A government payment to an individual or firm that lowers the cost of consumption or production,respectively,is referred to as which of the following?

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A subsidy is a payment made by the government to an individual or firm that reduces the cost of consumption or production, respectively. It is a form of financial assistance that is designed to encourage certain activities or behaviors, such as investing in renewable energy or buying products from domestic producers. Coasian compensation refers to a negotiation between parties to resolve a dispute, where each party gives something up to reach an agreement. Tax is a charge levied by the government on income, property, goods and services as a means of generating revenue. Free rider problem occurs when individuals or firms benefit from a public good without paying for it, leading to underproduction of the good.

A Government Payment to an Individual or Firm That Lowers