La Habra High School
Applied Arts Department

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Agriculture Education Standards
AGRICULTURE BUSINESS MANAGEMENT

MICROECONOMICS PRINCIPLES
(Examples of Standards)

• understand the relationship between laws of supply and demand.
• define utility, the law of diminishing marginal utility, income effect, and substitution effect.
• define elasticity of supply and demand.
• determine factors that influence sensitivity to price changes.
• make management decisions based on their analysis and interpretation of economic information using appropriate technology.
• distinguish between factors that influence demand vs. factors that influence supply.
• define equilibrium, shortage, and surplus.
• examine how a market economy works.
• define different forms of business ownership.
• analyze gross and net profit, overhead cost, market share, market penetration, competition.
• follow the profit and/or loss of a specific agricultural corporation.
• define fixed and variable costs.
• understand the concept of profit motive.
• analyze how profits and/or loss direct economic activity.
• understand the allocation of resources and the concept of scarcity.
• identify examples of government subsidies and price controls.
• evaluate the role of competition in a market economy.
• compare corporations in modern markets.
• examine the role of modern advertising.
• identify pure competition, monopolistic competition, oligopoly, monoply, and monopsony.
• identify problems associated with each of these market conditions.
• identify the different financial markets and commodity futures.
• know how to read futures tables.
• distinguish between stocks and futures.
• differentiate between stocks, bonds, mutual funds, certificates of deposit, commodities, and annuities.
• identify the diversity of California’s economic activity such as agriculture, technology, entertainment, aerospace, and tourism.
• compare the advantages and disadvantages of sole proprietorship, partnership, corporate, and cooperative business ownership.
• examine the role of cooperatives and labor unions in a modern economy.
• explore union and management relations.
• review the historical formation of unions.
• distinguish between closed and open shop.
• evaluate the collective bargaining agreement process.
• examine the pros and cons of union membership.
• recognize the implications of the minimum wage law.
• trace the natural rate of unemployment.
• define labor force.
• examine the demographics of the labor force.
• acknowledge changes in the labor force.
• define the types of unemployment
• analyze the distribution of income.
• analyze supply and demand in the labor force and the effect on wages.
• maintain California Vocational Record books based on their supervised occupational experience or a simulated class activity.
• use appropriate technology to keep records and generate reports.

MACROECONOMICS PRINCIPLES
(Examples of Standards)

• define gross national product and gross domestic product.
• summarize the effects of inflation (who pays and who benefits).
• construct the business cycle.
• define nominal vs. real in terms of income, gross national product, and inflation.
• calculate GDP using expenditure approach and income approach.
• identify uses and sources for short, intermediate, and long-term credit.
• analyze a cash flow statement to determine the ability to repay loans.
• prepare a budget to reflect planning and profitability for an enterprise.
• identify public or private agricultural organizations and access them using the Internet.
• discuss liability, environmental responsibility, and its economic impact.
• identify sources of labor and factors affecting availability of qualified workers.
• identify the different types of taxes.
• determine the current state of the economy.
• define money, the functions of money, and the types of money.
• define and graph the money demand, the money supply, and the investment demand curves.
• explain the interrelationships of governmental, economic, and cultural factors affecting international trade.

ISSUES OF INTERNATIONAL TRADE

• define absolute advantage and comparative advantage.
• explore modern world geography and data.
• identify major U.S. agricultural trading partners.
• define imports, exports, and the balance of trade.
• identify leading U.S. agricultural imports and exports.
• recognize growth of world trade and the reasons for it.
• define trade embargo and tariffs.
• identify the role of the World Bank and IMF on international trade and development.
• examine the impact of a global economy, including such issues as world trade, oil prices, copyright infringement, and international corporations.
• describe the impacts of multiculturalism in international trade.

LEADERSHIP

• participate in leadership training activities associated with the FFA, including public speaking, leading group discussions, working within a committee, conducting business meetings, and problem solving.