Question

are subsidies paid per unit of a good or service produced or imported

• A. Production subsidies
• B. Product Subsidies
• C. Tax Subsidy

Answer 1

The correct option is B Product Subsidies

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Subsidies on products is a sub-item within subsidies. Subsidies on products are subsidies paid per unit of a good or service produced or imported.

The subsidy may be a specific amount of money per unit of quantity of a good or service, or it may be calculated ad valorem as a specified percentage of the price per unit.

Subsidy on production is independent of the volume of goods or services produced.