We model and estimate the decision to answer questions in multiple choice tests with negative marking. Our focus is on the trade-off between precision and fairness. Negative marking reduces guessing, thereby increasing accuracy considerably. However, it reduces the expected score of the more risk averse, discriminating against them. Using data from the Turkish University Entrance Exam, we find that students' attitudes towards risk differ according to their gender and ability. Women and those with high ability are significantly more risk averse: nevertheless, the impact on scores of such differences is small, making a case for negative marking.

We analyse a balanced panel of 250 farms in Western Australia using convergence analysis, examining changes in the relative size, output composition and financial performance of small, medium and large farms over the decade 2002–2011. Fitted exponential growth rates in key variables allow us to determine whether differences between small, medium and large farms are narrowing or widening. Although farms in each size category grew on average, there was no significant change in the relative size of farms. Contrasting with earlier studies, smaller farms displayed a relative improvement in their performance, catching up to medium and larger farms.

We analyse a rich panel dataset of farm production to determine the potential for broadacre farms in Western Australia to increase productivity through exploiting economies of scale and increasing technical efficiency. Using stochastic frontier analysis, we find that the majority of farms are operating below the optimal scale and would benefit from expansion, suggesting that a documented trend towards larger farms is desirable. We also observe a reasonable proportion of farms significantly below the efficient frontier, while differences between regional production functions and the metafrontier further contribute to inefficiency. Determinants of technical inefficiency were examined in the efficiency effects model; the adoption of technologies was aligned with reducing inefficiency, particularly in the cropping sector. This suggests the deployment of existing technologies should be a priority for both farmers and policy‐makers to further improve the efficiency of broadacre farms.