This is an example of a government subsidy. A subsidy is a financial support provided by the government to help lower the cost of production and encourage the production of certain goods, in this case, avocados.
In the fictional country of Gacacia, the government has decided that the production of avocados is crucial to the economy and the health of its citizens. Therefore, the Gacacia government supports its avocado farmers with $10,000 for every 100 acres of avocado crops produced each year. This is an example of a government
subsidy
transfer payment
surplus
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