Which best states the purpose of a government subsidy?

Question

Responses

keep prices low for consumers around the world

keep prices low for consumers around the world

prevent a budget deficit

prevent a budget deficit

enable companies to outsource jobs

enable companies to outsource jobs

protect domestic producers against international competition

Answer 1

The response that best states the purpose of a government subsidy is:

protect domestic producers against international competition.

Government subsidies are often used to support local industries by lowering their production costs, making them more competitive against foreign companies.