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What is the subsidy?

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.

How do you use the word subsidize?

Subsidize The state subsidizes housing for low-income families. She feels that private businesses should not be subsidized by taxpayers. The company subsidizes health insurance for its employees. subsidized agriculture/housing.

What does it mean to pay a subsidy?

A subsidy is money that is paid by a government or other authority in order to help an industry or business, or to pay for a public service.

What does it mean to subsidize a product?

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.

Which is an example of a subsidy?

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.

Does subsidized mean free?

Relating to a cost, etc. that is partly paid for by the government or an organization: A subsidized canteen and interest free season-ticket loans are additional benefits.

What is a subsidy PDF?

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.

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