Which of the following statements best defines subsidy?
A) It refers to the labeling and safety requirements that are designed to protect consumers from products perceived as dangerous.
B) It is a form of direct assistance to domestic producers in the form of tax breaks, grants, cash payments, low-interest loans, and government-owned equity.
C) It refers to a direct limit on the number of goods that can be imported into or exported from a country.
D) It is a particular type of quota that limits all forms of trade on entire categories of goods and services.

Question

Quizplus · Accepted Answer

Subsidies are financial support provided by governments to businesses, industries, or individuals, often aimed at encouraging production, reducing costs, or supporting a particular economic activity. This can include tax breaks, grants, cash payments, low-interest loans, and government equity participation.

Which of the Following Statements Best Defines Subsidy