Question : ________is a payment that a government makes to a producer to supplement the market price of a commodity.
Option 1: Duty
Option 2: Subsidy
Option 3: Excise Duty
Option 4: GST
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Correct Answer: Subsidy
Solution : The correct option is Subsidy
Subsidies are financial aid or support provided by the government to specific producers, industries, or sectors of the economy. It is widely employed to assist in achieving particular governmental objectives or resolving economic issues. There are many different types of subsidies, such as direct cash transfers, tax exemptions, lower interest rates on loans, price supports, and more.
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