Determine the cost price of a tractor that has a salvage value of Le 200,000, a useful life of 10 years and an annual depreciation of Le 40,000.

Let's solve the questions from the image.

Question (un-numbered, regarding demand elasticity):
Demand is said to be elastic when:
A. a small change in price results in a large change in demand.
B. a change in price results in a small change in demand.
C. a change in price results in an equal change in demand.
D. the unit elasticity of demand is less than one.

• Step 1: Understand the definition of elastic demand. Elastic demand occurs when the percentage change in quantity demanded is greater than the percentage change in price. This means a small change in price leads to a relatively large change in demand.
• Step 2: Evaluate the given options.
  • Option A correctly describes elastic demand.
  • Option B describes inelastic demand.
  • Option C describes unit elastic demand.
  • Option D describes inelastic demand (where elasticity is less than one).

The correct option is A.
$\boxed{\text{A}}$

Question (un-numbered, regarding tractor cost price):
Determine the cost price of a tractor that has a salvage value of Le 200,000, a useful life of 10 years and an annual depreciation of Le 40,000.
A. Le 60,000
B. Le 200,000
C. Le 240,000
D. Le 600,000

• Step 1: Calculate the total depreciation over the useful life. Total Depreciation = Annual Depreciation $\times$ Useful Life $$\text{Total Depreciation} = \text{Le } 40,000 \times 10 \text{ years} = \text{Le } 400,000$$
• Step 2: Calculate the cost price. The cost price is the sum of the total depreciation and the salvage value. $$\text{Cost Price} = \text{Total Depreciation} + \text{Salvage Value}$$ $$\text{Cost Price} = \text{Le } 400,000 + \text{Le } 200,000 = \text{Le } 600,000$$

The correct option is D.
$\boxed{\text{D}}$

Question 49:
In the profit and loss account, a loss is made when:
A. total revenue exceeds total cost.
B. total revenue equals total cost.
C. total cost exceeds total revenue.
D. total revenue equals average cost.

• Step 1: Understand the definition of a loss in accounting. A loss occurs when the total expenses incurred are greater than the total revenue generated.
• Step 2: Evaluate the given options.
  • Option A describes a profit.
  • Option B describes a break-even point (no profit, no loss).
  • Option C correctly describes a loss.
  • Option D is not the definition of a loss in a profit and loss account.

The correct option is C.
$\boxed{\text{C}}$

Question 50:
Which of the following activities are functions of agricultural cooperative societies?
I. Provision of extension services to farmers
II. Transportation of farm produce to markets
III. Bulk purchase of farm inputs
A. I and II only
B. I and III only
C. II and III only
D. I, II and III

• Step 1: Analyze each statement in the context of agricultural cooperative societies.
  • I. Provision of extension services to farmers: Agricultural cooperatives often provide or facilitate access to training, advice, and technical support to improve members' farming practices. This is a common function.
  • II. Transportation of farm produce to markets: Cooperatives help members collectively market their produce, which includes organizing transportation to markets to achieve better prices and reduce individual logistical burdens. This is a common function.
  • III. Bulk purchase of farm inputs: By purchasing inputs like seeds, fertilizers, and equipment in large quantities, cooperatives can secure lower prices for their members, reducing their production costs. This is a common function.
• Step 2: Determine which combination of activities is correct. All three listed activities are typical functions of agricultural cooperative societies.

The correct option is D.
$\boxed{\text{D}}$