Which of the following would most likely be used as a subsidy to entice firms to locate or expand facilities in a particular community?
A) quotas
B) an embargo
C) a granting of corporate citizenship status
D) reduced utility rates

Question

Quizplus · Accepted Answer

Subsidies are incentives given to firms by governments or local authorities to encourage them to locate or expand their facilities in a particular community. Reduced utility rates are a common form of subsidy used to attract businesses because they lower the cost of production and increase profits for the firms. Quotas and embargoes are restrictive trade measures that limit imports and exports, which do not encourage firms to locate or expand in a community. Granting of corporate citizenship status is a form of recognition for the contribution of a firm to the community but does not result in any direct financial benefits.

Which of the Following Would Most Likely Be Used as a Subsidy