If Prices Received by Farmers Decline and Prices Paid by Farmers

question 128

True/False

If prices received by farmers decline and prices paid by farmers increase, the parity ratio will decline.

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Definitions:

Excise Tax

A type of tax charged on goods produced within the country; it is often levied on items such as alcohol, tobacco, and gasoline.

Hamburgers

A widely favored dish made up of a grilled or fried patty of minced meat, typically beef, served between slices of a bun or roll.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus how much they actually receive.

Blue Jeans

Denim trousers that are typically dyed with indigo and have become a significant fashion item and symbol of Western culture.