- -   AGRICULTURE CORE CURRICULUM  - -

(CLF1000)  Advanced Core Cluster:  AGRICULTURAL BUSINESS MANAGEMENT

    (CLF1200)  Unit Title:  Economic Principles

          UNIT DIRECTORY:

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        Code         Topic Title                          Hours    Year(s)
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       (CLF1201)      Introduction to Economic             2        3 / 4
                      Principles

       (CLF1202)      Supply, Demand, and Price            5        3 / 4
                      Determination

       (CLF1203)      Physical Production Relation-        3        3 / 4
                      ships, Values, and Profit
                      Maximizing Level of Input Use

       (CLF1204)      Fixed and Variable Costs,            4        3 / 4
                      Marginal Costs and Marginal 
                      Revenue, Profit Maximizing 
                      Level of Output

       (CLF1205)      Diversification and                  2        3 / 4
                      Specialization

       (CLF1206)      Combination of Enterprises           1.5      3 / 4

       (CLF1207)      Managing Risk                        1.5      3 / 4

       (CLF1208)      Economics Terminology                --       3 / 4

       (CLF1249)      Unit Exam                            1        3 / 4

                                    TOTAL TIME FOR UNIT = 20
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UNIT GOAL:  Students will understand basic economic principles as they relate 
            to agribusiness and agriculture.
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UNIT OBJECTIVES: Upon completion of this unit, students will be able to:

 1.  Describe the basic economic factors that affect farm and agribusiness 
     management decisions.

 2.  Describe how supply and demand affect prices.

 3.  List factors that shift the supply and demand curves.

 4.  Distinguish among supplementary, complementary, competitive, and 
     independent enterprises.

 5.  List the advantages and disadvantages of diversification and
     specialization.


 6.  Explain the importance of agribusiness and its impact on the gross 
     national product and the total economy.

 7.  Use economic decision-making tools to increase the profitability of 
     agricultural enterprises.

 8.  Describe the concept of diminishing returns.

 9.  Distinguish between fixed and variable costs.

10.  Distinguish between marginal cost and marginal revenue.

11.  Calculate the estimated fixed cost and variable costs for an
      agricultural commodity.

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REFERENCES:

Casavant, K., & Infanger, C.  (1984).  ECONOMICS & AGRICULTURAL MANAGEMENT: AN 
  INTRODUCTION.  Reston, VA: Reston Publishing.

Castle, E. N., Becker, M. H., & Nelson, A.G.  (1987).  FARM BUSINESS
  MANAGEMENT: THE DECISION-MAKING PROCESS (3rd ed.).  New York: Macmillan.

Cramer, Gail L., & Jensen, Clarence W.  (1991).  AGRICULTURAL ECONOMICS AND
  AGRIBUSINESS (4th ed.).  New York: John Wiley & Sons.

Leftwich, R. H. (1976).  THE PRICE SYSTEM AND RESOURCE ALLOCATION (6th ed.).
  Hinsdale, IL: Dryden Press.

Luening, R. A., Klemme, R. M., & Mortenson, W. P. (1991).  THE FARM MANAGEMENT 
  HANDBOOK (7th ed.).  Danville, IL: Interstate Publishers.

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RESOURCES:

Deere & Company.  (1987).  FARM AND RANCH BUSINESS MANAGEMENT (2nd ed.).
  Available from: John Deere Technical Services, Department F, John Deere 
  Rd., Moline, IL  61265.

Baker, Richard L. (Ed.).  (1970).  PROFIT-MAXIMIMIZING PRINCIPLES.  Available 
  from: Instructional Materials Laboratory, University of Missouri, 22316 
  Industrial Drive, Columbia, MO  65202

Looney, J. W.  (1983).  BUSINESS MANAGEMENT FOR FARMERS.  Available from:
  Doane Information Services, 11701 Borman Drive, St. Louis, MO  63146.

University of Missouri-Columbia.  (1988).  AGRICULTURAL MANAGEMENT AND 
  ECONOMICS: Instructor's Guide (Unit I:  Economic Principles in Agriculture).  
  Available from: Instructional Materials Laboratory, University of Missouri, 
  22316 Industrial Drive, Columbia, MO  65202


12/2/91  LM/GB/sg


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