differentiate between subsidies on products and subsidies on production​

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Answer:

Subsidies influence the level of production and / or pricing policies of the recipient. To be classified as a subsidy on production, the transfer must be current. Subsidies can be payable on specific products or on production in general. A subsidy on a product is a subsidy payable per unit of a good or service.

In the national accounts subsidies are current unrequited payments which government units make to resident producer units, with the objective of influencing their levels of production, their prices or the remuneration of the factors of production. Subsidies on products is a sub-item within subsidies.

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