Subsidies are:
A) Equal to expenditures less any revenue gathered by charging fees or requiring contributions
B) Equal to the total costs of investment operation and maintenance
C) Equal to the total costs of investment operation and maintenance plus fees charged for use
D) The cost of advertising the new services offered

Question

Quizplus · Accepted Answer

Subsidies refer to financial assistance provided by the government or other organizations to support specific activities, industries, or groups. They are usually provided in the form of grants, loans, or tax breaks. Subsidies are equal to expenditures (i.e., the money spent on providing the financial assistance) less any revenue gathered by charging fees or requiring contributions. Therefore, the correct option is A. Option B is incorrect because it refers to the total costs of investment operation and maintenance, which is not the same as subsidies. Option C is also incorrect because it adds fees charged for use to the total costs of investment operation and maintenance, which is not an accurate definition of subsidies. Option D is irrelevant because it refers to the cost of advertising, which has nothing to do with subsidies.

Subsidies Are