If government land is leased or sold for oil and coal exploration at lower-than-market rates, it is an example of a(n)

Question

Quizplus · Accepted Answer

Leasing or selling government land for oil and coal exploration at lower-than-market rates would qualify as a subsidy. A subsidy is a form of financial assistance or support given to individuals, organizations or industries by the government to encourage specific production or behavior. In this case, the government is providing financial support to oil and coal companies by charging them lower-than-market rates for leasing or purchasing government land.

If Government Land Is Leased or Sold for Oil and Coal