Financial assistance to domestic producers in the form of cash payments, low-interest loans, tax breaks, or product price supports is called a(n) ________.

Question

Quizplus · Accepted Answer

Financial assistance given to domestic producers through cash payments, low-interest loans, tax breaks, or price supports is referred to as a subsidy. A tariff is a tax or duty levied on imported or exported goods; an embargo is a severe trade restriction that prohibits the import or export of goods; and an ad valorem tariff is a tariff imposed as a percentage of the imported goods' value. Export tariff is the tax imposed on exported goods. So, the correct option is C - subsidy.

Financial Assistance to Domestic Producers in the Form of Cash