Answer:
TRUE
Step-by-step explanation:
Government subsidies are cash grants or loans that are given to businesses. It aims to encourage activities the government wishes to promote. The range of the subsidy depends on the amount of the goods or services provided.
The 5 most commom types os subsides are:
- Cash subsidies, such as the grants mentioned above.
- Tax concessions, such as exemptions, credits, or deferrals.
- Assumption of risk, such as loan guarantees.
- Government procurement policies that pay more than the free-market price.
- Stock purchases that keep a company's stock price higher than market levels.
Exemple of activities subsidized by the federal government:
- Farm
- Oil
- Ethanol
- Export
- Housing
- Healthcare