Which term refers to a sum of money granted by the government to assist an industry or business to keep prices low or competitive?

• A. Investment
• B. Fund
• C. Subsidy
• D. Grant

Answer: (C)

The term that describes a sum of money provided by the government to support an industry or business in order to maintain low or competitive prices is "subsidy." Subsidies are financial aids designed to encourage production and make goods more affordable for consumers. They can help stabilize market prices by providing businesses with additional capital, allowing them to reduce prices or invest in growth without significantly impacting their profit margins.

In contrast, investment refers to the allocation of resources, often in capital projects, with the expectation of generating returns. A fund typically denotes an amount of money set aside for a specific purpose but does not inherently imply government support or price management. A grant, while also a sum of money given for a specific purpose, can be broader and does not always specifically relate to the competitive pricing of an industry.