Question : Subsidies involves- Option 1: Selling the goods above the cost of production Option 2: Selling the good below the cost of production Option 3: Selling the product it cost less indirect taxes Option 4: All of the above.

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Question : Subsidies involves-

Option 1: Selling the goods above the cost of production

Option 2: Selling the good below the cost of production

Option 3: Selling the product it cost less indirect taxes

Option 4: All of the above.

Team Careers360 24th Jan, 2024

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Answer (1)

Team Careers360 25th Jan, 2024

Correct Answer: Selling the good below the cost of production

Solution :

Subsidies involve selling the goods below the cost of production. It means that a portion of cost is being paid by the government which helps in reducing the cost of production.

Hence, option B is correct.

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