A subsidy is:
A) similar to a reverse tax.
B) calculated as the price received by sellers minus the price paid by buyers.
C) paid for by taxpayers.
D) All of the answer choices are correct.

Question

Quizplus · Accepted Answer

A subsidy is a form of government intervention in which the government provides financial support to producers or consumers of a certain good or service. This financial support is often paid for by taxpayers and can take many forms, including cash payments, tax breaks, or low-interest loans. Thus, all of the answer choices are correct.

A Subsidy Is