State factors affecting elasticity of demand.
Define the term supply.
Illustrate supply-price relationship.
State & explain factors affecting supply of a commodity.
Define elasticity of supply (Es).
Calculate (Es)
Explain how market prices are determined.
Determine the equilibrium or market prices of a commodity in a free market.
Explain the role of government in price control.
Define marketing and marketing function.describe tingfunction. a market.
Explain the arbitrage role of a wholesaler.
Identify services provided by retailers.
Outline the functions of Itinerant traders, broker agents & commission agents in a market.
Outline functions of packers and processors, marketing boards & auctioneers in a market.
Describe bulkiness, weight, volume, seasonality and perishability of Agricultural products.
Outline the functions of Kenya sugar authority, Horticultural crops Development Authority, AFC, ADC, and KMC.
Outline the functions of other Farmers? Associations such as KNFU, ASK, 4K-club, YF club.
Outline the principles of co-operatives.
Highlight functions of co-operatives.
Define the term agroforestry.
Describe forms of agroforestry.
Explain the importance of agroforestry.
State factors considered when selecting the nursery site.
Describe treatment of nursery seeds.
Identify practices carried out on the nursery in order to produce healthy tree seedlings.
Describe the care and management of trees.

Exposition & discussion,
Worked examples;
Supervised practice;
Written exercises.
Exposition & explanations.
Detailed discussion
& exposition of new concepts.
Writing initials in full e.g. KPCU.
Brief discussion
Brain storming;
Detailed discussion.
Oral questions & brief discussion.
Illustrative tables.
Illustrative examples.
Make entries in a balance sheet.
Prepare a balance sheet.
Supervised practice.
Teacher gives format of profit and loss A/C.
Worked examples.
Q/A: definition.
Teacher?s explanations.
Brain storming;
Exposition;
Discussion.
Curve sketching & explanations.
Q/A, discussion & explanations.
Graphical illustration.
Worked examples. Supervised practice.
Graphical representation of demand.
Explanations.
Sketching supply-price curves.
Refer to supply schedules.
Q/A & detailed discussion.
Q/A: review Ed hence defines Es.
Worked examples.
Supervised activity.
Teacher?s explanation.
Q/A : review demand and supply curves.
Plot both curves.
Interpret the graphs.
Exposition & explanation.
Oral questions & detailed discussion
Probing questions,
Brief discussion
Assignment.
Probing questions, brief discussion, & teacher?s explanations.
Probing questions & explanations.
Q/A & discussions.
Discussion;
Practical activities ? transplanting seedlings.

chart
student book
resource person
Invoice, receipt, delivery note and a purchase order.
Cash book.
Balance sheet.
chart 
student book
chart
graph
Tree nurseries.

KLB BK IV
Pg 124-7

Longhorn Bk 4
Pg 110-1




KLB BK IV
Pg 164

Longhorn Bk 4
Pg 137