Which of these is a positive incentive for domestic producers? a) a subsidy on imported cars. b) a tariff on cars. c) a subsidy on domestic oranges. d) a tariff on clothes.

The correct answer is C) a subsidy on domestic oranges.

A subsidy is a benefit that is given to a business by the government. It usually in form of tax reduction or cash payment. It is given to remove some type of burden and it can be used as a positive incentive for domestic producers so they can have a product more competitive product.

  C) A subsidy on domestic oranges.

Explanation:

  A subsidy is a grant or a gif of money made by a government to a private person or company to assist an enterprise deemed advantageous to the public. While a tariff is a schedule of duties imposed by a government to imported or exported goods.

  The options given except the C affect negatively the domestic producers. Because either they give benefits to the importers or they charge with more duties the goods produced by the domestic ones.

  I hope this answer helps you.