Business (Grades 5–12) Subtest 2

Subarea 1. Economics and International Business

0008

Understand fundamentals of microeconomics.

demonstrating knowledge of the role of competitive markets and price in the production, distribution, and allocation of scarce resources within the U.S. economy
demonstrating an understanding of basic economic concepts (e.g., supply and demand, opportunity costs, comparative advantage, diminishing returns, economies of scale, economic trade-offs)
demonstrating an understanding of how economic factors influence the production, allocation, and consumption of goods and services in businesses and households

0009

Understand fundamentals of macroeconomics.

identifying characteristics of different types of economic systems, how they operate, and their underlying philosophical assumptions
identifying interactions and linkages among economic factors (e.g., gross domestic production, consumption, aggregate demand, investment savings, employment, inflation, international trade) and how these factors relate to government policies, including policies on taxation and spending
demonstrating an understanding of the Federal Reserve and other agencies (e.g., U.S. Treasury Department, Securities and Exchange Commission) and their roles in regulating business; promoting economic stability; ensuring a safe, sound money supply; and adjusting the monetary system to respond to economic changes

0010

Understand fundamentals of international business.

demonstrating knowledge of the importance of international business and the effects of international business on careers and business operations at the local, state, national, and international levels
demonstrating an understanding of the economic interdependencies that exist in the global economy and factors (e.g., trade barriers, subsidies, exchange rates) that affect world trade, investment, and monetary flows
demonstrating an understanding of international finance, risk management, marketing, business ownership, and balance of trade
demonstrating an understanding of communication strategies and ethical issues in international business and the social, cultural, political, legal, and economic factors that shape the international business environment