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- Basic of Economicseconomics-mcqs › basic-of-economics
- Published
- 26 May 2019
- Last updated
- 28 May 2026
A subsidy is defined as financial aid provided by the government to an individual or group to support an activity considered beneficial to the public. Which of the following best represents an example of a subsidy?
Multiple choice question for Basic of Economics. Select an option, then review the explanation below.
Explanation
Option A correctly describes a subsidy as financial aid given by a government or individual to another party to promote public interest. Options B, C, and D refer to financial assistance targeted at specific groups but do not fully capture the broader definition of a subsidy.
More Basic of Economics MCQs
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- 1.Which of the following best describes deflation?
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- 3.Which of the following represents a legitimate form of currency?
- 4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
- 5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?