Parity pricing refers to
a. a price floor that creates a desired relationship between the prices farmers have to pay for goods they buy and the prices they get for goods they sell
b. a price ceiling that creates a desired relationship between the prices farmers have to pay for goods they buy and the prices they get for goods they sell
c. the subsidization of farm prices in markets where new technology is adapted
d. the government's price intervention to create parity among various farm product prices, such as the price per bushel of corn, wheat, or soybeans
e. the government's price intervention to create income equality (or parity) among farms producing identical goods, such as corn or cotton, according to farm size
A
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A price support on milk is not in the interest of milk drinkers, so why do elected public officials successfully implement milk price supports?
A) Milk price supports are in the public interest. B) A small number of households (dairy farmers) gain a great deal, while the costs of the support program is spread among millions of other (milk drinking) households. C) Dairy farmers are selfish. D) Milk drinkers are generally unselfish.
Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the monopoly price. What is the profit earned under this pricing scheme?
A) $5,760 B) $6,400 C) $7,680 D) $7,870
The Chicago Board of Trade promotes liquidity in the futures market by
A) setting prices. B) establishing a price floor. C) allowing the short or the long to renegotiate contract terms. D) standardizing contract terms.
Which of the following is true about U.S. history prior to the 1950s?
a. The inflation rate remained constant during this period b. Cost-push inflation led to depressions, which were followed by slowly-rising price levels. c. The price level remained constant during this period. d. Major wars resulted in high inflation rates, after which the inflation rate tapered off. e. Major wars resulted in high inflation rates that were usually followed by deflation.