What Is a Subsidy

question 24

Multiple Choice

What is a subsidy?

• A)A limit on the number of goods that are imported
• B)A tax on imports
• C)A direct payment to the producers of goods to help them remain profitable
• D)A foreign aid program directed at developing countries

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Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Stockholders' Equity

The portion of a company's capital that belongs to the shareholders, calculated as the total assets of a company minus its total liabilities.

Average Inventory

An accounting measure that calculates the average value of inventory over a certain period of time to help assess inventory levels.

Buying Habits

Patterns or tendencies consumers exhibit when purchasing goods or services, including frequency, timing, and preference.