Question

When a government pays ranchers to reduce the number of milk cows they have, it is known as a what ?

O Subsidy
O Tax Break
O Productivity Schedule
O Resource Cost

Answer 1

I say a subsidy because the government is controlling how many cows they have.

Answer 2

Subsidy

Step-by-step explanation:

When a government pays ranchers to reduce the number of milk cows they have, it is known as a subsidy.

Subsidy is an incentive given by a government in form of cash or raw materials in order to achieve a common goal.

It might be to increase production of certain commodities or phase out a particular product in the market.

The subsidy helps in paying part of the production costs