Asked by keriesha smith on Jun 26, 2024
Verified
The parity ratio
A) compares worker productivity in the farm and nonfarm sectors.
B) is the ratio of per capita farm income to per capita nonfarm income.
C) is the ratio of prices received by farmers to prices paid by farmers.
D) is the ratio of prices paid by farmers to prices received by farmers.
Parity Ratio
A ratio used to compare the value of one thing to another, such as the price of a commodity to the price of a set of other goods or incomes.
Prices Received
The amount of money sellers actually receive for the goods or services they sell, after discounts, allowances, and deductions.
Prices Paid
The amount of money spent by purchasers to acquire goods and services.
- Gain insight into how domestic and international agricultural policies affect trade, prices, and production.
Verified Answer
JY
Jaswanthi YandrapuJun 30, 2024
Final Answer :
C
Explanation :
The parity ratio is the ratio of prices received by farmers for their products compared to the prices they pay for goods and services, used as an indicator of the economic health and equity of agricultural pricing.
Learning Objectives
- Gain insight into how domestic and international agricultural policies affect trade, prices, and production.