A subsidy is defined as
A) a payment that must be made to the government whenever a good or service is sold.
B) the number of trades that are eliminated from a market when a tax is imposed.
C) the difference between total revenue and total cost for a business firm.
D) a payment to either the buyer or seller of a good or service, usually on a per-unit basis, when a good or service is purchased.

Question

Quizplus · Accepted Answer

A subsidy is a financial assistance provided by the government to either the buyer or seller, typically on a per-unit basis, to encourage the purchase or production of a good or service.

A Subsidy Is Defined as