Asked by Shanda Harrison on May 26, 2024
Verified
The concept of parity has provided a rationale for government price supports for farm products.
Parity
The state of being equal or equivalent in terms of value, status, or quantity.
Government Price Supports
Financial subsidies or regulation mechanisms employed by governments to maintain the market price of a commodity or service above market level.
Rationale
The underlying reason or logical basis for a decision, action, or belief, often used in argumentation or analysis.
- Understand the concepts and calculations involved in parity and its relevance to agricultural economics.
Verified Answer
BS
Baila SkendzielMay 29, 2024
Final Answer :
True
Explanation :
The concept of parity is used to justify government price supports for farm products by aiming to ensure that farmers receive a fair price relative to the cost of inputs and living expenses, thus maintaining their income stability and purchasing power over time.
Learning Objectives
- Understand the concepts and calculations involved in parity and its relevance to agricultural economics.