Comparing Economic Systems

Question 5 • EA Academy Civics 9

What is a subsidy?

Answer

assistance money given to an industry to cover the loss of sales

money collected from individuals and businesses to fund government programs

a law created to regulate trade between states and nations

a law created to prevent businesses from creating monopolies

Explanation

A subsidy is financial assistance, usually provided by a government, to support an industry or business. It can help cover costs or offset losses, such as lost sales. Choice A, assistance money given to an industry to cover the loss of sales, best describes a subsidy.

AI-written and checked against the verified answer.

More from this Course

Foreign Policy Tools

Unit Test

Interactions in the US Economy