The term ______________ denotes bonus or financial aid which is given by a government to an industry to help it compete with other units

 Options:

A. Incentive. B. Subsidy. C. Concession D. Bounty.

The Correct Answer Is:

D. Bounty.

In the realm of economic policies, governments employ various tools to foster growth and competitiveness in their industries. One such tool is the provision of financial aid or bonuses, which is designed to assist industries in vying with their counterparts.

In this context, it is essential to distinguish between different terms that are commonly used to describe this support. This article will delve into the concept of government assistance, focusing on the term ‘bounty’ as a means of financial aid and elucidate why it is the correct choice among the options provided.

d. Bounty

A bounty, in the context of government support for industries, refers to a financial reward or incentive provided to a specific industry to enhance its competitiveness.

This support is often aimed at stimulating production, encouraging innovation, or safeguarding against unfair competition. Bounties are typically tailored to address specific challenges or opportunities within an industry.

Reasons for Choosing ‘Bounty’ as the Correct Term

i. Historical Usage:

Historically, the term ‘bounty’ has been used to denote a financial reward or incentive given by a government to promote specific activities. For instance, in the 19th century, various governments offered bounties for activities such as agriculture, mining, and manufacturing to stimulate economic growth.

ii. Targeted Assistance:

Bounties are generally designed to address particular needs or challenges faced by an industry. They are strategic interventions that aim to propel growth in specific sectors, making them a precise instrument of government support.

iii. Encouraging Specific Outcomes:

Bounties are often linked to achieving specific outcomes, such as increased production, technological advancement, or market expansion.

This ensures that the financial aid is channeled towards achieving tangible and measurable results.

iii. Versatility:

While bounties are often associated with financial aid, they can take various forms, including tax breaks, grants, or direct cash incentives.

This versatility allows governments to tailor their support to the unique requirements of each industry.

iv. Balancing Competition:

Bounties are essential for leveling the playing field in industries where there may be disparities in resources, technology, or market access. By providing financial aid, governments can help struggling industries compete effectively with more established players.

Why the Other Options Are Not Correct

a.  Incentive:

While an incentive is a general term for something that motivates or encourages action, it does not specifically denote a financial aid provided by a government to an industry.

Incentives can take various forms, including non-financial rewards or benefits.

b. Subsidy:

A subsidy is a financial aid provided by a government to a business, industry, or individual to lower the cost of a particular product or service.

While similar to a bounty in some aspects, subsidies are often more broadly applied and may not always be linked to competition.

c. Concession:

A concession typically refers to a grant or privilege given by a government, often in the form of a license or right to operate in a specific area.

While concessions can have financial implications, they are not synonymous with the targeted financial support that a bounty entails.

In conclusion, when discussing government support for industries, it is crucial to understand the specific terms used to describe the various forms of assistance. Among the options provided, ‘bounty’ stands out as the correct term to denote financial aid or bonuses provided by a government to help an industry compete effectively.

Its historical usage, targeted nature, and association with achieving specific outcomes make it the most suitable choice. While other options like ‘incentive’, ‘subsidy’, and ‘concession’ have their own distinct meanings and applications, they do not directly align with the concept of industry-specific financial aid.

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