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Government payments to suppliers are called subsidies

True or false

asked
User Ramigg
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2 Answers

1 vote
Pretty sure it's True
answered
User Elye
by
8.6k points
4 votes

The correct answer is false.

It is false that government payments to suppliers are called subsidies. Government payments to suppliers are called excise taxes.

When a purchase is made on a specific good, it includes excise taxes. It is a flat-rate tax in specific services, goods, or activities. The best example is gasoline. It is already included in the price you pay. Alcohol can be another example of a product with an excise tax.

answered
User L Becker
by
8.5k points

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