A subsidy is
A) a payment that the government makes to private producers of goods and services.
B) a tax imposed on the producers of certain goods or services.
C) a voucher received by the government from producers of goods and services.
D) the revenue received from the government to produce a good or service by a public authority.
E) a tax imposed on the consumers of certain goods or services.

Question

Quizplus · Accepted Answer

A subsidy is a payment that the government makes to private producers of goods and services. It is intended to encourage increased production of the good or service, which can lead to lower prices and increased availability for consumers. A subsidy is not a tax on producers or consumers, nor is it a voucher or revenue received from the government.

A Subsidy Is