From the list below, the best definition of the word 'subsidy' is

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BlackTom AI · Accepted Answer

To start, we should carefully interpret what a subsidy means in economic terms. 
Option a. states: a payment provided by the government to a person or a firm, in order to encourage a particular behaviour. This aligns with the standard definition of a subsidy, which is a financial assistance given by government to reduce the cost or incentivize certain activities, such as production, hiring, or consumption. The goal is to encourage a specific behavior. 
Option b. describes a product that can be used as an alternative to another product. This is essentially the notion of a substitute good, not a subsidy. It explains consumer choice between similar products rather than any government financial support.
Option c. refers to the value of the next best alternative lost when making a decision, which is the concept of opportunity cost. While related to economic decision-making, it does not define a subsidy or government payment. 
Option d. describes a levy imposed by the government on a person or a firm to discourage a particular behavior. That is the definition of a tax or a penalty, not a subsidy. It serves as a deterrent rather than an incentive.
In sum, option a captures the core idea of a subsidy as a governmental payment intended to encourage specific actions, whereas options b, c, and d identify other economic concepts (substitutes, opportunity cost, and taxes/levies) that do not define subsidies.

From the list below, the best definition of the word 'subsidy' is

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