A subsidy is a:
A)form of tax.
B)government regulation of the quantity sold in a market.
C)a tax designed to encourage particular purchases or productive activities.
D)a government payment designed to encourage particular purchases or productive activities.

Question

Quizplus · Accepted Answer

A subsidy is a government payment designed to encourage particular purchases or productive activities. It is a way for the government to support certain industries or groups and can be used to stimulate economic growth or address market failures. Unlike a tax, which collects revenue from individuals or businesses, a subsidy provides financial support or incentives to these same groups.

A Subsidy Is A