A Parity Ratio of 0

question 171

Multiple Choice

A parity ratio of 0.6 in year A means that prices

• A)received in year A could buy 60 percent as much as prices received in the base period.
• B)received in the base period could buy 60 percent as much as prices received in year A.
• C)received in year A had risen by 60 percent over the prices received in the base period.
• D)paid by farmers in year A had risen by 60 percent over the prices paid in the base period.

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Definitions:

Dominance of Markets

A situation where one or few entities exert a disproportionate control over the sales, distribution, or characteristics of goods and services in a market.

Industrial Regulation

The imposition of rules by the government on firms and industries to promote competition, control monopoly power, protect consumers, and regulate prices and service quality.

Production Costs

Expenses incurred in the process of manufacturing or producing goods, including materials, labor, and overhead costs.