Final answer:
Subsidies are government financial assistance that function as the opposite of taxes, designed to reduce production costs and increase supply, thereby shifting the supply curve to the right. The correct answer to the question is 'd. the opposite of taxes.'
Step-by-step explanation:
Subsidies are financial assistance programs provided by the government to support businesses, organizations, or individuals. They are essentially the opposite of taxes, as a subsidy involves the government either directly paying a firm or reducing its taxes to encourage production and consumption of certain goods or services. This tends to reduce the cost of production and can lead to an increase in supply at every given price, effectively shifting the supply curve to the right.
In the context of the provided options, the correct answer would be 'd. the opposite of taxes.' Subsidies can also be used as a policy tool to address positive externalities, ensuring that those who create additional social benefits, like those from new technologies or vaccinations, receive a greater share of the social benefits. For instance, a vaccine subsidy may encourage more people to get vaccinated by reducing the cost, thereby increasing the social benefit of herd immunity.