A subsidy exists where the government has conferred a benefit to a domestic firm or industry,except:
A) lower tax rate.
B) guarantee low interest loans.
C) buying goods from domestic firms at higher market prices.
D) grants to research universities.

Question

Quizplus · Accepted Answer

Grants to research universities are not considered a direct subsidy to a domestic firm or industry. These grants are typically aimed at supporting education and research, which can indirectly benefit industries through innovation and workforce development, but they do not directly confer a benefit to specific firms or industries in the way that lower tax rates, guaranteed low-interest loans, or purchasing goods at above-market prices do.

A Subsidy Exists Where the Government Has Conferred a Benefit