Question

All of these are examples of subsidy except ____________________.

1) Low interest loans given for students to attend college.

2) Payments made to farmers in order for them to plant desired crops.

3) Welfare payments given to people who have never worked.

4) Student loan forgiveness given to teachers if they teach in high poverty areas.

Answer 1

4) Student loan forgiveness given to teachers if they teach in high poverty areas.

Step-by-step explanation:

A subsidy is assistance from to government to the private sector or another public sector that aims at promoting production in the specific sector of the economy. Subsidies are in the form of cash donations, tax concessions, government purchase policies, or assumption of risk. The objective of subsidies is to lower the cost of production, thereby reducing the market price of outputs.

The most common types of subsidies are in the agricultural and manufacturing sectors. In agriculture, the government often subsidizes production by giving cash incentives to farmers. The subsidies help reduce the cost of food. In manufacturing, the government offers export subsidies to businesses to support them in increasing exports.

Other types of subsidies include loan guarantees, loans at reduced interest rates, and tax waivers.