What is a subsidy?

a. a type of business loan

b. a government contract given to a private business

c. a government payment to encourage or protect a certain economic activity

d. a cooperative pooling of revenue among businesses in one economic sector

C, Subsidies usually given to certain businesses in industries that has their prices going up due to a hard economy, subsidies keep prices down so consumers can purchase at a decent price. Subsidies also prevent massive corporations from going bankrupt in a hard economy