A subsidy is a
A)tax imposed by the government on imported goods.
B)payment made by the government to a producer.
C)tax imposed by the government on a producer.
D)payment made by a consumer to a producer.
E)payment made by foreign governments to domestic farmers.

Question

Quizplus · Accepted Answer

A subsidy is a payment made by the government to a producer in order to encourage production of a certain good or service, or to support the industry as a whole.

A Subsidy Is a