Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

Parity Price is a price which maintains the ratio of prices received and paid through farmers at the same ratio as in a base year. Parity price of, state, corn, is a price of corn which keeps farmers as well off relatively as they were in the specified base year (the average of prices in years 1920 -1914). If farmers received the parity price for corn, the ratio of prices received by farmers for that corn to prices paid by farmers would always be similar as it was in the base year. For illustration, say the base year price of corn was $3 a bushel and the price paid by farmers for the composite of manufactured goods was $4. If the price of manufactured goods increases to $6 a bushel (an increase of 50%), the parity price of corn as well increases by 50% to $4.50 in this hypothetical illustration.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M99990

Have any Question? 


Related Questions in Macroeconomics

Why is it important for the prices of goods to reflect

Why is it important for the prices of goods to reflect their true costs of production? What happens when they do not? What policies could be enacted to internalize the full costs? Illustrate one graphically.

If you are investing 500000 today in a company that is

If you are investing $500,000 today in a company that is promising to pay $1,000,000 at the end of 20 years, what is your expected rate of return for this investment? 50.2% 4.35% 12% 10% 3.53% 20%

How would the assumption of perfect information in the

How would the assumption of perfect information in the theory of perfect competition render advertising utterly ineffective?

Topic nbspfree trade - pro or conafter reading the heritage

Topic.  Free Trade - Pro or Con? After reading the Heritage Foundation's guide for policy-makers, give one example from your own life of of a way in which you have benefitted from free trade.  Is there any way in which y ...

Using an is-lm model under a flexible exchange rate regime

Using an IS-LM model, under a flexible exchange rate regime, show how the domestic economy reacts to a decrease in foreign income. Is there a real response in the economy in terms of output levels?

A describe five 5 ecosystem goods and services of the

a.) Describe five (5) ecosystem goods and services of the Neponset River Watershed. b.) Assign dollar ($) values to these 5 ecosystem goods and services of the Neponset River Watershed. Please be clear about how you asse ...

1 we have read about medical etiquette standards and ethics

1. We have read about medical etiquette standards and ethics. What is the difference between medical etiquette and ethics? Provide examples and explain why it is necessary to understand this distinction. 2. Describe the ...

You are interested in ins investing in a private company

You are interested in ins investing in a private company. Based on earnings multiples of similar publicly traded firms, you estimate the value of the private company's stock to be $ 13.44 per share. You plan to acquire a ...

Do you agree or disagree with one of the following

Do you agree or disagree with one of the following statements (just need to pick one)? Find an article that supports your claim. Summarize the article and write a short paragraph explaining your opinion. There is no righ ...

1 we have read about medical etiquette standards and ethics

1. We have read about medical etiquette standards and ethics. What is the difference between medical etiquette and ethics? Provide examples and explain why it is necessary to understand this distinction. 2. Describe the ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro