What type of subsidy is primarily aimed at increasing the production of goods by lowering production costs for producers?

The type of subsidy aimed at increasing the production of goods by lowering production costs for producers is called a production subsidy. This subsidy helps businesses by giving them financial support, which allows them to produce more goods at a lower cost. For example, if a government provides a subsidy to a farmer for growing wheat, the farmer can afford to plant more wheat because their costs are reduced. As a result, this can lead to an increase in the overall supply of wheat in the market. By encouraging more production, production subsidies can help stabilize prices and ensure that there are enough goods available for consumers.