A Loan Counts as Aid If It Has a Grant

question 20

Multiple Choice

A loan counts as aid if it has a grant element of at least:

• A) 10 percent.
• B) 25 percent.
• C) 50 percent.
• D) none of the above; it never counts as a grant.

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Definitions:

Marginal Cost

The increase in expense a business incurs by manufacturing one more unit of an item.

Subsidize

The act of providing financial assistance or support, typically by the government, to reduce the cost of producing goods or services.

Antitrust Laws

Legislation enacted by the government to prevent new monopolies from forming and police those that exist to protect consumers from exploitative practices.

Justice Department

A national executive department responsible for enforcing the law and administering justice, typically including courts and law enforcement entities.