An economist would most likely argue that government subsidies lower production costs and help producers stay in business. True False

## Step 1<br />The problem presents a statement about government subsidies and their impact on production costs and the ability of producers to stay in business. The statement is a claim that an economist would most likely agree with.<br /><br />## Step 2<br />Government subsidies are financial aids provided by the government to economic sectors. These subsidies can be in the form of direct cash transfers, tax breaks, or other financial incentives. The primary purpose of these subsidies is to reduce the cost of production for businesses.<br /><br />## Step 3<br />By reducing the cost of production, government subsidies can help businesses stay in business, especially during times of economic hardship. This is because the reduced costs can allow businesses to continue producing goods and services, even if they are not profitable.<br /><br />## Step 4<br />Furthermore, government subsidies can also stimulate economic growth by encouraging businesses to invest in new technologies or expand their operations. This can lead to increased production and potentially higher profits in the future.<br /><br />## Step 5<br />Given these points, it is reasonable to conclude that an economist would most likely agree with the statement that government subsidies lower production costs and help producers stay in business.