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The Government's Budget

Question 2 • * HSA 26-27 US Government

The United States government gives [___] to some industries in the form of direct payments or loans. As a result, producers can sell these products at a [___] price while still making a profit.If the government wants to discourage consumers from purchasing imported goods, a [___] can be created to tax imports.

Answer
A
lower
B
higher

Explanation

Government payments or loans help producers cover their costs, so they can sell their products at a lower price and still make a profit. A tax on imports is called a tariff; it makes imported goods more expensive and can discourage consumers from buying them. The correct choice is “lower.”

AI-written and checked against the verified answer.

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