Agricultural Education (Grades 5–12) Subtest 2

Subarea 1. Management, Economics, Trade, and Marketing

0009

Demonstrate knowledge of business and resource management and managerial accounting and bookkeeping.

identifying business management functions (e.g., planning, organizing, leading, controlling) and their applications in agricultural business
identifying types of agricultural business organizations (e.g., partnership, corporation, cooperative)
demonstrating knowledge of entrepreneurship and issues associated with starting an agricultural business
demonstrating knowledge of basic financial management (e.g., budgeting, using credit, managing risk) and accounting and bookkeeping procedures
demonstrating knowledge of legal and ethical issues in agricultural business

0010

Understand agricultural economics and trade.

demonstrating understanding of basic principles of economics (e.g., supply and demand, competition, production, comparative advantage) and their application to agricultural business
identifying relationships among economic factors (e.g., production, consumption, inflation) and government policies (e.g., taxation, spending, price supports) and their effect on agricultural business
demonstrating knowledge of factors that affect the global economy (e.g., population and demographic changes, cultural values, monetary and financial policies) and the role of international agencies (e.g., the World Bank, International Monetary Fund) in promoting global economic stability and reducing poverty
identifying factors (e.g., tariffs and other trade barriers, exchange rates) that affect international agricultural trade and domestic agricultural production
demonstrating knowledge of the influence of international markets and international trade agreements (e.g., NAFTA, World Trade Organization) on U.S. agriculture

0011

Understand agricultural marketing.

identifying marketing strategies (e.g., market segmentation) and steps (e.g., conducting market research, forecasting, developing a marketing plan, identifying target markets) in marketing agricultural products
demonstrating knowledge of the diversity of agricultural products and services, the application of the value-added concept to the development of agricultural products, and the distribution of agricultural products and services
demonstrating knowledge of basic principles of product pricing and promotion and their application to marketing agricultural products and services
demonstrating knowledge of consumer behavior and the selling process