ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a cash grant or loan from the government to support the business.
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a law that promotes safety.
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a tax on imports.
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a specific number of imports allowed.
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Detailed explanation-1: -A subsidy is a direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut. In economic theory, subsidies can be used to offset market failures and externalities to achieve greater economic efficiency.
Detailed explanation-2: -Government grants are sometimes called by other names such as subsidies, cash incentives, duty drawbacks, etc.
Detailed explanation-3: -Definition: Subsidy is a transfer of money from the government to an entity. It leads to a fall in the price of the subsidised product. Description: The objective of subsidy is to bolster the welfare of the society.
Detailed explanation-4: -Basically, subsidies are provided by the government to specific industries with the aim of keeping the prices of products and services low for people to be able to afford them and also to encourage production and consumption.
Detailed explanation-5: -Subsidy is a payment that a. government makes to a producer to supplement the market price of a commodity.