Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A payment made to a business to lower its costs
B
A tax break given to consumers
C
A loan provided by the government
D
A reduction in interest rates
Understanding the Answer
Let's break down why this is correct
Answer
A direct subsidy is financial help that the government gives to individuals or businesses to support them directly. This money can help lower costs for things like food, housing, or education, making them more affordable for people. For example, if a farmer receives a direct subsidy, it means the government gives them money to help cover the costs of growing crops, which can help keep food prices stable. Direct subsidies are important because they can encourage production and support those in need, helping to improve overall economic conditions. By providing this kind of support, the government aims to promote fairness and stability in the market.
Detailed Explanation
A direct subsidy is money the government gives to a business. Other options are incorrect because Some might think a tax break is the same as a direct payment; A loan is money you borrow and must pay back.
Key Concepts
direct subsidies
Topic
Types of Subsidies
Difficulty
easy level question
Cognitive Level
understand
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