Question

Subsidy is

• A. Concession
• B. Discount
• C. Repayment
• D. None of these

Hint:

Subsidy = Government concession to reduce production cost or encourage growth.

Answer 1

The Correct Option is A

Step 1: Meaning of subsidy.
A subsidy is financial assistance given by the government to reduce the cost of production or encourage certain activities.
Step 2: Nature of subsidy.
It is a concession in the form of reduced taxes, cash grants, or low-interest loans to promote industries, agriculture, or exports.
Step 3: Option analysis.
- (A) Concession: Correct, subsidy is a concession provided by government.
- (B) Discount: Wrong, discount is reduction in price by sellers, not subsidy.
- (C) Repayment: Wrong, subsidies are not repayments of money taken.
- (D) None of these: Wrong, since (A) is right.
Step 4: Conclusion.
Subsidy is best defined as a concession given by the government.