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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.

Subsidies are payments, tax breaks, or other forms of economic support given by governments to certain industries or economic sectors. The goal of subsidies is to aid or support what are deemed to be key parts of the economy or national infrastructure.

Key Takeaways. 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.

Benefits of subsidies Maintenance of vital industries: Subsidies help keep some older but important industries, like farming, more functional even as technology advances. Moderation of supply and demand: Subsidies can increase the supply of goods because they reduce how much it costs businesses to manufacture them.

Subsidized and subsidised are both English terms. Subsidized is predominantly used in ?? American (US) English ( en-US ) while subsidised is predominantly used in ?? British English (used in UK/AU/NZ) ( en-GB ). In the United States, there is a preference for "subsidized" over "subsidised" (99 to 1).

-z?d- plural subsidies. : a grant or gift especially of money. especially : a grant by a government to a private person or company or to another government to assist an undertaking thought helpful to the public.

To pay part of the cost of something: £50 would help to subsidize the training of an unemployed teenager. The refugees live in subsidized housing provided by the authorities. All private universities are subsidized by the government.