(a) Explain briefly each of the following economic concepts (i) scarcity (ii) scale of preference (b) Give four reasons why agricultural insurance is import...

Answer Details

(a) Economic concepts:

• (i) Scarcity: Scarcity means that the resources (land, labour, capital) available to satisfy people's wants are limited relative to the unlimited wants. Because resources are limited, choices must be made.
• (ii) Scale of preference: A scale of preference is a list of a person's wants arranged in order of their importance, with the most pressing want at the top, so that the most urgent needs are satisfied first with the limited resources.

(b) Four reasons why agricultural insurance is important:

• It pays compensation to the farmer for losses from fire, flood, drought, pests or disease.
• It gives the farmer confidence to invest and expand the farm.
• It makes it easier for the farmer to obtain loans, since the insured farm is used as security.
• It spreads/reduces the risk of farming and keeps the farmer in business after a disaster.

(c) Five fishery regulations in West Africa:

• Use of nets with the approved (large) mesh size to protect young fish.
• Ban on the use of poisons, chemicals and explosives in fishing.
• Closed seasons during which fishing is prohibited to allow fish to breed.
• Licensing/registration of fishermen and fishing boats.
• Prohibition of catching immature/undersized fish and fishing in restricted zones.

(d) Five reasons why beekeeping is important:

• It produces honey used as food and medicine.
• It produces beeswax used in industry (candles, cosmetics, polishes).
• Bees pollinate crops and so increase crop yield.
• It provides income and employment to farmers.
• It requires little land and capital to start.