The invention of parity price ratios was designed to protect farmers' purchasing power. Over the years, these parity price ratios have
a. been fixed at 100 percent
b. increased to approximately 125 percent of their initial value set in 1910–1914
c. been increasing at approximately 25 percent per year
d. been falling and are less than 50 percent of the 1910–1914 ratio
e. been volatile, increasing and decreasing sometimes dramatically, but still averaging approximately 100 percent of 1910–1914 levels, which was the long-run target
D
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Which of the following statements is true?
A) Macroeconomics studies how individuals make choices. B) Microeconomics is the study of an economy as a whole. C) The study of the inflation rate is covered under microeconomics. D) The study of the unemployment rate is covered under macroeconomics.
X-inefficiency implies:
a. the practice of using less than the optimal amount of inputs for production. b. the practice of using the lowest quantity of input to produce maximum output. c. always producing less than the optimal amount of output. d. excessive use of inputs relative to best-practice methods.