Asked by Autumn Gilbert on Jul 14, 2024
Verified
What is the parity concept? Write the equation for the parity ratio.
Parity Concept
A principle stating that different currencies should have the same purchasing power in different countries, once adjusted for exchange rates.
Parity Ratio
The ratio between the prices of various goods or services, often used in agriculture and trade to compare values.
- Understand the critiques and reasoning underlying agricultural policies and state subsidies.
Verified Answer
MM
Marni MaresJul 16, 2024
Final Answer :
The parity concept is the idea that year after year the sale of a specific output of a farm product should enable a farmer to purchase a constant amount of nonagricultural goods and services. The parity ratio equation is expressed as a percentage and found by: Parity ratio = Prices received by farmers/Prices paid by farmers.
Learning Objectives
- Understand the critiques and reasoning underlying agricultural policies and state subsidies.
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