197k views
3 votes
Money granted by the government to assist a business or industry in lowering the cost of its product/service.NVM

User Jsarbour
by
8.6k points

1 Answer

5 votes

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).

User Zsolt Szilagyi
by
8.3k points

Related questions

asked Jul 16, 2024 53.4k views
Avi Turner asked Jul 16, 2024
by Avi Turner
8.0k points
2 answers
0 votes
53.4k views
asked Dec 1, 2024 170k views
Sebastien Horin asked Dec 1, 2024
by Sebastien Horin
8.2k points
1 answer
4 votes
170k views
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.