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A subsidy is a direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut. In economic theory, subsidies can be used to offset market failures and externalities to achieve greater economic efficiency.

Subsidize and subsidise are both English terms. Subsidize is predominantly used in ?? American (US) English ( en-US ) while subsidise is predominantly used in ?? British English (used in UK/AU/NZ) ( en-GB ). In the United States, there is a preference for "subsidize" over "subsidise" (97 to 3).

Noun. /?s?bs?di/ (pl. subsidies) [countable, uncountable] money that is paid by a government or an organization to reduce the costs of services or of producing goods, so that the prices can be kept low agricultural subsidies to reduce the level of subsidy.

Essentially, it's a payment to individuals from the government, usually in the form of a targeted tax cut. Subsidies are given in the United States to help relieve some sort of financial weight or burden and are generally intended to be in the public's interest by promoting a social good or economic policy.

In the most general terms, a subsidy can be. defined as any government assistance that (i) allows consumers to purchase goods. and services at prices lower than those offered by a perfectly competitive private.

A production subsidy encourages suppliers to increase the output of a particular product by partially offsetting the production costs or losses. The objective of production subsidies is to expand production of a particular product more so that the market would promote but without raising the final price to consumers.

Subsidy, a direct or indirect payment, economic concession, or privilege granted by a government to private firms, households, or other governmental units in order to promote a public objective.

Subsidized financing is a mode of financing in which the interest on the loans for sourced funds are paid partially or completely by the government. The subsidized financing process is a way to help companies grow and achieve efficiency in financing.

Payments to both commercial firms and low-income individuals are examples of direct subsidies. This could include housing allowances, food vouchers for low-income families, or payments to private businesses as ?cash in the bank? payments.

A subsidy is a direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut. In economic theory, subsidies can be used to offset market failures and externalities to achieve greater economic efficiency.