QUESTION 1

1.1 Explain in your own words the difference between the following terms with examples: 1.1.1 Tradable and Non-tradable inputs (10)

1.1.2 Import and Export Parity Prices (10) 1.1.3 Financial and Economic values (10) 1.1.4 Project and Programme (10)

1.2 Is it important to conduct a thorough investment analysis before accepting to undertake an agricultural project? YES or NO. Provide motivation for your answer. (12)

1.3 Many agricultural projects in South Africa for smallholder and emerging farmers have failed. In your opinion what might have been the main reasons for the failure. (12)

QUESTION 2

] 2.1 Explain how you will go about to determine the economic value of farmland and agricultural labour in a proposed agricultural project of any area in South Africa. (12) 2.2 At the end of the third month of an agricultural project implementation, you planned to have completed the work/task at a cost of R3m but discovered that you have in fact completed 40% and have actually spent R2.5m.