What is a Subsidy?
A subsidy is when the government gives money to help people or businesses .It makes things cheaper to buy or produce.
Why do governments give subsidies?
To make things affordable for people
To help farmers, students, or workers
To support important industries
To help the country grow
Examples of Subsidies:
Farmers get money to buy seeds and fertilizer
Poor families get food at lower prices
Petrol or diesel is sold at a lower price
Students pay less fees in schools or colleges
Good and Bad Sides of Subsidies:
Good:
Helps poor people
Makes prices lower
Supports the economy
Bad:
Government spends a lot of money
Can be misused or wasted.
In this i learned about what is subsidies.
What are the main types of subsidies (e.g., direct, indirect, production, consumption)?
How do subsidies influence consumer behavior and producer incentives?
What are the economic arguments for and against government subsidies?
How can subsidies lead to market distortions or inefficiencies?
How do governments decide which industries or sectors to subsidize?
What are the differences between subsidies in developed versus developing countries?
How do subsidies impact international trade and relations?
What mechanisms exist to prevent abuse or corruption in subsidy programs?
keywords
Indirect subsidy
Production subsidy
Consumption subsidy
Market distortion
Government intervention
Price support
Economic efficiency
Welfare economics
Fiscal policy
Agricultural subsidy
Fossil fuel subsidy
Renewable energy subsidy
Income inequality