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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.

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.

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.

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).

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.

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.

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.