The government of Zandria has adopted an economic policy that it thinks would help it gain favorable political treatment in the future. Under this policy, the government provides direct assistance to domestic producers in the form of tax breaks, grants, cash payments, low-interest loans, and government-owned equity. In this scenario, the government of Zandria is using _____.

Question

Quizplus · Accepted Answer

The government of Zandria is using subsidies, as these are direct financial supports such as tax breaks, grants, cash payments, low-interest loans, and government-owned equity provided to domestic producers to help them compete in the market or achieve policy goals.

The Government of Zandria Has Adopted an Economic Policy That