The relationship between farm and nonfarm prices that existed during the period from 1910 to 1914 is known as
A)The payment-in-kind program.
B)The target price.
C)The parity price.
D)Price supports.

Question

Quizplus · Accepted Answer

The relationship between farm and nonfarm prices that existed during the period from 1910 to 1914 is known as the parity price. The parity price refers to the price level that provides farmers with the same purchasing power they had during a specific base period. This concept was developed in response to the large price disparities between agricultural products and manufactured goods, which were seen as a major cause of financial hardship for farmers.

The Relationship Between Farm and Nonfarm Prices That Existed During