Money granted by the government to assist a business or industry in lowering the cost of its product/service. NVM

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Colt Brooks

Social Studies

3 July, 19:49

Money granted by the government to assist a business or industry in lowering the cost of its product/service. NVM

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Munchkin · Answer 1

Subsidy:

A subsidy, as a stimulus to the economy, is the difference between the real price of a good or service and the real price charged to the consumer of these goods or services. In economics the subsidy is applied to artificially stimulate the consumption or production of a good or service. They are the anti-tax mechanisms.

A subsidy can be given by the state or the government, with the purpose of economic stimulus to support the low-income native population. It is also usually granted from the State to private companies, in order to avoid possible increases in tariffs reaching final consumers of the products or services they provide, and thus protect the regional economy (mainly in times of inflation).