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    Question

    What does the term 'subsidy' primarily

    signify?
    A A payment made by companies to shareholders Correct Answer Incorrect Answer
    B A payment made by business enterprises to factors of production Correct Answer Incorrect Answer
    C A payment made by the government to business enterprises without the exchange of goods or services Correct Answer Incorrect Answer
    D A payment by the government for the purchase of goods and services Correct Answer Incorrect Answer

    Solution

    A subsidy refers to financial aid provided by the government directly to businesses or industries, typically without an exchange of goods or services, intended to support and stabilize economic sectors by making their goods and services more affordable.

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