The price parity concept, which is a cornerstone of U.S. agricultural policy, was established by the

A) Agricultural Income Act of 1914.
B) Agricultural Adjustment Act of 1933.
C) Obama administration.
D) Reagan administration.

Price Parity Concept

An economic theory which suggests that in the absence of transaction costs and barriers to trade, identical goods will have the same price in different markets when expressed in the same currency.

Agricultural Policy

A set of laws and guidelines which aim to improve agricultural productivity, manage natural resources, and support farmers' incomes.

Agricultural Adjustment Act

A United States federal law of the New Deal era designed to boost agricultural prices by reducing surpluses, through paying farmers to reduce crop area.