Subsidies are designed to help domestic industries by

Question

Quizplus · Accepted Answer

Subsidies can be used for all three purposes mentioned in the options. They can help domestic producers compete at home against imported products, by lowering their costs and making their products more attractive to consumers. They can also help these producers compete abroad against foreign products, by allowing them to price their goods more competitively in international markets. Finally, subsidies may also enable producers to price their goods below the cost of production without going out of business, thereby ensuring their survival and continued contributions to the domestic economy.

Subsidies Are Designed to Help Domestic Industries by