Asked by thomas suggs on Jul 12, 2024

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If in a certain year the indices of prices received and paid by farmers were 115 and 142, respectively, the parity ratio (in percentage terms) would be approximately

A) 123.
B) 81.
C) 69.
D) 27.

Parity Ratio

A measure used to compare the value of one form of a commodity (e.g., agricultural produce) to another, often with respect to trade or exchange rates.

Indices

Statistical measures that track changes in a representative group of individual data points, often used to assess economic and financial performance.

  • Identify the concepts of parity ratio and how it is affected by changes in prices received and paid by farmers.
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SD
Stephany DeleonJul 17, 2024
Final Answer :
B
Explanation :
The parity ratio is calculated as (index of prices received / index of prices paid) * 100. So, (115 / 142) * 100 = approximately 81.