Asked by Clayton Carter on Jun 16, 2024
Verified
Which of the following is not a goal of the "parity concept" in U.S. agriculture policy?
A) Farm households' real income from a given amount of real output should stay the same from year to year.
B) The ratio of prices paid by farm households to prices received by farm households should remain about the same from year to year.
C) The average farm households' income should remain at par or equal to the average income of all households.
D) Changes in the prices paid by farm households should be matched by a proportionate increase in the prices received by farmers.
Parity Concept
A principle in economics that describes a state where the purchasing power of two currencies is equal when a basket of identical goods is priced the same in both countries.
Real Income
The income of an individual or group after adjusting for inflation, reflecting the true purchasing power of the income.
Farm Households
Families living and working on farms, typically involved in agricultural practices and production.
- Comprehend the principle and consequences of equality in agricultural policy.
Verified Answer
BN
bhatini noyuloloJun 21, 2024
Final Answer :
C
Explanation :
The "parity concept" in U.S. agriculture policy is primarily focused on maintaining stable income and price ratios for farm households, rather than ensuring that farm households' income is equal to the average income of all households.
Learning Objectives
- Comprehend the principle and consequences of equality in agricultural policy.