The goal of a subsidy is to __________. a.) discourage consumption of a good b.) raise revenue for the government c.) encourage production of a good d.) avoid deadweight loss

Respuesta :

The goal of a subsidy is to encourage production of a good.

A subsidy can be described as when the government reduces the cost of production or the cost of a good or service to consumers. It is a form of transfer of wealth from the government to consumers or producers.

The purpose of subsidies is to reduce the price of goods and services. This encourages production or consumption. Subsidies reduces the revenue of the government.

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