Question

A subsidy

A) is a tax imposed by the government on imported goods.
B) is a payment made by the government to a farmer.
C) is a tax imposed by the government to a farmer.
D) is a payment made by a consumer to a farmer.
E) is a payment made by foreign governments to domestic farmers.

Answer 1

A subsidy is a payment made by the government to a farmer to reduce the cost of production.

Step-by-step explanation:

A subsidy is a payment made by the government to a farmer. It is the opposite of a tax and serves to reduce the cost of production for the farmer. By providing financial assistance, the government aims to support and encourage agricultural activities.