Money paid by a government to reduce the costs of producing goods so that their prices can be kept low termed as:

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Money paid by a government to reduce the costs of producing goods so that their prices can be kept low termed as: Answer: Subsidy

A subsidy is financial assistance provided by a government to individuals, businesses, or industries to lower the cost of producing goods or delivering services. Subsidies help keep prices affordable for consumers, encourage the production of essential goods, support strategic industries, and promote economic development. They may be provided in the form of direct cash payments, tax reductions, low-interest loans, or other financial incentives. Common examples include subsidies for agriculture, fuel, education, healthcare, and renewable energy.

Question context

This question is part of 🌍 Current Affairs within the broader 🌐 Current Affairs & GK subject and appears in the PPSC Punjab Public Service Commission preparation collection. Reviewing the answer together with nearby questions helps reinforce the underlying concept and identify how it may appear in competitive exams.