Question

An example of a subsidy would be where the government ______. A) adds a $ .50...

An example of a subsidy would be where the government ______.


A) adds a $ .50 charge to a pound of sugar

B) requires a country to pay a 10% sugar import fee

C) provides a payment of $1 per pound of sugar to sugar cane farmer

D) mandates that the price of a pound of sugar cannot increase above $3

Homework Answers

Answer #1

an example of a subsidy would be where the government provides a payment of $1 per pound of sugar to sugar cane farmer.

we can define subsidy as an incentive that is been provided by the government to individuals as grants or even as cash. thus, in this example, the government provides payment of $1 per pound of sugar as subsidy to the sugar cane farmer. this will boost their activities and serves as an incentive to them so that these subsidies can help the farmers to reduce the risk incase any uncertanities occour.

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