Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Financial assistance that is provided directly to consumers
B
Support provided through the reduction of costs for producers
C
Grants given to non-profit organizations
D
Tax rebates for low-income households
Understanding the Answer
Let's break down why this is correct
Answer
Indirect subsidies are financial supports given by the government that do not come in the form of direct cash payments. Instead, they often take the shape of tax breaks, reduced prices for services, or lower interest rates on loans. This means that the government helps businesses or people by lowering their costs, making it easier for them to succeed or buy what they need. For example, if a government offers a tax credit to a solar panel company, that company can save money on its taxes, which can help it to lower prices for consumers. This type of support encourages growth in certain industries or helps people afford essential services without giving them direct cash.
Detailed Explanation
Indirect subsidies help producers by lowering their costs. Other options are incorrect because Some might think indirect subsidies go directly to consumers; People might confuse grants to non-profits with indirect subsidies.
Key Concepts
indirect subsidies
Topic
Types of Subsidies
Difficulty
easy level question
Cognitive Level
understand
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